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Israel Mortgage Calculator 2026 – Plan Your Aliyah & Property Investment

Use our Mortgage Calculator to estimate your monthly payments and make informed decisions about your real estate investment in Israel. Whether you’re buying a new home, investing in property, or making Aliyah, this tool helps you understand your financing options. Get a clear picture of your loan amount, interest rates, and repayment schedule to plan your purchase with confidence.

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Mortgage Calculator

Updated for February 2026: Bank of Israel interest rate now at 4%

Expert Advice: Navigating Israel’s 2026 Mortgage Market

The Israeli real estate landscape in early 2026 offers unique opportunities but requires a strategic approach to financing. As of January 5, 2026, the Bank of Israel has lowered the benchmark interest rate to 4.0%, marking a significant shift for both Olim and foreign investors.

Key Insights for Your 2026 Strategy:

  • Take Advantage of Falling Rates: With inflation moderating at 2.6%, the central bank predicts further cumulative cuts, potentially reaching 3.5% by the end of 2026.

  • Understand the “Prime” Impact: In Israel, the Prime rate is the central bank’s base rate plus 1.5%. As of now, the Prime rate stands at 5.5%. This affects variable-rate portions of your loan immediately.

  • Know Your Leverage (LTV):

    • First-time Buyers (Olim): You can borrow up to 75% of the property’s value.

    • Foreign Residents: Financing is typically capped at 50% of the property value.

  • Aliyah Tax Benefits 2026: Under the new 2026 Fiscal Reform, new Olim arriving this year face new reporting requirements for foreign assets, but still enjoy a 10-year tax exemption on foreign income.

  • Purchase Tax (Mas Rechisha): For your primary residence, residential buyers in 2026 benefit from a total exemption on the first 1,871,985 NIS. Olim can qualify for a reduced rate of 0.5% on properties up to roughly 2M NIS.

Pro-Tip: The “Mashkanta” Mix

Don’t rely on a single loan track. Most savvy borrowers in Israel use a combination of Fixed NIS (unlinked) for stability and Prime-linked tracks for flexibility.