Israel Mortgage Calculator: Estimate Your Monthly Payments

Use our Mortgage Calculator to estimate your monthly payments and make informed decisions about your real estate investment in Israel. Whether you are buying a new home, investing in property or making Aliyah, enter the purchase price, your down payment, the interest rate and the loan term to see what your financing could look like. Then read the guide below to understand how much you can borrow and what other costs to plan for.

Updated October 2026: Bank of Israel rate 3.25% · Prime 4.75%

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.

Frequently asked questions

What is the Bank of Israel interest rate?

As of October 21, 2026, the Bank of Israel interest rate is 3.25%. The next decision is scheduled for November 23, 2026.

What is the Prime rate in Israel?

Prime is the Bank of Israel rate plus 1.5 percentage points. With the rate at 3.25%, Prime is currently 4.75%. The rate you pay on a Prime-linked track depends on a margin that varies by bank and by borrower.

How much can a foreigner borrow for a mortgage in Israel?

Foreign citizens and non-residents can typically borrow up to 50% of the property value. Some buyers, such as Israeli citizens or people entitled to citizenship, may qualify for better terms. Every loan is subject to bank approval.

How much can I borrow as a first-time buyer?

Israeli residents buying their first home can borrow up to 75% of the property value, which means a minimum down payment of 25%. Buyers purchasing an additional or investment property are generally limited to 50%.

How is the monthly mortgage payment calculated?

It depends on three things: the loan amount, the interest rate and the loan term, which can be up to 30 years. Enter them in the calculator above to see your estimate. Your bank’s offer will depend on the loan tracks you choose.

Buying in Israel from abroad?

Our English-speaking agents can explain the process, the costs and the financing options for your situation.

Talk to our agents

This calculator and guide are for information and estimation only. They are not financial, tax or legal advice. Rates, limits and taxes change, so speak with a licensed mortgage advisor, your bank and a lawyer before you commit. Also read our guide on how to buy property in Israel.