Housing, Renting, Real Estate & Mortgages in Israel - An Overview
Welcome to Israel, your new home.
Contrary to the current economic situation, the price of real estate in Israel is rising. While some new-immigrants have ready-cash to buy property, the majority will require a mortgage. Real-estate in Israel is relatively expensive and consequently the demand for mortgages is relatively high - mortgages however, are not hard to obtain.
Obtaining a Mortgage
There are various types of mortgages in Israel: linked, unlinked etc. Details of mortgages and loans can be obtained by commercial banks who offer mortgages and from specialized mortgage banks. Some years back housing prices were quoted in US dollars but now the law insists that they be quoted in shekels. You will be paying your mortgage in Shekels. Your mortgage bank will do all the necessary calculations and conversions to determine the final price.
Some banks that offer mortgages in Israel:
- Adanim Mortgage Bank
- Bank Mishkan - Hapoalim Mortgage Bank
- Discount Mortgage Bank
- First International Mortgage Bank
- Leumi Mortgage Bank
Mortgage Assistance to Immigrants
Currently, new immigrants are entitled to rental and mortgage assistance as part of their “Aliyah Benefits Package” as outlined by the Jewish Agency (Sochnut):
- Nominal rental assistance for 4 years, starting from the second year from date of Aliyah.
- Mortgages at special terms (approximately $25,000 per family) for 10 years.
- Discount on purchase tax when buying an apartment, approximately $4,000, for up to 7 years from date of aliyah.
The amount of assistance offered by the government to new immigrants varies according to the location and the socioeconomic grading of the applicants in accordance with the criteria of the Ministry of Construction and Housing. Exact details and a breakdown of your entitlement are available from The Ministry of Immigrant Absorption or your Aliyah office. Always verify with them for any changes and updates.
When taking out your mortgage in Israel, it is recommended not to exceed a monthly repayment of more than 25 percent of your total monthly income.
A typical Israeli family apartment (3 to 4 bedrooms) generally measures between 90 to 120 sq. meters. To help you plan your housing requirements and aliyah shipment, we have included a typical floor plan of a 3 bedroom apartment in an Israeli hi-rise apartment block.
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