Non-resident mortgage in Israel: banks and brokers for buyers abroad

Who actually offers a non-resident mortgage in Israel

Only Israeli banks grant mortgages secured on Israeli homes, so a non-resident mortgage in Israel always comes from a local lender, and every one of them treats a buyer living abroad as a foreign resident. In practice the choice is between approaching a bank directly and using an English-speaking broker who submits the file to several banks.

Banks versus independent mortgage brokers

A bank offers one set of tracks and its own pricing, while a broker collects competing offers and negotiates margins on each track. Brokers charge their own fee, which is separate from bank charges, so foreign buyers should compare the saving they promise against that fee before signing a mandate.

Mizrahi-Tefahot and the other large banks

Mizrahi-Tefahot publishes English questions and answers on Israeli mortgages aimed mainly at new immigrants, and Leumi runs an English minisite for olim. Hapoalim, Discount and First International also lend to foreign residents, usually through branches with staff used to overseas clients, so asking which branch handles foreign residents saves time.

Brokers that specialise in diaspora buyers

Several firms built their business around English and French speakers buying from North America, Europe and South Africa. Reiten, First Israel Mortgages and Mortgage Israel publish guides for foreign residents and arrange approvals remotely, collecting documents by email and coordinating signatures at Israeli consulates or during a short visit.

Comparing the main routes to an Israeli mortgage

The table summarises how the organisations found for this guide position themselves. It reflects their public pages in October 2026, not personal offers. Rates, fees and eligibility change frequently, and each bank still decides case by case on income, age, property type and currency.

What half financing means in shekels

Take a Jerusalem apartment priced at 3,000,000 shekels. With the 50% ceiling on a mortgage for foreign residents, the bank lends at most 1,500,000. The buyer must also pay purchase tax, at 8% on the first band for an additional home, roughly 240,000 shekels here, plus lawyer and agent fees.

How banks count income earned abroad

Lenders offering an Israel mortgage for non-residents convert foreign salary at a conservative rate and may discount bonuses, freelance income or rental earnings. Directive 329 of the Bank of Israel caps the repayment-to-income ratio at 50%, and banks are stricter below that. Self-employed applicants usually need two years of certified accounts and tax returns.

Dollar and euro tracks for overseas earners

Brokers serving diaspora buyers often propose a mix where part of the loan is linked to the currency in which the borrower is paid. That reduces mismatch on that slice, but the rest stays in shekels, and the regulatory minimum fixed-rate share still applies to the whole mortgage.

Documents a mortgage for foreign residents needs

Banks expect a complete file for a non-resident mortgage in Israel before issuing a binding approval. Missing paperwork from abroad is the most common cause of delay, so applicants should gather certified and, where requested, translated copies before the purchase contract is negotiated rather than after the developer sets payment dates.

• Passport and, for Israeli citizens living abroad, the teudat zehut number.
• Six recent payslips and employment letter, or two years of tax returns for the self-employed.
• Six months of bank statements showing salary and the source of the equity.
• Credit report from the country of residence where one exists.
• Purchase contract or draft, with the Land Registry extract and appraisal.

Fees charged by banks and brokers

Banks charge a file-opening fee and an appraisal fee, and they require life and structure insurance assigned to them for the full term. Broker fees are agreed separately, sometimes as a flat amount and sometimes as a percentage of the loan, so request the basis in writing.

How long the process takes from abroad

An approval in principle can come within one to two weeks once documents are complete. Final approval follows the appraisal and lawyer checks, and drawdown on a new-build project is staged against construction milestones. Allow at least six to eight weeks for a resale apartment purchased remotely.

Arranging the loan step by step

The order below suits a buyer abroad who wants a bank approval before committing to a seller. A power of attorney signed at an Israeli consulate allows a lawyer or relative to complete formalities, which avoids repeated flights during the closing period.

1. Calculate the cash needed: at least half the price plus purchase tax and fees.
2. Ask two or three banks, or one broker, for an approval in principle in writing.
3. Instruct an Israeli real-estate lawyer to check title and seller obligations.
4. Sign the purchase contract with dates that match the bank timetable.
5. Open the foreign-resident account at the lending bank and transfer the equity.
6. Complete appraisal, insurance and consular power of attorney.
7. Sign the mortgage and register the lien before the bank releases funds.

Red flags when arranging a non-resident mortgage in Israel remotely

Buyers abroad depend on intermediaries they rarely meet, which creates room for error and fraud. The warning signs below are drawn from situations that brokers and banks describe repeatedly when they deal with diaspora purchasers who have not yet visited the branch.

• A promise of 70% or 75% financing for a buyer who remains a foreign resident.
• A so-called broker who asks for an approval fee by wire before naming the bank that will lend.
• Pressure to sign a developer contract before the bank has appraised the property.
• Payment instructions sent by email that change the lawyer's or developer's account details.
• A track mix chosen only for the lowest first payment, ignoring CPI linkage.

Verifying a bank or a broker

Banks licensed in Israel are listed by the Bank of Israel, whose Banking Supervision Department also handles complaints from customers abroad. For a broker, ask for its registered company number, the name of the responsible adviser and a written mandate stating exactly which services the fee covers.

Questions foreign buyers ask about Israeli mortgages

These answers summarise how banks and brokers approached foreign-resident loans in 2026. They are general information, not an offer, and each lender applies its own credit policy within the Bank of Israel limits.

Can a foreign resident borrow more than half the price?

Not under the standard rules for buyers who remain abroad. The Bank of Israel ceiling for foreign residents is 50% of the value. Someone who makes aliyah and becomes an Israeli resident may then qualify for the higher limits available to first-home buyers.

Is a broker necessary for a foreign resident?

No. Any foreign resident may approach banks directly, and Mizrahi-Tefahot and Leumi offer information in English. A broker mainly saves time and can obtain sharper margins by putting banks in competition, which matters most on larger loans with long terms.

What is the maximum term of the loan?

Directive 329 limits housing loans to a maximum term of 30 years. Banks also look at the borrower's age at the final payment and may shorten the term for older applicants, which raises the monthly instalment and the income required.

Can the mortgage be repaid early?

Yes, but early repayment of fixed-rate tracks may trigger a fee that compensates the bank if market rates have fallen since signing. Prime-linked tracks are generally cheaper to repay early, which is one reason foreign residents often keep part of the loan on prime.

By Nabil Frik · Updated 28 October 2026