LearnGlossary
Hebrew–English Mortgage Glossary
Israeli mortgage and real estate discussions are full of Hebrew terms that do not have direct English equivalents. This glossary gives you the Hebrew word, its transliteration, and a plain-English explanation so you can understand, and participate in, every conversation about your mortgage.
A
Appraisal / Valuation
שומה|Shuma
- An independent property valuation ordered by the bank to determine the property's market value. The shuma amount, not the purchase price, determines your maximum loan. The appraisal costs 1,500-3,000 NIS and is paid by the borrower.
Approval in Principle
אישור עקרוני|Ishur Ikroni
- A non-binding letter from the bank indicating approximately how much they are willing to lend you based on your income and financial profile. Not a guarantee, but essential for knowing your budget before property shopping.
B
Building Committee
ועד בית|Va'ad Bayit
- The residents' committee of an apartment building, responsible for maintaining common areas, elevators, gardens, and shared expenses. Monthly fees (typically 100-500 NIS) are separate from your mortgage payment.
C
Capital Gains Tax
מס שבח|Mas Shevach
- Tax on the profit from selling property in Israel. Calculated on the difference between purchase price and sale price, minus allowable deductions. Israeli residents selling their sole apartment may qualify for a full exemption.
- Related: Tax Guide
CPI (Consumer Price Index)
מדד המחירים לצרכן|Madad
- Israel's official measure of inflation, published monthly by the Central Bureau of Statistics. CPI-linked mortgage tracks adjust the outstanding principal based on changes in this index. When the madad rises, your balance grows.
- Related: Mortgage Tracks Explained
D
Developer / Builder
קבלן|Kablan
- A real estate developer or construction company. Buying from a kablan (new construction) involves different payment schedules and legal processes compared to buying a resale property from a private seller.
Down Payment / Equity
הון עצמי|Hon Atzmi
- The cash portion you contribute toward the purchase price, after the mortgage. Bank of Israel regulations require minimum equity of 25% for olim, 30% for residents, and 50% for foreign buyers or investors.
E
Early Repayment Penalty
עמלת פירעון מוקדם|Amlat Pir'on Mukdam
- A fee charged by the bank when you pay off part or all of your mortgage before the scheduled end date. Varies by track: minimal for Prime, moderate for CPI-linked, and potentially substantial for long-term fixed tracks.
F
Fixed Rate (CPI-Linked)
ריבית קבועה צמודה|Ribit Kvua Tzmuda
- A mortgage track where the interest rate is fixed for the term, but the principal balance adjusts with inflation (CPI). The rate you see is not the full cost, you must also account for CPI changes to the balance.
- Related: Mortgage Tracks Explained
Fixed Rate (Non-CPI)
ריבית קבועה לא צמודה|Ribit Kvua Lo Tzmuda
- A mortgage track with a fixed interest rate and no inflation linkage. Your payment stays exactly the same from first to last. The closest equivalent to a US-style fixed rate mortgage. Typically carries the highest interest rate of any track.
- Related: Mortgage Tracks Explained
L
Land Registry Extract
נסח טאבו|Nessach Tabu
- An official document from the Tabu (Israel Land Registry) showing the legal ownership of a property, any registered liens or mortgages, easements, and encumbrances. Essential for verifying the seller actually owns what they are selling.
Land Registry Office
לשכת רישום המקרקעין (טאבו)|Tabu
- Israel's official land registry, part of the Ministry of Justice. Records property ownership, mortgages, and other rights. Not all properties are registered in the Tabu, some are registered with the Israel Land Authority or a cooperative society (aguda).
Lawyer / Attorney
עורך דין|Orech Din
- In Israeli property transactions, both buyer and seller typically engage their own lawyer. The buyer's lawyer reviews the purchase agreement, conducts due diligence on the property, and handles mortgage registration. Fees are typically 0.5-1.5% of the purchase price plus VAT.
M
Mortgage
משכנתא|Mashkanta
- A loan secured against real property. In Israel, mortgages are structured as multiple tracks (maslulim), each with different interest rate types and terms.
- Related: Ultimate Guide
Mortgage Advisor / Consultant
יועץ משכנתאות|Yo'etz Mashkantaot
- A licensed professional who advises borrowers on mortgage structuring, approaches banks on the client's behalf, negotiates rates, and manages the application process. Must be licensed by the Bank of Israel.
Mortgage Approval
אישור משכנתא|Ishur Mashkanta
- The formal, binding approval from the bank specifying the loan amount, tracks, interest rates, and conditions. The approval has a limited validity period (typically 24 business days for rate locks), timing matters.
Mortgage Track
מסלול|Maslul
- One segment of your mortgage with a specific interest rate type. Israeli mortgages are typically split across 2-4 maslulim (tracks). Each track can have a different rate type, term length, and amount.
- Related: Mortgage Tracks Explained
N
New Immigrant
עולה חדש / עולה חדשה|Oleh Chadash / Olah Chadasha
- A Jewish person who has made aliyah (immigrated) to Israel. Olim chadashim receive significant mortgage benefits including reduced mas rechisha (purchase tax) and preferential treatment from banks, for up to 10 years after aliyah. Like Israeli residents buying a first home, they can finance up to 75% of the property value.
- Related: Olim Benefits Guide
P
Pay Slip
תלוש משכורת|Tlush Maskoret
- Monthly salary statement from your employer, showing gross pay, deductions (tax, social security, pension), and net pay. Banks typically require the last 3 months' pay slips for mortgage applications.
Power of Attorney
ייפוי כוח|Yipui Koach
- A legal document authorizing someone to act on your behalf. Essential for foreign buyers who cannot be physically present for every step. Typically granted to your Israeli lawyer to handle property registration and bank coordination.
Prime Rate
ריבית פריים|Ribit Prime
- The base interest rate set by the Bank of Israel, currently serving as the reference rate for Prime-linked mortgage tracks. When the Bank of Israel raises or lowers its benchmark rate, Prime moves immediately, and your Prime-track payments change accordingly.
- Related: Mortgage Tracks Explained
Property Tax (Municipal)
ארנונה|Arnona
- A municipal property tax paid to the local city or regional council. Billed bi-monthly. Rates vary by city, neighborhood, and property size. New olim may qualify for discounts. Separate from your mortgage payment.
Purchase Agreement / Contract
חוזה רכישה|Hozeh Rechisha
- The binding contract between buyer and seller specifying the purchase price, payment schedule, and conditions. In Israel, this is a legally binding document and typically requires a 10-20% deposit upon signing.
Purchase Tax
מס רכישה|Mas Rechisha
- A tax paid by the buyer to the Israel Tax Authority upon purchasing property. Rates depend on buyer status (resident, oleh, foreign) and whether the property is a first or additional apartment. Can be 0-10% of the purchase price.
- Related: Tax Guide
R
Real Estate Agent
מתווך|Metavech
- A licensed real estate broker. In Israel, agents typically charge 1-2% of the purchase price plus VAT from each side (buyer and seller). Agent fees are not included in the mortgage, they are an additional purchase cost.
Renovation / Remodeling
שיפוץ|Shiputs
- Property renovation. A significant cost that many buyers underestimate. Basic renovation of an Israeli apartment: 100,000-300,000 NIS. Full gut renovation: 300,000-600,000+ NIS. Some banks offer supplementary loans for renovations.
S
Safe Room
ממ"ד|Mamad
- A reinforced security room required in all Israeli residential buildings constructed after 1992. Apartments with a mamad command a premium over those without. When evaluating older apartments, the absence of a mamad is a significant factor.
Seismic Retrofit Program
תמ"א 38|TAMA 38
- A national program to strengthen older buildings against earthquakes. Residents receive construction (additional floors, renovated lobby, elevator, safe rooms) in exchange for allowing the developer to build and sell additional units. Can significantly increase property values.
Sole Apartment
דירה יחידה|Dira Yechida
- A property that is the owner's only residential property in Israel. This classification entitles the buyer to significantly reduced mas rechisha rates. If you own another apartment, you pay the much higher investor/second-apartment tax rates.
T
Tax Assessment
שומת מס|Shomot Mas / Shomei Mas
- Official tax assessment documents issued by the Israel Tax Authority (or equivalent foreign authority). Self-employed borrowers typically need to provide the last 2-3 years of tax assessments for mortgage applications.
U
Urban Renewal
פינוי בינוי / התחדשות עירונית|Pinui Binui / Hitchadshut Ironit
- Government-backed programs to demolish and rebuild old residential buildings. Existing residents receive new apartments (often larger and with modern amenities) in a new building on the same site. Can dramatically increase property values but involves years of construction disruption.
V
Variable Rate (CPI-Linked)
ריבית משתנה צמודה|Ribit Mishtana Tzmuda
- A mortgage track where the interest rate resets every 5 years based on government bond yields, and the principal adjusts with CPI inflation. Combines rate risk and inflation risk but can offer lower initial rates.
- Related: Mortgage Tracks Explained
VAT (Value Added Tax)
מע"מ|Ma'am
- Israel's value-added tax, currently 18%. Applies to new property purchased from a developer (the price usually includes VAT). Does not apply to resale purchases between private individuals. Applies to lawyer fees, agent commissions, and other services.
Z
Zoning Plan
תב"ע|Taba
- The official zoning and building plan for an area, filed with the local planning committee. Determines what can be built, building heights, density, and land use. Checking the taba before purchasing can reveal future development plans that might affect your property.
Still Confused by a Term?
Israeli mortgage terminology can be overwhelming, especially when you are seeing these terms for the first time in a high-stakes situation. I explain everything in plain English, no jargon, no assumptions about what you already know.