How has Covid19 affected Mortgages in Israel?

by | Jul 23, 2021 | Israel Real Estate

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


First Israel is a boutique mortgage brokerage with offices in Jerusalem and Tel-Aviv. With over 10 years of experience, First Israel’s team combines an in-depth knowledge of the industry and key partnerships within Israel’s banking community to assist clients in getting the right loans at the lowest rates. As independent mortgage brokers, we work exclusively for the benefit of our clients. Our only agenda is to help them secure the best mortgage possible at the best price. First Israel prides itself in premium customer service and our track record of making the mortgage process as hassle free as possible.