Question 1

What is a Mashkanta (Israeli mortgage)?

Accepted Answer

A Mashkanta is the Hebrew term for a mortgage loan in Israel. Israeli banks offer Mashkanta loans with various track options including fixed-rate (Kavua), variable-rate (Mishtane), and Prime-linked tracks. Borrowers typically combine multiple tracks to balance risk and cost.

Question 2

How much down payment do I need to buy property in Israel?

Accepted Answer

Israeli residents typically need a minimum 25% down payment for their first property. Non-residents and investors require at least 50% down. New Olim (immigrants) may qualify for special mortgage programs with reduced down payment requirements through Bank of Israel guidelines.

Question 3

What mortgage benefits do Olim (new immigrants) get in Israel?

Accepted Answer

Olim Chadashim are eligible for special Mashkanta benefits including reduced interest rates, lower down payment requirements (as low as 25% for first-time buyers), and government-subsidized mortgage tracks. These benefits are available through Israeli banks for up to 15 years after making Aliyah.

Question 4

What are the current mortgage interest rates in Israel?

Accepted Answer

Israeli mortgage rates vary by track type. As of 2026, Prime-linked rates are approximately 5-6%, fixed-rate tracks range from 4-6% depending on the term, and variable CPI-linked tracks range from 3-5%. Rates depend on the Bank of Israel base rate and individual bank offers.

Question 5

What is the maximum mortgage term in Israel?

Accepted Answer

The maximum mortgage term in Israel is 30 years, though most borrowers choose 20-25 year terms. Bank of Israel regulations require that monthly mortgage payments do not exceed approximately one-third of the borrower household income.

Question 6

Can foreigners get a mortgage in Israel?

Accepted Answer

Yes, foreign nationals can obtain mortgages in Israel, but with stricter terms. Non-residents typically need a 50% minimum down payment and may face higher interest rates. Some Israeli banks specialize in foreign buyer mortgages and offer English-language services.

Question 7

What additional costs should I budget for when buying property in Israel?

Accepted Answer

Beyond the purchase price, buyers should budget for purchase tax (Mas Rechisha, 0-10% depending on property value and buyer status), lawyer fees (0.5-1.5%), real estate agent commission (1-2% plus VAT), mortgage arrangement fees, and property appraisal costs. Olim receive significant purchase tax reductions.

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