What Is a Mashkanta (Mortgage) in Israel?

Q: What Is a Mashkanta (Mortgage) in Israel?

A Mashkanta (משכנתא) is an Israeli home loan secured against the property being purchased. Israeli banks do lend to non-resident foreign buyers, but the terms differ meaningfully from a US or UK mortgage. Israeli mortgages are typically blended across several tracks : a fixed unlinked rate (Katz), a variable rate linked to the Bank of Israel's Prime rate, and a track linked to the Consumer Price Index (CPI). The maximum loan-to-value ( LTV ) for a foreign, non-resident buyer is 50% — you bring at least half the purchase price as equity. Why it matters for a buyer: foreign buyers should arrange financing before committing to a property. Approval from an Israeli bank typically requires a branch visit and takes several weeks, so many overseas buyers use a licensed Israeli mortgage broker to navigate the multi-track system. Source: Bank of Israel mortgage regulations for non-residents

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Accepted Answer

A Mashkanta (משכנתא) is an Israeli home loan secured against the property being purchased. Israeli banks do lend to non-resident foreign buyers, but the terms differ meaningfully from a US or UK mortgage.

Israeli mortgages are typically blended across several tracks: a fixed unlinked rate (Katz), a variable rate linked to the Bank of Israel's Prime rate, and a track linked to the Consumer Price Index (CPI). The maximum loan-to-value (LTV) for a foreign, non-resident buyer is 50% — you bring at least half the purchase price as equity.

Why it matters for a buyer: foreign buyers should arrange financing before committing to a property. Approval from an Israeli bank typically requires a branch visit and takes several weeks, so many overseas buyers use a licensed Israeli mortgage broker to navigate the multi-track system.

Source: Bank of Israel mortgage regulations for non-residents

What Is a Mashkanta (Mortgage) in Israel?

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