Types of Israeli Mortgages
Explore the principal types of Israeli mortgage available, from home purchases and refinancing to construction and equity release.
Home Purchase Mortgage
For purchasing a primary residence in Israel.
The most common mortgage type, for buyers purchasing a home to live in. The standard regulatory maximum loan-to-value for a first or sole home is 75%, subject to the bank, the borrower’s circumstances, income, property and valuation.
Replacement Home Mortgage
For homeowners selling an existing home and purchasing another property.
If you are selling your current home and buying a new one, the bank will assess the transition, existing mortgage liabilities and the new purchase together. The standard regulatory maximum LTV for a replacement home is 70%, subject to bank assessment and circumstances.
Investment Property Mortgage
For applicants purchasing an additional residential property.
Lending terms, equity requirements and bank treatment differ from a first or replacement home. The standard regulatory maximum LTV for an investment or additional property is 50%, subject to the bank and the applicant’s circumstances.
Mortgage for Olim
For new immigrants purchasing a home in Israel.
Some olim may be eligible for state-assisted benefits or a mortgage eligibility certificate, subject to current rules and individual eligibility. We do not promise grants, fixed benefits or preferential rates without checking the current government programme.
Foreign Resident Mortgage
For applicants who do not live permanently in Israel or whose main income is earned abroad.
Foreign resident mortgages involve additional compliance, currency, income verification and legal considerations. Non-resident and foreign-buyer mortgages are commonly considered at lower loan-to-value levels, frequently up to approximately 50%, subject to the bank, the property and the applicant’s circumstances.
Construction Mortgage
For building a property on owned land.
Funds may be released in stages, subject to bank approval, valuations and construction progress. The bank will typically require construction permits, plans and stage-by-stage appraisals.
Renovation Mortgage
For substantial renovation, extension or improvement work.
For borrowers looking to finance significant renovation or extension work on an existing property. The bank may require renovation plans, contractor details and a valuation of the completed property.
Mortgage Refinance
For replacing or restructuring an existing Israeli mortgage.
Refinancing may be appropriate when interest rates change, when better terms become available, or when restructuring your mortgage mix. Early repayment charges may apply to certain tracks.
Equity Release or Loan Against Property
For eligible property owners wishing to raise funds against an existing Israeli property.
Clearly distinct from UK lifetime mortgages or UK equity release products. Eligibility, terms and lending criteria are set by the bank and depend on the property value, existing mortgages and the borrower’s financial position.
Bridge or Interim Mortgage
For applicants purchasing a replacement property before receiving sale proceeds from an existing property.
A short-term arrangement to bridge the gap between purchasing a new property and completing the sale of an existing one. The bank will assess both transactions, equity and repayment strategy.
Non-Bank Property Finance
Specialist property finance from lenders outside the traditional Israeli banking system.
Non-bank finance may be appropriate for complex applications, urgent purchases, overseas-income applicants, bridging requirements or properties that fall outside standard bank criteria. Costs, terms and security requirements may differ materially from a conventional bank mortgage.
Explore Non-Bank FinanceNot Sure Which Option Is Right?
Start a mortgage assessment and we will help you understand which mortgage type fits your circumstances.
Start Your Mortgage Assessment