Real Estate Financing in Israel for Non-Residents

Is It Possible to Get a Loan in Israel Without Residency?

Yes, Israeli banks do grant mortgages to non-residents. But the conditions are significantly stricter than for residents.

Key Conditions

Minimum Down Payment

For an Israeli resident buying their first home: 25% minimum.

For a non-resident: 50% minimum of the property price.

In practice, on a 3,000,000 ILS apartment, you must bring 1,500,000 ILS (approximately $400,000) in own funds.

Interest Rate

Israeli rates vary according to the Bank of Israel's policy rate. In 2026, they range between 4.5% and 6.5% depending on profile and duration. There are fixed-rate loans (מסלול קבוע) and inflation-linked loans (מסלול צמוד מדד).

Warning: Inflation-linked loans may seem cheaper but carry the risk of increasing the capital owed if inflation rises.

Required Documents

Israeli banks require:

• Valid passport
• Bank statements for the last 12 months
• Income proof (pay slips, tax returns)
• Proof that own funds have existed for at least 90 days

Which Banks to Work With?

Main Israeli banks that work with non-residents:

• Bank Hapoalim — the largest, international presence
• Bank Leumi — US and UK offices, used to English-speaking clients
• Bank Discount — less well-known but often more flexible

There are also brokers specializing in loans for the Jewish diaspora who can negotiate better conditions.

Alternatives to an Israeli Loan

Financing from Your Home Country

Some banks in your home country accept financing a property abroad using a local property as collateral. If you have equity in real estate at home, this option may be less constraining.

Cash Purchase

Many foreign buyers (particularly in the diaspora) buy entirely in cash. This considerably simplifies the transaction and strengthens your negotiating position with the seller.

The Ideal Financing Plan

1. Define your total budget (price + ancillary costs)

2. Calculate your available down payment

3. Contact 2-3 Israeli banks before searching for a property (not the other way around)

4. Obtain an agreement in principle before signing

5. Sign the preliminary contract with a financing contingency clause

RelayState can connect you with brokers specializing in non-resident financing.