Can Foreigners Get a Mortgage in Israel? What You Need to Know in 2025
Buying property in Israel is an exciting step—but financing it? That’s where many foreign buyers feel unsure.
Can foreigners get a mortgage in Israel?
The answer is yes—but there are some unique rules, requirements, and processes you should know before applying.
In this guide, we break down everything a non-resident needs to know about getting a mortgage in Israel in 2025—including loan limits, documentation, and how Bayit in Israel can help you every step of the way.
🏦 Can Foreigners Get a Mortgage in Israel?
Yes, Israeli banks do offer mortgages to foreign buyers, including:
- Non-Israeli citizens
- Israeli citizens living abroad
- Foreign passport holders with no residency
However, the terms are slightly different compared to Israeli residents. Foreigners are usually considered higher risk, which can affect how much you can borrow and the process required to get approved.
💸 How Much Can You Borrow?
Most banks allow foreign buyers to borrow up to 50% of the property value (Loan-to-Value ratio, or LTV). In some rare cases, Israeli citizens living abroad may qualify for more—up to 70%.
💡 Example:
- Property Price: ₪2,000,000
- Max Loan (50% LTV): ₪1,000,000
- Required Down Payment: ₪1,000,000
Mortgages are typically offered in Israeli Shekels (NIS), and payments must come from an Israeli bank account.
🧾 What Documents Do You Need?
To apply for a mortgage as a non-resident, you’ll need:
- ✅ Copy of your passport (or Israeli ID if applicable)
- ✅ Proof of income (payslips, employment letter, or tax return)
- ✅ Bank statements (3–6 months)
- ✅ Credit report (from your home country)
- ✅ Signed purchase agreement
- ✅ Israeli bank account
- ✅ Power of attorney if you’re not present in Israel
Bayit in Israel connects you with trusted mortgage brokers who know how to work with foreign buyers and simplify this paperwork.
🕐 How Long Does It Take?
The process typically takes 2–4 weeks, depending on:
- How fast you can gather documents
- The complexity of the loan
- Appraisal timeline (the bank will inspect the property)
Pro tip: Start the mortgage process before signing a purchase agreement. This will save you stress and delays later.
📉 What Are the Interest Rates for Foreigners?
Interest rates vary depending on:
- Bank policies
- Shekel-based or foreign currency-based loans
- Fixed vs. variable options
- Your credit profile and income documentation
As of mid-2025, typical foreign buyer mortgage rates range from 4.5%–6.5%, though this may shift with Bank of Israel policy.
🌍 Currency Transfers & Tax Notes
- Mortgages must be paid from an Israeli bank account in Shekels
- You’ll need to transfer funds from abroad for your down payment
- Be aware of foreign exchange fees
- You may also face double taxation issues if not structured properly—always consult a tax advisor
🧠 Why Use a Local Expert?
Even fluent Hebrew speakers can struggle with the Israeli mortgage process. For foreigners, it’s even more challenging:
- Bank terms can change frequently
- Documentation requirements vary by bank
- You may need to sign in person or appoint a local Power of Attorney
At Bayit in Israel, we take care of everything:
✔️ Introduce you to mortgage-friendly banks
✔️ Help open your Israeli bank account
✔️ Guide you through the mortgage application
✔️ Coordinate between your lawyer and lender
✔️ Handle paperwork even if you’re not in Israel
✅ Am I Eligible?
Most foreigners with steady income and good credit are eligible—but each case is different.
If you’re not sure whether you qualify, reach out. We’ll evaluate your profile and match you with a bank that works with clients like you.
🗝️ Ready to Take the Next Step?
With the right guidance, financing a home in Israel as a foreigner is absolutely possible.
Bayit in Israel provides full A-to-Z property buying services, including mortgage assistance, legal support, property search, and after-sale services.
