The fees and taxes involved in a Real Estate
purchase can be between 3% - 7%. This includes, Lawyer’s
Fees of typically 2.17% and Purchase Tax of 0.5% up until
5% of the purchase price depending on the cost of the
for foreign non-residents are available in Israel.
We have listed some general mortgage information below.
To get a more detailed explanation on the several types
of mortgage options we recommend you take a look at the
Mortgage Brokers specializing in financing for foreign
non-residents purchasing in Israel.
USA Tel: (718) 689 1564
Tel: (972 2) 582- 4081
Fax: (972 2) 581 9629
UK: 0207 097 5160
There are a number of mortgages available from the banks
in Israel. The following is a brief summary of some of
the most popular mortgage options. Each mortgage is designed
and suitable to a particular client depending on a number
of factors, including but not limited to: Currency of
income, place of residency, financial goals, economic
outlook and economic standing.
Please note all mortgages offered in Israel are variable
and are linked to either the LIBOR rate, inflation rate
or some other index. Short-term loans are available at
a fixed interest rate, usually for not more than 4 years.
Foreign Currency Mortgage
A foreign currency mortgage is available in a number of
the major currencies. The mortgage's interest is the LIBOR
rate plus a fixed premium set by the bank. These mortgages
are generally available up to 25 years and the repayment
is in the currency that was borrowed.
Dollar Linked Mortgage
A Dollar linked mortgage is a shekel mortgage linked to
the dollar rate for a period of up to 30 years. The currency
of loan and repayment is in shekels according to the dollar
rate. The mortgage's interest is the LIBOR rate plus a
fixed premium set by the bank.
Dollar Linked Mortgage in a protected interest rate
This mortgage is identical to the dollar-linked mortgage,
except for the fact that the initial interest rate is
fixed in the first 9 - 18 months. At the end of that period,
the interest rate will be updated according to the LIBOR
plus a fixed premium set by the bank.
Euro Linked Mortgage
Similar terms to dollar linked, except linked to the Euro.
Most suitable to a person whose primary income is in Euros.
A loan extended to borrowers who own an apartment, for
purchasing a property in the interim period until their
previous apartment is sold. This is a short-term loan
for a period of up to two years.
General Terms and Conditions
Depending on the bank the LIBOR rate may change every
3,6,9 or 12 months. Most dollar-linked loans have the
possibility of early repayment without incurring any major
penalty or fee. In some cases it is possible to arrange
interest only payments up to a maximum of 2 years depending
on the financial strength of the applicant.
A Shekel linked mortgage at fixed interest A mortgage
at a fixed interest rate linked to the consumer price
index for a period of 4 to 30 Years.
A linked mortgage at variable interest
A mortgage at variable interest linked to the consumer
price index, which can Be spread over an extended period
of up to 32 years - and thus making it Possible to have
lower monthly payments
A linked mortgage at the Prime interest rate
A mortgage linked to the prime interest rate (based on
the Bank of Israel's Rate) for a period of up to 25 years