Buying a home in Israel
The Olim guide: steps, mashkanta, purchase tax and pitfalls to avoid.
How do I buy a home in Israel as an Oleh?
Like any buyer in Israel, you search for a property, make an offer, then sign a contract drafted by a lawyer (there is no notary in Israel — the lawyer handles everything, including registration at the Tabu land registry). Your mortgage (mashkanta) is usually split across several rate "tracks", with at least a third at a fixed rate. As an Oleh, you're eligible for a reduced purchase tax (Mas Rechisha) rate within a time window — this doesn't replace advice from a real-estate lawyer and a mortgage advisor (yoetz mashkantaot).
Typically 2 to 4 months between an accepted offer and Tabu registration, depending on file complexity and how fast the bank moves.
- 1Search & bank pre-approvalBefore viewing seriously, get an "Ishur Ekroni" (in-principle approval) from a bank: it confirms how much you can borrow and reassures the seller of your solvency.
- 2Make an offer (Hatza'a)A written offer, sometimes with a guarantee check (Zikaron Dvarim or Hatza'a bikhtav). This document can carry contractual weight in Israel — never sign it without legal advice.
- 3Contract & lawyer (no notary)In Israel, a lawyer — not a notary — drafts the sale contract (Heskem Mechira), checks for liens on the property (mortgages, easements) at the land registry, and handles final registration. The buyer's lawyer is mandatory; some buyers also use a separate lawyer from the seller's.
- 4Financing — the mashkantaOnce the contract is signed, you finalize your loan file with your chosen bank(s): rate tracks, amount, duration. The bank releases funds on a schedule tied to milestones (often at signing, then at key stages).
- 5Registration at the TabuFinal ownership transfer happens through registration at the Tabu (Israeli land registry). Your lawyer files this — it's this step, not the contract signature, that makes you the legally recognized owner.
A mortgage in Israel is almost always split into several "tracks" (masslulim), each with its own rate rules. Here are the 4 most common tracks, in plain language:
Kal"atz
Fixed rate, unlinked to inflation. The rate never moves and the outstanding principal is not affected by inflation — your payment is identical from the first to the last month. The most predictable track, often perceived as the "priciest" upfront in exchange for that certainty.
Kvua Tzamud
Also fixed, but this time linked to the consumer price index (CPI). The interest rate itself doesn't change, but the outstanding principal grows with inflation — so your payment can rise over time even at a fixed rate.
Prime
Variable rate, equal to the Bank of Israel base rate plus a fixed 1.5-point margin. It changes automatically with every monetary committee decision. Often favored because it allows early repayment without penalty, unlike fixed tracks.
Mishtana
Variable rate, but reset only at fixed intervals set at signing (often every 5 years), sometimes combined with CPI linkage. The starting rate is often attractive, in exchange for a risk of increase at each reset.
Bank of Israel requirement (banking supervision circular 451): at least one third of the loan amount must be at a fixed rate (Kal"atz and/or Kvua Tzamud), and at most two thirds at a variable rate (Prime + Mishtana combined). The goal: limit your exposure if rates rise sharply.
Per-track calculation, real Bank of Israel rates, automatic warning if your mix breaks the one-third rule.
Sarah, an Olah for 2 years, buys an apartment for ₪1,800,000 in Netanya with a ₪1,200,000 loan over 25 years. She splits her mix like this:
Kal"atz
₪500,000
42%
4.8%
Prime
₪400,000
33%
5.3%
Mishtana
₪300,000
25%
3.4%
Rates shown are illustrative only (not real-time rates) — it's precisely this gap between tracks that's the reason to mix them instead of putting everything on one.
42% at a fixed rate: well above the Bank of Israel's one-third minimum. To see her real per-track monthly payment, head to the simulator.
This split is one example among many possible ones, not a recommendation to copy — yours will depend on your profile, down payment, and your bank's offers.
Test this mix in the simulator →Reduced purchase tax (Mas Rechisha)
Verified August 10, 2026New Olim benefit from a reduced Mas Rechisha (property purchase tax) rate compared to Israeli residents, on a portion of the property's value — the exact rate depends on the price and changes every January 16 (statutory indexation). Rather than showing a bracket that would already be outdated by the time you read this, use the Tax Authority's official simulator for your exact amount.
- Eligibility: purchase between 1 year before your Aliyah date and 7 years after.
- The discount can be used once for a home, and once for a business property.
- Since August 2024, the maximum preferential bracket is reserved for buying a sole residence (your only property in Israel).
Sal Klita housing support
The Sal Klita (absorption basket) includes a housing component paid for the first months after Aliyah. It doesn't directly fund a purchase, but it eases your budget while you search.
See Sal Klita details in our benefits guide →Mehir Lamishtaken — discounted purchase program
A separate program (Dira Behanacha lottery, Ishur Zakaut certificate) lets you buy below market price in certain projects. Eligibility conditions for Olim are detailed in our dedicated guide.
See the Mehir Lamishtaken guide →Many advisors recommend new Olim rent for 1-2 years before buying: time to learn the neighborhoods, build a local income history (banks want Israeli income records for a mashkanta), and avoid a rushed decision. It's not a hard rule — but worth weighing calmly, especially since your Mas Rechisha window (up to 7 years after Aliyah) leaves time to choose well.
These are market ranges observed in Israel, not regulated fees — they vary by city, professional, and case complexity.
- Lawyer's feesTypically 0.5% to 1.5% of the property price (negotiable), for drafting the contract and Tabu registration.
- Property appraisal (Shamai)Often required by the bank before releasing the mashkanta — a few hundred to ~1,500 ILS depending on the property.
- Mandatory insuranceThe bank requires life insurance (covering the loan balance) and home insurance (property structure) tied to the mashkanta.
- Bank processing feesFile-opening fees charged by the bank, vary by institution — negotiable.
- Mas RechishaSee the Olim benefits section above — use the official simulator for your exact amount.
- Teoudat Oleh (immigrant certificate) — proves your status and eligibility for Olim benefits
- Teoudat Zehut (Israeli ID card)
- Last 3 payslips or employer letter (or financial statements if self-employed)
- Bank statements from the last 3 to 6 months
- Signed reservation contract or offer (Hatza'a) on the target property
- Proof of down payment source (origin of funds)
Tabu
Israeli land registry
Heskem Mechira
Sale contract
Hatza'a
Written offer
Ishur Ekroni
Bank in-principle approval
Shamai
Property appraiser
Yoetz Mashkantaot
Mortgage advisor
Mas Rechisha
Purchase tax
Zikaron Dvarim
Memorandum of understanding
This guide informs — it doesn't replace personalized advice
This guide explains the general home-buying process in Israel for Olim. It does not replace advice from a real-estate lawyer, a mortgage advisor (yoetz mashkantaot), or an accountant for your personal situation. Thresholds and rates (Mas Rechisha, base rate) change — notably every January 16 for property taxation — always reconfirm exact amounts via official simulators before any decision.
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