Israeli Mortgage Terminology

Mashkanta

A loan secured against property.

Ishur Ekroni

An initial indication from a bank of the borrowing it may consider, subject to full underwriting and property checks.

Shammai

A professional appraiser used to assess the property for the bank.

Tabu

The Israeli Land Registry. Not every property is necessarily registered in the same way and legal advice is required.

Madad

The index to which some mortgage balances or payments may be linked.

Ribit Prime

A variable reference rate used in some Israeli mortgage tracks.

Ribit Kvuah

An interest rate fixed for the relevant period, although the loan may still be linked or unlinked depending on the track.

Ribit Mishtana

An interest rate that changes at defined intervals or according to a reference mechanism.

Tzamud Madad

A mortgage track linked to an index such as the Consumer Price Index.

Lo Tzamud

A mortgage track where the principal is not linked to the Consumer Price Index.

Tamhil Mashkanta

The combination of mortgage tracks making up the full mortgage.

Amalat Piraon Mukdam

A charge that may apply when repaying or refinancing certain mortgage tracks early.

Teudat Zakaut

A certificate used in connection with certain state housing or mortgage-assistance programmes, subject to eligibility.

Hon Atzmi

The applicant’s own contribution towards the purchase.

Shiur Mimun

The percentage of the property value funded through borrowing (LTV).

Horaat Keva

An automated payment instruction used for regular mortgage payments.

Yipuy Koach

A legal authority that may be required as part of the transaction.

He’arat Azhara

A Land Registry entry commonly used to record rights or obligations in connection with a property transaction.

Mimun Chutz-Bankai

Finance provided by a lender outside the traditional banking system. Non-bank lenders may apply different underwriting criteria and offer solutions for urgent, unusual or complex property transactions. Costs, security requirements and repayment terms may differ materially from a conventional bank mortgage.

Halva’at Gishur

Short-term finance intended to bridge a temporary funding gap, often pending a property sale, long-term mortgage or another source of repayment.

Halva’ah Keneged Neches

Borrowing secured against an existing property. The amount available and permitted purposes depend on the lender and the borrower’s circumstances.

Tochnit Yetzi’ah

The planned method of repaying short-term finance. Examples include sale of a property, refinancing through an Israeli bank, receipt of investment proceeds, maturity of another asset, or repayment from verified business or personal funds.