How has Covid19 affected Mortgages in Israel?

Due to the #Coronavirus epidemic there have been a few changes in regard to mortgage financing in Israel which you may be able to take advantage of:

1. Increased LTV for Cash-Out: Up to 70% Cash-out for foreign or Israeli residents

– Due to the Covid-19 epidemic Bank of Israel has eased regulations by increasing cash-out limits from 50% to 70% LTV. For those looking to take cash out of their properties in Israel this is an opportune time. Funds may be used for any purpose except for the purpose of buying a property in Israel.

2. New mortgage product: Choose your monthly payment

This mortgage product allows you to choose how much you want to pay every month for the first half of the loan term (i.e. on a 30 year term mortgage the borrower can decide how much to pay every month for the first 15 years).

– You do not have to take the entire mortgage on this product i.e. you can take half of the mortgage as a regular mortgage and half on this new product

– This new product is only allowed when taking fixed rates in shekels (either linked to inflation or non-linked to inflation)

3. Reduced Interest rates

Interest rates in US dollars have come down significantly for both purchase and refinance – please see below for current rates:

3 month adjustable in US Dollars (up to 30 year term) – 2.1% – 2.5%

5 year fixed in US Dollars (up to 25 year term) – 2.7% – 2.9%

* For loans over 5MM NIS or for a cash-out refinance add 0.5% – 1%

**The rates mentioned above are subject to change based on the credit profile of the borrowers.

If you would like to set up a call to discuss your mortgage options please feel free to contact me at:


Israel: +972-543-971-901


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