Getting a mortgage (Mashkanta) in Israel as a foreign buyer is entirely possible — but the rules are stricter than for Israeli residents. This guide explains everything you need to know for 2026.
LTV Limits for Foreign Buyers
The Bank of Israel sets strict Loan-to-Value (LTV) limits based on buyer status:
- Foreign buyers: Maximum 50% LTV — you need 50% down payment
- Israeli residents (additional property): Maximum 50% LTV
- Israeli residents (first home): Maximum 75% LTV
- New Immigrants (Olim) within 7 years: Maximum 75% LTV
Current Interest Rates — 2026
Israeli mortgages come in three main tracks, usually combined in a "mixed" structure:
- Fixed rate (Kalatz): 4.8%–5.6% — locked for the full term
- Prime-linked: 4.2%–5.0% — tracks Bank of Israel prime rate (currently 4.5%)
- CPI-linked fixed: 2.8%–3.5% — appears cheapest but real cost rises with inflation
The standard recommended structure is 1/3 fixed + 1/3 prime-linked + 1/3 CPI-linked, giving a blended rate of approximately 4.2%–4.8%.
Banks That Accept Non-Resident Applications
Not all Israeli banks are equally welcoming to non-resident applicants. The best options are:
- Bank Hapoalim: Most experienced with diaspora buyers, dedicated international desk
- Bank Leumi: Strong international network, multiple foreign language support
- Mizrahi-Tefahot: Specialist in property-backed lending, often the most competitive rates
- Discount Bank: Competitive for international clients
Required Documents
Israeli banks require extensive documentation. Prepare these in advance:
- Passport and valid visa (or proof of right to reside in Israel)
- 3–6 months of bank statements (Israeli and foreign accounts)
- Proof of income: last 3 payslips, employment contract, or 2 years of tax returns (self-employed)
- Proof of down payment source (gift letter if funds from family)
- Purchase contract (or draft)
- Certificate of Residence from your home country tax authority
The Pre-Approval Process
Getting mortgage pre-approval before signing a purchase contract is strongly recommended. The process:
- Submit application with documents to 2–3 banks simultaneously
- Bank reviews credit history, income, and down payment
- Pre-approval issued (valid for 60–90 days)
- Once property identified, bank orders valuation
- Final mortgage offer issued
- Mortgage activated at closing (kesef)
Fund Transfer Rules
Transferring money to Israel for a property purchase involves AML compliance:
- Funds must come from a bank account in your name
- Documentation of fund source required for amounts over $50,000
- Allow 5–10 business days for wire clearing
- Open an Israeli NIS account before signing to simplify transfers