First finding an apartment, and only then asking the bank how much it will lend
In Israel a purchase contract is signed with a strict payment schedule. If after signing the bank approves less than expected, the buyer risks the deposit and penalties. So we start with the numbers: how much you will really get and at what monthly payment.
A mortgage is the most expensive purchase of your life. A difference in rate and loan mix over 20-30 years means tens and hundreds of thousands of shekels.
Not necessarily. Bank offers change and need to be compared each time.
They will, but they review 2-3 years of income. Documents must be prepared properly; the advisor will contact your accountant directly.
The price is linked to the construction cost index. You need to decide whether to take the mortgage at once or in parts, and how to combine it with rent.
The order of the deals changes the financing percentage. It pays to plan the sale and purchase together.
Six steps from the first call to the keys
The realtor and the mortgage advisor work as one team. You do not need to repeat the same story to different people.
We look at the goal: first home, upgrade or investment. We calculate equity, income and a realistic monthly payment.
The advisor collects the documents (for the self-employed - directly with the accountant) and gets pre-approval from several banks.
Timur shows properties that fit the approved budget and checks them before you fall in love with an apartment.
We negotiate price and terms, and align the contract payment schedule with the mortgage disbursement. A lawyer drafts the contract.
Banks offer more than 40 loan tracks. The advisor builds your mix from them and secures the best rate in the final offers.
Appraiser, insurance, signing at the bank - we see it through. After the deal the advisor answers questions free of charge: early repayment, refinancing.
Three kinds of mortgage - for any goal
First home, upgrade or investment. How much to ask the bank for, how to account for side costs and how to combine payments with rent while the apartment is being built.
Revising an existing mortgage: rate, tracks, term, payment. Often it shortens the term by several years or lowers the monthly payment over the same term.
Money secured against your existing home: renovation, helping children buy a home, consolidating expensive loans into one payment. Lower rate than a regular loan and a longer term.
How much the bank can lend and what the payment will be
A preliminary estimate based on Bank of Israel rules. The exact amount and rate are set by the bank after reviewing documents.
We estimate the payment at 4.5-5.5% annual interest - an estimate, not a bank offer. Purchase tax, lawyer, realtor and appraiser are not part of the mortgage and are paid from your own funds.
L. Sela Investments & Finance - advisors who worked in banks themselves
The company's founder Liran Sela has been in the mortgage industry since 2002. He spent about 10 years at Leumi Mortgage Bank, including as regional director for the Shfela area, overseeing 25 mortgage branches and more than 50 advisors. In 2016 he founded his own company.
The team includes former bankers from Leumi, Hapoalim and Mizrahi-Tefahot. The company is independent of the banks: its interest is the best terms for the client, not selling a particular bank's products.
What it looks like in numbers
Mortgage ₪4,000, car loan ₪1,500, bank loans ₪2,500, credit cards ₪2,000. Within three weeks the mortgage was refinanced and merged with the other loans over the same term.
Because of index growth the payment rose from ₪3,500 to ₪4,000 and the debt barely shrank. The calculation showed two options:
Frequently asked questions about mortgages in Israel
When should I start with the mortgage - before or after choosing an apartment?
Before. First we get an approval in principle from the banks: the bank reviews income, employment history and equity and confirms the amount it is ready to lend. With that approval you choose an apartment within your real budget and sign without the risk that the bank lends less later.
How much can the bank finance?
Under Bank of Israel rules: up to 75% of the value for a single home, up to 70% if you are upgrading and have not sold your current home yet, up to 50% for an investment (second) apartment. Under the Mehir LaMishtaken program, in some cases up to 90%. The rest is your own equity.
Which costs are not covered by the mortgage?
Purchase tax, lawyer, realtor and appraiser fees, renovation. These are paid from your own funds, so we plan the deal budget in advance together with the advisor.
Do I have to take the mortgage at the bank where I have my account?
No. Bank offers change, and the best bank today may not be the one from six months ago. The advisor requests offers from several banks at once and negotiates the rate and the loan mix.
Why an independent advisor rather than the bank's advisor?
A bank advisor is paid by the bank and offers its products. An independent advisor works for you: compares banks, builds the loan mix from dozens of tracks and supports you until signing. At L. Sela the advisors are former bankers who know the process from the inside.
Can I improve an existing mortgage?
Yes, this is refinancing: the rate, tracks, term or monthly payment change. To check it we need four figures for each track: payoff balance, start and end dates, track type and rate, monthly payment. You can get them from the bank by phone.
I am moving to a new home. What comes first - selling or buying?
It is decided by numbers, not intuition. Your status is set on the day of purchase: if you still own your current home the bank lends up to 70%, if it is already sold - up to 75%. Against the existing home you can additionally get up to 50% of its value. Timur runs the sale and the purchase as one deal, and the advisor builds the financing for it.
I don't speak Hebrew. How does communication work?
You talk with Timur in Russian. He handles your request together with the partner's mortgage advisors, explains every bank offer and is present at the key stages of the deal.
Find out what mortgage you can get
It takes a minute. The request goes to Timur personally; he will contact you and bring in a mortgage advisor if needed.
Buying an apartment in Israel? Start with the mortgage
One conversation - and you know your real budget, monthly payment and next step.
