First steps in getting a mortgage in Israel.

The very first thing you should do when looking to buy a property is to get pre-approved for a mortgage. This tells you how much you can borrow based upon your current circumstances. This is obtained before you even find a property, and is very helpful when looking and negotiating on a property. By knowing how much the bank is willing to lend you, you will be able to narrow or extend your search.

Once you have found a property you will need to apply for the mortgage. The main part of this is proving your income, and that you have the resources to repay the mortgage. As a rough guide, the banks require your income to be three times the monthly mortgage payment. This is only a rough guide, and can alter depending on assets, savings or a guarantor for the mortgage.

In most cases banks will lend 70% of the value of the property. This can go even higher if you use a certain type of insurance through EMI. This does however add considerably to your monthly mortgage payments.

Click here for more information on mortgages in Israel.