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Property

Israel — Property: Mortgage Availability

Bank of Israel Directive 329 caps housing loans at 75% of value for a sole dwelling, 70% for a replacement dwelling and 50% for an investment dwelling.

VerifiedGovernment / official sourceBank of Israel — Directive 329, Limitations on issuing housing loansLast reviewed: 2026-10-23

Why this matters

Relocating individuals should care about the mortgage-availability topic as it affects their ability to purchase or refinance a property in Israel.

Key facts

  • A bank may not approve a loan above 75% LTV for a sole dwelling, 70% for a replacement dwelling or 50% for an investment dwelling.
  • Banks must count earlier loans secured on the same dwelling towards the ceilings (total LTV).
  • For reduced-price homes banks may value the dwelling on an assessor appraisal at an LTV of 75%, with the value capped at NIS 1.8 million.
  • A later circular lets banks lend up to 70% LTV on a home-secured loan not used to buy property, with the portion above 50% capped at NIS 200,000; check the current directive.
  • The LTV limits took effect in October 2012 for loans approved from 1 November 2012.

Steps

  1. Application Process for Foreign Nationals — The exact steps for mortgage application in Israel for foreign nationals are unknown, and it is recommended to consult with a local real estate expert or financial advisor for guidance.

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