How much can a foreign resident borrow?
Bank of Israel rules limit financing for foreign residents to up to 50% of the property price. In practice that means you bring at least half of the price from your own funds, plus the costs of the purchase. The loan term can be up to 30 years, and the monthly repayment has to fit the income you can document.
| Foreign resident | Israeli resident, first home | |
|---|---|---|
| Maximum financing | Up to 50% | Up to 75% |
| Income checked | Foreign income, fully documented | Usually Israeli income |
| Purchase tax | Usually the higher rates | Reduced rates on a first home |
What Israeli banks look at
Every bank has its own policy for foreign residents. They typically look at:
- Documented income — tax returns (for US buyers, Form 1040 and K-1s), a CPA letter, or financial statements for the self-employed.
- Currency — income in dollars, pounds or euros against a loan in shekels. Some banks count only part of foreign-currency income, or offer loans linked to a foreign currency.
- Assets and equity — where the down payment comes from, and proof that it is already available.
- Credit history — a credit report from your country and details of existing loans.
- Identity — your passport (plus driver’s license); the bank checks it is valid through the process.
Some banks have dedicated departments for foreign residents and are more flexible; others are strict. Applying to the right banks from the start saves weeks.
Costs to plan for beyond the down payment
- Purchase tax (מס רכישה) — foreign residents usually pay the higher rates that apply to additional property.
- Lawyer — usually a percentage of the price.
- Appraisal, bank fees and insurance — the bank requires life insurance on the borrowers and property insurance.
- Currency conversion — moving large sums into shekels; timing and the conversion channel both matter.
Handling it from abroad
Most of the work can be done remotely: collecting documents, comparing offers from the banks and getting approval. The one step to start early is the power of attorney the bank requires: for foreign residents it must be signed before a notary, with an apostille when signed abroad — and that can take weeks. Also allow for holidays in your income country (for example Thanksgiving to New Year in the US), when your accountant and bank abroad are slow to respond.
The process, step by step
- First conversation — your budget, income, currency and timeline.
- Documents — we tell you exactly what each bank needs, so you collect it once.
- Approval in principle (אישור עקרוני) from the banks that suit your profile.
- Purchase contract — your lawyer aligns the payment schedule with the mortgage.
- Offers and negotiation — the rate and the mix of tracks.
- Appraisal, insurance, signing and payout.
How Natan helps foreign buyers
Natan works in English and Hebrew with buyers from the US, Canada and the UK. He knows which Israeli banks work well with foreign income, handles the conversations with the banks for you, and keeps the process moving while you are abroad.
