How much of your home’s value will an Israeli bank let you borrow as a mortgage?

When building a budget to purchase your home, there are a lot of calculations you need to make in order to decide how much you can spend. One of those factors is how much will a traditional bank lend you as a mortgage secured against your property.

Four factors that determine your LTV

There are four factors that go into a bank’s calculation of how much money you can borrow as a mortgage against your property:

Israeli residency and citizenship

  1. Israeli residency: If you are an Israeli resident, you are entitled to borrow up to 75% of the value of your home.
  2. Israeli citizenship: If you are an Israeli citizen, you are entitled to borrow up to 75% of the value of your home.

If you are neither an Israeli resident or citizen, you are entitled to borrow up to 50% of the value of your home.

Home status

  1. Whether this will be your only home in Israel at this moment: If the home you purchase is your only home in Israel, you are entitled to borrow up to 75% of the value of your home.
  2. If it’s not your only home in Israel at the moment, do you declare you will sell your other home within 18 months

If you currently own a home and will be switching to a new home, you’re entitled to borrow up to 50% of the value of your home.

If you currently own a home or homes and this will be your second or subsequent home, then you’re entitled to borrow up to 50% of the value of your home.

Image by Mohamed Hassan from Pixabay

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