For many people buying their first home in Israel, the process begins with a feeling rather than a spreadsheet. The feeling might be excitement, relief or a sense of finally belonging. According to Ayala Lublin, a certified credit officer at the Bank of Jerusalem, that emotional starting point is both understandable and risky. “In Israel, owning a home is deeply emotional,” Lublin said. “People do not see it only as a financial step. It is about security, identity and putting down roots.”
Lublin has spent years working with people buying their first apartment. Many arrive with strong motivation and clear ideas about where they want to live, but far less clarity about how the mortgage will affect their lives after the purchase is complete. One of the most common patterns she sees is buyers falling in love with an apartment before fully understanding what it will cost them every month and for how long. “Once someone imagines themselves living there, it becomes very hard to step back,” she said. “That is when people stretch themselves too far.”
Ayala Lublin Interview
(Footage: Yaron Brenner)
The pressure to buy is not always internal. Family expectations, social norms and a widespread belief that renting is temporary all contribute to a sense that buying must happen quickly. In some cases, buyers worry that if they do not act now, they will miss their opportunity altogether. That urgency, Lublin said, often leads to decisions that are difficult to reverse. “A mortgage is not just another expense,” she said. “It shapes daily life. It determines how much flexibility you have, how much stress you carry and how secure you feel.” Many first-time buyers focus on whether they can qualify for a loan but give less thought to whether the monthly payments leave room for normal life. Lublin said she often encourages clients to think beyond the immediate future. “People calculate based on today’s income,” she said. “But life changes. Families grow. Careers shift. A mortgage has to survive all of that.”
Another emotional factor is location. Buyers often aim for specific neighborhoods because of familiarity, community or proximity to family. While these considerations are valid, Lublin said they should be weighed against affordability. “There are cases where moving a little farther away can completely change the financial picture,” she said. “That trade-off is not always easy to accept emotionally.” Preparation, she said, can help bring balance to the process. Buyers who gather documents early, understand their savings and calculate realistic monthly payments are better positioned to make calm decisions. “When people come prepared, the conversation changes,” Lublin said. “They feel more in control.”
'In Israel, owning a home is deeply emotional, People do not see it only as a financial step. It is about security, identity and putting down roots'
Despite the challenges, she said the goal is not to discourage buyers but to help them approach the process with awareness. “Buying your first home should feel empowering,” she said. “Not overwhelming.” Lublin is personally familiar with that emotional weight. She moved to Israel as a child and remembers how important stability felt during that transition. That experience influences how she works with clients today. “When you are building a new life, security matters,” she said. “That is often what people are really looking for when they buy a home.”
Ayala Lublin, Bank of JerusalemPhoto: Bank of JerusalemHer advice to first-time buyers is simple but often overlooked. “Pause before you commit,” she said. “Ask how this mortgage will feel five or ten years from now, not just today.” In a country where homeownership carries so much meaning, she said, the most responsible decision is one that supports both emotional goals and financial reality. “A home should give you peace,” she said. “The mortgage should not take that peace away.”
* In collaboration with Bank of Jerusalem
* * Failure to meet loan repayment obligations may result in penalty interest and legal enforcement procedures according to the Bank's terms at the time the loan is taken