- What percentage of the purchase price can I borrow?
- What do I need to pay before the bank will pay my mortgage equity?
- Can I get a fixed or variable rate of interest?
- How long will it take to complete the mortgage?
- What documents do I need to submit with my application?
- How do I know which is the best mortgage for me?
- Will IsraMortgages help me arrange an appraisal and mortgage insurance?
- Why should I use IsraMortgages?
- Why get pre-approved?
- Can a foreign resident get a mortgage in Israel?
- Will the bank offer me a mortgage based on the purchase price or the appraised value?
Question: What percentage of the purchase price can I borrow?
This depends on numerous factors. Firstly, the bank will only lend a percentage of the appraised value which is not always the same as the purchase price.
It is possible to borrow up to 95% of the appraised price if you take out a special type of insurance. 60% is the normal percentage you can borrow.
Question: What do I need to pay before the bank will pay my mortgage equity?
The banks will not pay your mortgage equity until you have paid both the purchase tax and your equity. Bear in mind that it can take a little time to move money from overseas to Israel, so make sure you have taken care of this well before the date you need your mortgage, otherwise delays can occur.
Question: Can I get a fixed or variable rate of interest?
You can get both fixed and variable rates of interest on your mortgage. However many loans are linked to inflation in Israel and hence the outstanding loan is adjusted each year. Please either call us or visit our mortgage options page.
Question: How long will it take to complete the mortgage?
We advise our clients that it can take up to 70 days from submitting the completed application forms to receiving your mortgage.
Question: What documents do I need to submit with my application?
The following has to be submitted along with your application:
Completed and signed application form
3 months bank statements
Proof of any other assets, stocks and shares, properties etc
2 years income tax return/1040 (if self employed)
3 months wage slips (if employed)
Credit report and score
Copy of both applicants passports
Question: How do I know which is the best mortgage for me?
We present all of the available mortgages to you, and present to you our recommendations based on our experience, expertise and your needs.
Question: Will IsraMortgages help me arrange an appraisal and mortgage insurance?
We have specially discounted rates with appraisers and insurance companies. Speak to one of our advisers for more details.
Question: Why should I use IsraMortgages?
There are many reasons why you should use IsraMortgages. Firstly, we are able to obtain better rates of interest for your mortgage than if you were to go to the bank yourself. We can also help reduce or even eliminate the initial fee charged by the bank to start the mortgage.
If that isnt enough, we do all the running around for you completing all of the application forms reporting back to you all your options. We will also advise you what we think is the best mortgage for you, not for your bank manager!
Question: Why get pre-approved?
Imagine you sign a contract on a property, and you need to borrow 70% of the value of the property. Once signed you are committed to buying the property, if you have not been pre-approved, you may only be able to borrow 50%. If this is the case, there is an extra 20% you need to procure to cover the difference.
Question: Can a foreign resident get a mortgage in Israel?
Yes. Many of the banks in Israel offer mortgages to foreigners.
Question: Will the bank offer me a mortgage based on the purchase price or the appraised value?
In most cases it is based on the lower of the two. So if the property price is 2,000,000 NIS but it is only appraised at 1,900,000 NIS, the percentage is calculated on the lower amount 1,900,000 NIS.