What Is LTV (Loan-to-Value) for an Israeli Mortgage?

Q: What Is LTV (Loan-to-Value) for an Israeli Mortgage?

LTV (Loan-to-Value) is the percentage of a property's value that an Israeli bank will lend against. The Bank of Israel sets hard caps that depend entirely on buyer category: Foreign buyer / non-resident: maximum 50% LTV — at least 50% down. Israeli resident, first and only home: up to 75% LTV. Israeli resident, additional property: maximum 50% LTV. New Oleh: up to 75% LTV. LTV is calculated against whichever is lower: the agreed purchase price, or the bank's own valuation ( Shuma ). If the bank appraises the property below the price you agreed with the seller, your maximum loan shrinks accordingly. Why it matters for a buyer: at a 3,000,000 ILS property, a foreign buyer's 50% cap means 1,500,000 ILS must be in cash. Underestimating the LTV limit is one of the most common reasons overseas buyers can't close a deal they already committed to. Source: Bank of Israel, LTV regulations

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Accepted Answer

LTV (Loan-to-Value) is the percentage of a property's value that an Israeli bank will lend against. The Bank of Israel sets hard caps that depend entirely on buyer category:

Foreign buyer / non-resident: maximum 50% LTV — at least 50% down.
Israeli resident, first and only home: up to 75% LTV.
Israeli resident, additional property: maximum 50% LTV.
New Oleh: up to 75% LTV.

LTV is calculated against whichever is lower: the agreed purchase price, or the bank's own valuation (Shuma). If the bank appraises the property below the price you agreed with the seller, your maximum loan shrinks accordingly.

Why it matters for a buyer: at a 3,000,000 ILS property, a foreign buyer's 50% cap means 1,500,000 ILS must be in cash. Underestimating the LTV limit is one of the most common reasons overseas buyers can't close a deal they already committed to.

Source: Bank of Israel, LTV regulations

What Is LTV (Loan-to-Value) for an Israeli Mortgage?

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