Why navigating Israeli home loans requires expert help
Want to buy property in Israel? The mortgage math will surprise you
Whether you're making aliyah, buying a vacation home, or investing in Israel's growing property market, understanding these unique mortgage rules could save you significant money - and stress - in your property journey.
Think getting a mortgage in your home country is complicated? Welcome to Israeli property financing, where the rules might just upend your entire home-buying budget.
The Numbers That Matter
Let's break down what makes Israeli mortgages unique:
- Israeli citizens can borrow up to 75% of a property's value
- Foreign buyers face a strict 50% lending limit
- Monthly payments capped at 35-40% of your income
- Closing costs: 5-6% for Israelis, 12-13% for foreigners
That means on a 2 million shekel apartment, a foreign buyer needs:
- 1 million shekel down payment (50%)
- Up to 260,000 shekels in closing costs (13%)
- Mandatory life and property insurance
- Proof of income that satisfies strict Israeli banking rules
"These numbers surprise most foreign buyers," says Gershon Sheffield, a mortgage broker specializing in Israeli property purchases. "Many come prepared for a 20-30% down payment like in their home countries. The reality here is very different."
Getting Expert Help
Sheffield, who helps buyers navigate these complexities, emphasizes the importance of early planning. His services include:
- Tailored mortgage solutions for both buyers and investors
- Rate negotiation with Israeli banks
- Managing the complex application process
Ready to explore your Israeli mortgage options?
Contact Gershon Sheffield:
- WhatsApp: +972-52-6050004
- US: (732) 813-1593
- Email: gershon@mortgageisrael.com
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