Mortgage (Mashkanta) for non-residents

Conditions, 2026 rates, partner banks and practical tips to finance your purchase.

Can a foreign resident get a mortgage in Israel? Yes: Israeli banks grant mashkantot to non-residents, up to 50% of the property price (75% for residents), over 20 to 30 years. The file is prepared entirely remotely through a broker, and it is recommended to obtain a pre-approval (ishur ekroni) before signing a purchase agreement.

What is the mashkanta?

The mashkanta (משכנתא) is the Israeli mortgage. Non-residents can borrow up to 50% of the property price from major Israeli banks: Bank Leumi, Bank Hapoalim, Mizrahi-Tefahot and Discount Bank. The process differs from a US or UK mortgage but is perfectly accessible to foreigners.

Conditions for non-residents in 2026

• Maximum LTV: 50% for non-residents (vs 75% for residents) • Minimum down payment: 50% of the property price • Interest rates: 4-6% by type (fixed, variable, prime-linked) • Maximum term: 25-30 years • Age limit: Loan must be repaid by age 75

Simulate your mashkanta Calculate your monthly payments and borrowing capacity with our financing simulator.

Preparing your application

Israeli banks require: proof of income — last 3 payslips + tax returns (US W-2/1099, UK P60/SA302 or equivalent), bank statements for the last 6 months, ID and passport, and the preliminary sale agreement. A real estate lawyer will assist you in preparing the application.

Different rate types

In Israel, the mashkanta typically comprises several 'tranches' with different rates. Main options are fixed rate (stable but higher), variable rate linked to prime (lower but fluctuating), and inflation-indexed rate (Madad). The optimal strategy often combines 2-3 tranches to balance risk and cost.

Alternative: financing from the US, UK or Canada

Some investors borrow against equity in a property they already own at home — a US home-equity loan or HELOC, a UK remortgage or further advance. This can offer higher LTV (70-80%) but exposes you to USD/ILS or GBP/ILS exchange risk and to home-country tax reporting (mortgage interest deductibility rules differ). Compare both routes in our financing simulator and confirm with a cross-border tax adviser.

Mashkanta rates 2026: the tranche comparison table

A mashkanta is never a single rate — it's a blend of tranches. Here are the indicative levels at the start of 2026 for a strong non-resident file (Bank of Israel base rate: 3.25%): | Tranche | Indicative 2026 rate | Best for | |---|---|---| | Fixed non-indexed (Kalatz) | ~5.0% over 20 years | Maximum security, constant payment | | Fixed indexed (Tzamud) | ~3.2% + inflation | Betting on contained inflation | | Prime variable (P-0.5%) | ~5.75% | Flexibility, early repayment without penalty | | 5-year adjustable | ~4.6% | Cost/security compromise | **Reading the table:** a typical structure for a non-resident borrowing ₪1M over 20 years blends 40% fixed non-indexed, 30% prime and 30% adjustable. The starting monthly payment is around ₪6,800.

Two things change everything. First, these rates are negotiable: a broker routinely gets 0.2 to 0.4 points below the opening schedule, especially with a down payment above 50%. Second, the 'rate' isn't the total cost: origination fees (~0.25% of the loan), borrower insurance and indexation can add 15% to the real cost. Always demand the full amortization schedule before signing.

LTV, terms and down payment: 2026 rules for non-residents

The golden rule: **50% maximum**. The Bank of Israel caps non-resident financing at 50% of the property value (vs 75% for a first-time resident buyer): - ₪2,000,000 property → minimum ₪1,000,000 down + fees (~8%) - ₪3,500,000 property → minimum ₪1,750,000 down + fees - Term: 20 to 30 years depending on age (loan must end before age 75-80 depending on the bank) - Debt ratio: monthly payment ≤ 30-40% of proven net income

Pre-approval (*ishur ekroni*) changes the game: it's the bank's in-principle commitment, valid 3 months, securing your offer. Without it you're negotiating blind; with it, sellers take you seriously and you know your exact budget before viewing. The file is assembled fully remotely: bank statements, tax returns and translated pay slips are enough in 90% of cases.

Prime or fixed rate: which structure for a foreign buyer?

The *prime* tranche (base rate minus a margin, typically P-0.5%) appeals through flexibility: early repayment without penalty, payments falling if the Bank of Israel eases. In 2026 it starts around 5.75% — pricier than fixed, but revisable downward. The **non-indexed fixed rate** (~5% over 20 years) is the peace-of-mind option: the payment never moves. For a remotely managed rental investment, it's often the best choice — your cash flow stays predictable.

Our recommendation for a foreign buyer: **blend**. One third fixed for security, one third prime for flexibility (handy if you resell in 5-7 years), one third adjustable to optimize cost. And play banks against each other: 3 banks minimum, or a broker who does it for you. [Simulate your financing](/simulateur/financement) to cost your project before hunting for a property.

Mashkanta: frequently asked questions

What down payment is needed for a mashkanta as a non-resident?

Plan for at least 50% down: banks cap non-resident financing at 50% (vs 75% for first-time resident buyers). On a ₪2M property, that's about ₪1M down, plus fees (higher purchase tax, lawyer, broker).

Can you assemble a mashkanta file from abroad?

Yes, it's standard practice. An Israeli broker builds the file remotely: proven and translated income, bank statements, ID. Most banks accept non-resident files with no travel; final signing can be done by power of attorney.

What are the mashkanta rate types?

A mashkanta blends several tranches: non-indexed fixed (~5% over 20 years in 2026), inflation-indexed fixed, adjustable every 1-5 years, and base-rate-linked (prime, ~5.75%). A good structure blends tranches to balance security and total cost.

What are mashkanta rates in 2026?

Indicatively at the start of 2026 (base rate 3.25%): non-indexed fixed around 5% over 20 years, prime variable around 5.75%, 5-year adjustable around 4.6%. Rates are negotiable: a broker routinely gets 0.2-0.4 points off.

What is pre-approval (ishur ekroni)? Is it mandatory?

The ishur ekroni is the bank's in-principle commitment, valid 3 months, fixing your borrowing envelope. Not legally mandatory, but essential in practice: without it you sign a firm purchase contract not knowing if your loan will be approved — and in Israel a broken contract means losing the deposit.

Can you repay a mashkanta early?

Yes, but terms depend on tranches: the prime tranche repays penalty-free anytime, while fixed-rate tranches may carry early-repayment penalties (based on the bank's lost profit). Negotiate this upfront if you plan a medium-term resale.

Updated on October 9, 2026. Sources: Bank of Israel (policy rates), IsraelStart financing simulator.