Property affordability
How much mortgage can you afford in Israel?
Mortgage affordability is constrained by both your available equity and the payment your household can sustain. Banks also apply underwriting, documentation and property-valuation requirements.
Check both deposit and payment
The lower of the two resulting property budgets is usually the more useful planning ceiling.
Maximum loan-to-value categories
| Purchase type | Maximum LTV stated by Bank of Israel | Minimum equity before other costs |
|---|---|---|
| Single dwelling | 75% | 25% |
| Replacement dwelling | 70% | 30% |
| Investment dwelling | 50% | 50% |
The Bank of Israel also describes loans with payment-to-income above 40% as high risk and notes that many mortgages fall around 30%–40%. That is not a promise of approval, and households may choose a lower personal limit.
Costs beyond the down payment
- Purchase tax
- Legal fees
- Appraisal and registration costs
- Brokerage, if applicable
- Renovation, furnishing and moving
- Exchange-rate and transfer costs for overseas funds
Monthly payment calculatorTest interest rate, term and remaining balance.Purchase-tax calculatorCompare sole-home, eligible new-oleh and additional-home scenarios.Rent vs buyCompare cash flow and ending net wealth assumptions.
Official source: Bank of Israel mortgage transparency guide.
Guide informationBanking framework · Checked July 17, 2026
LTV sourceBank of Israel
AffordabilityHousehold-specific
Not includedBank underwriting decision
Use caseInitial planning