Common Question 1

Contributor: Ezra Sharfman, Former Banker & CEO of Israeli Golden Assets 

🏠 How Much Financing Can a New Oleh or a Foreign Buyer Get in Israel?

One of the most common questions we receive is: 
How much of the property can I finance?

As a general rule:

🇮🇱 New Olim may be eligible for financing of up to 75% of the property’s value.

🌎 Foreign residents can generally receive financing of up to 50% of the property’s value.

But what if you are currently living abroad and planning to make Aliyah in the future?

In certain cases, you may still be able to qualify for financing of up to 75%, based on your intention to make Aliyah.

However, the timing can make a big difference, especially depending on the type of property you are purchasing.

If you are purchasing a completed or second-hand property, the bank may require you to make Aliyah within approximately one to two years, depending on the bank and your specific approval.

If you are purchasing a new construction property “on paper”, there may be significantly more flexibility. In some cases, Aliyah can take place within approximately one year after construction is completed.

That means that if you are purchasing a project that will only be completed in four or five years, your actual Aliyah could potentially take place five or even six years from today.

This can make a major difference in how much equity you need to purchase the property.

⚠️ This is why financing should be discussed before signing a purchase contract - not afterward.

Before committing to a property, it is important to speak with an experienced mortgage advisor and obtain a mortgage pre-approval for the amount you will need.

This allows you to understand how much financing you can realistically receive, how much equity you need, and how your future Aliyah plans may affect the structure of your mortgage.

Know your financing before you sign.

To learn more about our contributor, see Ezra's link here:  https://olimfavorites.com/listing/israel-real-estate-mortgage-services/