Mortgage Benefits for Olim Chadashim
As a new immigrant to Israel, you receive significant financial advantages when buying your first home. Higher borrowing limits, reduced taxes, and dedicated bank programs make homeownership more accessible. This guide covers everything you are entitled to and how to claim it.
75%
Maximum LTV
Finance up to 75% of a first home
10
Years
Benefits window from aliyah date
Reduced
Purchase Tax
Significant mas rechisha savings
Finance Up to 75% of the Property Value
As an oleh buying your first home, you can borrow up to 75% of the property value, meaning a down payment of just 25%. This is the most favorable financing tier the Bank of Israel allows, and it applies whether or not you own property abroad.
This is particularly valuable for olim arriving with savings from abroad that may not fully cover a larger down payment in Israel's expensive real estate market. It can mean affording a larger or better-located apartment than you otherwise could.
Practical Example
Property price: 2,500,000 NIS
Mortgage at 75% LTV: up to 1,875,000 NIS.
Down payment needed: 625,000 NIS (25%).
Plus reduced purchase tax, see below for where olim save the most.
Reduced Purchase Tax (Mas Rechisha)
Olim who are purchasing their first apartment in Israel benefit from significantly reduced mas rechisha (purchase tax). The exemption thresholds for olim are higher than those for regular Israeli buyers, which can save you tens of thousands of shekels.
The exact discount depends on when you made aliyah relative to your purchase date and the purchase price. Generally, olim within 7 years of aliyah purchasing their first home enjoy a higher tax-free threshold and reduced rates on amounts above the threshold.
For a detailed breakdown of current tax brackets, see our Tax Guide. You can also calculate your estimated purchase tax using our Purchase Cost Calculator.
Benefits Timeline: Your 10-Year Window
Your olim mortgage benefits are tied to the date of your aliyah. Here is how the benefits phase over time:
Years 1-2
, Full Benefits PeriodMaximum eligibility for all olim mortgage benefits. Banks are most accommodating during this window. Mas rechisha discounts at their highest. This is the ideal time to purchase if you are financially ready.
Years 3-5
, Core Benefits Continue75% LTV still available. Mas rechisha discounts still apply. Some banks may be slightly less flexible on rates but olim programs remain fully active. Most olim purchase during this period after settling into jobs and communities.
Years 5-7
, Benefits Winding DownLTV benefits still active through year 10. Mas rechisha benefits may begin to phase out depending on your specific case and current regulations. Still a good window to purchase with advantages over regular buyers.
Years 7-10
, Final Eligibility WindowThe 75% LTV benefit remains available until 10 years after aliyah. Some tax benefits may have expired. Banks may require more documentation to verify ongoing olim status. If you plan to buy with oleh benefits, do not wait past this window.
Bank Olim Programs
Every major Israeli bank has a dedicated program for new immigrants. The quality of service and the competitiveness of rates vary. Here is what each bank offers:
Bank Leumi
Le'Olim- Dedicated English-speaking olim mortgage department
- Accepts overseas income documentation in English
- Special rate packages for olim within first 5 years
- Branch network with English-speaking advisors in key cities
Bank Hapoalim
Olim Services- English-speaking call center and online banking
- Accepts foreign income for qualification
- Competitive olim mortgage rates
- Streamlined document process for common aliyah countries (US, UK, France, South Africa)
Mizrachi Tefahot
Mortgage for Olim- Israel's largest mortgage lender, extensive experience with olim
- Dedicated olim departments in major branches
- Flexible on overseas income documentation
- Often competitive on CPI-linked fixed rates
Bank Discount
New Immigrant Services- Growing focus on English-speaking olim market
- Competitive rates to attract new immigrant customers
- Digital tools available in English
- Willing to work with complex income situations
FIBI (First International Bank)
Olim Banking- Known for personalized service
- English-speaking relationship managers
- Flexible approach to non-standard income documentation
- Good option for self-employed olim or those with mixed income sources
For a comprehensive comparison of all major banks, see our Bank Comparison Guide.
Required Documents
Olim often need to provide documents from both Israel and their country of origin. Having these ready in advance can speed up the process by weeks.
| Document | Hebrew | Notes |
|---|---|---|
| Teudat Oleh / Teudat Zehut | תעודת עולה / תעודת זהות | Proves your olim status and the date of aliyah. The date determines your benefits window. |
| Aliyah Certificate | אישור עלייה | Issued by the Jewish Agency or Nefesh B'Nefesh. Confirms your official aliyah date. |
| Pay Slips (Tlushot Maskoret) | תלושי משכורת | Last 3 months if employed in Israel. If using overseas income, last 3-6 months from your foreign employer. |
| Tax Returns (Shomei Mas) | שומי מס | Last 2-3 years from your country of origin. Must be translated if not in English or Hebrew. |
| Bank Statements (Dapei Cheshbon) | דפי חשבון | Last 3-6 months from both Israeli and overseas accounts. Shows income flow and financial behavior. |
| Employment Letter | אישור מעסיק | From current employer confirming position, start date, and salary. On company letterhead. |
| Proof of Equity / Down Payment | אישור הון עצמי | Bank statements showing your savings, wire transfer records, or documentation of funds for the down payment. |
| Purchase Agreement (Hozeh Rechisha) | חוזה רכישה | The signed contract with the seller. Required for full mortgage approval (not needed for pre-approval). |
Step-by-Step Process for Olim
Gather your documents
Collect your teudat oleh, income documentation (Israeli and/or overseas), bank statements, and proof of your down payment. If you have foreign-language documents, get them translated.
Get pre-approved (Ishur Ikroni)
Submit your documents to 2-3 banks or work with a mortgage consultant who will approach multiple banks on your behalf. The pre-approval tells you exactly how much you can borrow.
Find your property
With your budget confirmed, search for properties. Consider the city guides for neighborhoods popular with English speakers: Jerusalem, Tel Aviv, Ra'anana, or Beit Shemesh.
Sign the purchase agreement
Work with a real estate lawyer (your own, not the seller's) to review and sign the hozeh rechisha. You'll typically pay a 10-15% deposit at this stage.
Submit full mortgage application
Provide the signed purchase agreement to the bank along with all your documents. The bank orders an appraisal (shuma) of the property.
Choose your track mix and negotiate rates
This is where a consultant adds the most value. Compare offers across banks, negotiate better rates, and select the optimal track combination for your situation.
Sign at the bank and close
Sign the mortgage documents, your lawyer registers the lien, and the bank releases the funds. You now own a home in Israel.
Ready to Use Your Olim Benefits?
I specialize in helping olim chadashim navigate the Israeli mortgage process. From gathering documents to negotiating with banks to signing day, I handle the complexity so you can focus on building your new life in Israel.