Understanding Mortgage Financing Limits for Foreign Clients in Israel!
As a foreign client, here’s what you need to know about financing limits and payment guidelines for your mortgage in Israel:
💰 Maximum Financing
Foreign clients can receive up to 50% financing for a property purchase.
For second-hand homes, it’s 50% of the lower amount between the purchase contract and the property’s appraisal value.
📊 Monthly Payment Cap
To ensure your mortgage is manageable, the monthly payment can’t exceed 40% of your net income.
📈 Example Calculation
Let’s say your yearly income is $100K, and the USD/ILS exchange rate is 3.7. That would give you an income of roughly 370,000 ILS. This means your maximum monthly mortgage payment would be around 12,000 ILS.
💼 Other Financing Considerations
Be aware that banks may assess your financial stability more stringently as a foreign client. If you have limited local credit history, you might need to show more documentation or offer a higher down payment.
Stay Tuned for More Tips!
If you have questions or need more guidance, feel free to reach out—I’m here to support you on your mortgage journey in Israel!
