Guide: Buying a home in Tel Aviv
Read through our ultimate guide on buying a home in Israel below.
Fees & Expenses
When buying a property in Israel it is important to understand that, unlike in some other countries, in Israel the purchase price of the property is 100% paid to the seller; all other additional fees have to be added on-top of that purchase price. Some of the fees are a direct correlation to the purchase price where others are fixed and depend on the service provider.
Tax, Agent & Lawyer Fees
Purchase Tax – There are different rates which are progressive. In order to understand the complexities involved as to purchase tax, please go to our Tax Calculator Page.
Agent Fees is 2% of purchase price + VAT; the fee goes directly to your agent representing you in the process. The other agent represented by the owner is paid separately by the owner.
Lawyer Fees depends on your choice of attorney. The fee can be anything between 0.5%-2% of purchase price + VAT. The price depends on the size of the firm and the type and duration of the deal – construction, 2nd hand, land, future rights. It is highly suggested to ask your real estate agent to recommend the correct lawyer for your deal.
Not always necessary when you work with a professional real estate agent, but if you do need one, it should cost between 6K to 12K NIS.
Again, not always necessary, but sometimes extremely necessary. Home inspection should cost between 8K to 16K NIS depending on the size of the property.
When you use the bank’s mortgage consultants its “free” of charge. But remember the bank’s consultants work for the bank. We suggest a private mortgage consultant which looks out for you needs and personal benefits. This should cost between 8K to 15K NIS, but will likely save you a lot more than that on your mortgage.
Kitchen Appliances & Light Fixtures
Your questions answered
*Answers are according to 2021’s updated rules and regulations
How are mortgages in Israel different from mortgages in the USA?
How much can I borrow?
How is my residency determined?
What is the average loan period on a mortgage in Israel?
Do I qualify for a mortgage on foreign-based income?
What are the mortgage rates in Israel?
-A foreign resident has the advantage of taking the entire loan on a variable rate, which generally is lower than fixed-rate mortgages.
-An Israeli resident must take a minimum of a third of the loan on a fixed rate and as of January 17th, 2021 are permitted to take a maximum of two-thirds of the loan on a variable rate.
Interest rates are from 1.0% – 3% on the Euro, Dollar, and NIS adjustable
Fixed NIS rates are from 2.5% – 4.5% depending on the term and size of the loan
Are there mortgage products available other than in Shekel?
Can one use a foreign co-borrower?
Do I need to be in Israel to obtain a mortgage?
How long does it take to get approved for a mortgage?
What documentation is required of the borrowers to submit for a mortgage?
-For foreigners -Last 2 years of personal tax returns. For Israeli’s, if self-employed last year’s personal tax return and an accountant’s letter estimating Net income for the current year. If employed last three months of payslips
-Last 3 months of personal checking account (both foreign and Israeli accounts)
-For U.S. individuals full credit report and score
What do I need to know about life insurance in regards to mortgages?
When buying a property in Israel, you will have to pay a purchase tax to the government with no exemptions. There are different rates which are progressive, and you must take this extra cost in consideration when planning your budget of buying a property in Israel.
*Oleh benefits are applicable to new Olim within the first seven years of making Aliyah. Olim have a choice of using this or to pay according to the Israeli 1st apartment tax brackets.
Purpose of Purchase
Who is this property for? Who will use it? Newlyweds, family with kids or retired couple?
Number of Bathrooms
Goal Month to Purchase
Is there a specific date that money is released from inheritance or from selling a property? Is there a goal to purchase so other adjustments can be made before move-in date?
It’s best to decide on a specific neighborhood, and easiest to mark on a map a border line with streets. First research the neighborhood to make sure it suits your needs: schools, parks, medical centers, even dog parks.
Number of Bedrooms
Goal Date to Move in By
Goal Month to Purchase
We’re changing real estate service standards in Tel Aviv and have your back with the entire purchasing process. Let us know what is important to you in a home or property today
We’re here for you
Purchasing a home in Israel is one of the most important decisions you’ll make, and the right advice and guidance is paramount. By working with us, you’ll understand every step of the purchase process in your language, so there’s no room for translation errors or dishonest dealings.
We will listen to your needs, find you the perfect home, and make sure that you make an educated and informed decision. Once you choose a property, we will represent your interests vociferously throughout the purchase process, negotiating the best possible purchase price and payment plan. We will also connect you to our network of lawyers, mortgage consultants, currency transfer, architects, and more to help you make your dream home a reality.