Bank Leumi offers foreign residents the opportunity to apply for a special mortgage to buy real estate in Israel.
Amount:
Loans are usually granted for up to 50% of property value on condition that a down payment of at least 20% of property value has been made from your own funds.
- Minimum purchase value of US $150,000.
- Loans are available in any of the major currencies.
Loan period:
Loans are granted for up to 15 years.
Interest rate:
Variable interest is charged based on LIBOR (London inter-bank offer rate) with a margin of up to 3% p.a. according to the terms of the loan and the amount. LIBOR rates are subject to change according to the period of repayment.
Repayment:
Repayments are due monthly or quarterly on both principal and interest.
Collateral:
The purchased property will serve as collateral to guarantee the loan.
Documentation:
To apply for a loan, the following documentation must be submitted:
- Purchase contract for the said property – signed and sealed.
- Property deeds.
- Evidence of cash flow to service the loan.
- Appraiser’s estimate of value of property.
- Authorised credit information from your bank.
- Power of attorney granted to an Israeli resident.
- Details of your income.
- Insurance policy for the property.
- In some cases, a life insurance policy will be required.
Prepayment:
Partial or full prepayment is allowed without penalty, provided notice is given 12 days before the rollover date.
Bank fees:
According to the Bank's tariff.
Procedure:
Each loan request accompanied by the above documentation will be analyzed by the Bank’s credit department and presented for final approval.
All information is correct as of the date of issue and is subject to change without notice.
