One of the most common questions from diaspora buyers is: can I get an Israeli mortgage if I don't live in Israel? The answer is yes — but the rules are different from mortgages for Israeli residents. Here's everything you need to know.
What is a mashkanta?
A mashkanta (משכנתא) is an Israeli mortgage — a loan from an Israeli bank secured against the property you're buying. Like mortgages elsewhere, it is repaid in monthly installments over a fixed term (typically 15–30 years).
Can foreign nationals get a mashkanta?
Yes. Israeli banks are legally permitted to offer mortgages to non-residents and foreign nationals. In practice, the main Israeli banks — Bank Hapoalim, Bank Leumi, Mizrahi Tefahot, and Discount Bank — all have dedicated foreign buyer mortgage desks.
The key differences for non-residents:
| Israeli resident | Non-resident / foreign buyer | |
|---|---|---|
| Max loan-to-value (LTV) | Up to 75% | Up to 50% |
| Interest rates | Standard | Slightly higher |
| Document requirements | Standard | More extensive |
| Currency | NIS | NIS (or sometimes USD/EUR linked) |
How much can I borrow?
As a foreign buyer, Israeli banks will typically lend up to 50% of the property's assessed value (not the purchase price — the bank's own appraiser sets the value). This means:
- ·Property value: $1,000,000
- ·Maximum mashkanta: $500,000
- ·Minimum cash you need: $500,000 + all transaction costs
Important: The 50% limit applies to the bank's appraised value. If the bank appraises below your purchase price, your loan amount is capped at 50% of the lower appraised figure.
What documents do you need?
Israeli banks require extensive documentation from foreign buyers. Prepare:
Personal documents:
- ·Passport copies
- ·Proof of address in your home country
- ·Marriage certificate (if applicable)
Income and financial documents:
- ·Last 3 years of tax returns (US: 1040; UK: SA302)
- ·Last 3 months of pay stubs or proof of self-employment income
- ·Last 3 months of bank statements
- ·Proof of assets / savings (for the down payment and reserves)
Property documents:
- ·Signed purchase contract
- ·Property appraisal (the bank arranges this)
All foreign documents must typically be translated into Hebrew by a certified translator and apostilled.
The mashkanta application process
- Pre-approval — Get a preliminary approval (ishur ekroni) from the bank before signing a purchase contract. This confirms how much you can borrow.
- Choose your mortgage track — Israeli mortgages can be fixed, variable, CPI-linked, or a combination. A mortgage advisor (yoetz mashkanta) is worth hiring.
- Property appraisal — The bank sends an appraiser to value the property.
- Final approval — Once the bank approves, you receive a formal commitment letter.
- Signing and drawdown — The mortgage is drawn down in stages aligned with your payment schedule.
Should I use a mortgage advisor?
Yes. Israeli mortgages are more complex than US or UK mortgages because they combine multiple "tracks" (fixed, variable, CPI-linked) into a single loan. A licensed Israeli mortgage advisor (yoetz mashkanta) typically charges a flat fee of ₪3,000–₪6,000 and can save you significantly more than that through better track selection and bank negotiation.
Can I get a mortgage in USD instead of NIS?
Some Israeli banks offer dollar-linked or euro-linked mortgages for foreign buyers, which can reduce currency risk if your income is in dollars or euros. Ask your mortgage advisor about this option — it is not available at every bank or for every property.
Frequently asked questions
Do I need an Israeli bank account to get a mashkanta?
Yes. You'll need to open an Israeli bank account, and your mortgage is typically issued through the same bank. Opening a non-resident account takes 4–8 weeks — start this process as early as possible.
Can I get pre-approved before I find a property?
Yes, and it's highly recommended. A pre-approval letter (ishur ekroni) strengthens your offer when negotiating with a seller and clarifies your budget.
What if I'm self-employed?
Self-employed buyers need to provide 3 years of certified tax returns and a CPA letter confirming income. Banks are more conservative with self-employed applicants — expect more scrutiny and potentially a lower approved amount.
Is there a minimum income requirement?
Banks don't publish a strict minimum, but the general rule is that your monthly mortgage payment should not exceed 30–35% of your net monthly income.
What happens to my mashkanta if I make aliyah?
If you later make aliyah, you may be eligible to restructure your mortgage on more favorable resident terms. Consult with your bank and a mortgage advisor when planning your aliyah.
This guide is for informational purposes. Mortgage terms change. Always get current quotes directly from Israeli banks or through a licensed mortgage advisor.