Mortgage in Israel for Foreign Residents and New Olim – The Complete Guide
Buying a home in Israel while your income is abroad, or you recently made Aliyah and want a place of your own? It is absolutely possible. Israeli banks do lend to foreign residents and new immigrants – but the rules are different, and knowing them in advance saves time, money and frustration.
Foreign residents – what you need to know
Financing limit – for foreign residents, banks usually finance up to 50% of the property value, so you will need more equity.
Proof of foreign income – payslips, tax returns and bank statements from the country where you work, sometimes with translations and certifications.
Foreign credit history – some banks will ask for a credit report from your country of residence.
Currency exposure – you earn in foreign currency and repay in shekels. A foreign-currency-linked track is possible, but you should understand the risk.
New olim – advantages worth using
Financing like an Israeli resident – a new oleh is considered a resident, so for a single home you can reach up to 75% financing.
Olim eligibility – new immigrants are usually entitled to a loan on special terms through the Ministry of Construction and Housing. Check your eligibility before approaching the bank.
Short financial history in Israel – a common challenge. Stable income, a well-managed account and documents from abroad help the bank complete the picture.
5 steps before you start
Open an Israeli bank account and keep it well managed.
Collect income documents from the last two years.
Check how much equity you have and how it will be transferred to Israel.
Get a mortgage pre-approval before you sign on a property.
Compare banks – policies toward foreign residents and olim vary widely from bank to bank.
Why work with an advisor?
A mortgage process from abroad involves an unfamiliar language, documents and bureaucracy. We guide you step by step and manage the entire process with the banks – even while you are still abroad. More information on our mortgage for foreign residents page.
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This article is for general information only and does not constitute personal advice.