Mortgage (Mashkanta) Comparison

Both Daniel and Hannah's documents are needed if applying jointly

Factor in arnona, vaad bayit, insurance, and child expenses for Ezra

Israeli banks cap LTV at 75% for a primary residence; 70% for olim's first purchase may differ

Request your free annual report at boi.org.il

Israeli law requires at least one-third of the mortgage in a fixed-rate track

Currently attractive when rates are expected to drop; risky if rates rise

Higher initial rate but provides certainty; good for budgeting

Can be risky in high-inflation environments; your actual debt grows with CPI

Lower initial rate but unpredictable long-term cost

Each bank will provide a detailed offer (hatzaat mashkanta) valid for a limited period

Calculate total interest paid over the full loan term using the bank's amortization schedule

Fixed-rate tracks have higher penalties; variable and Prime tracks have lower or no penalties

Banks expect negotiation; showing a better offer from a competitor often triggers a match or improvement

These fees add up to several thousand NIS and are often negotiable

Some banks offer preferential rates or reduced fees for olim within certain timeframes

Olim receive a significantly higher tax-free threshold on their first property for up to 7 years after aliyah

Foreign income may be discounted by 20-30% for qualification purposes

Include: track mix, rates, monthly payments, total cost, penalties, and fees

Advisors typically charge 3,000-8,000 NIS but can save much more through optimized track selection

Approval letters typically expire within 30-45 days; act promptly