For many new immigrants, buying a home in Israel is both a personal milestone and a complex financial step, especially for those navigating the system from abroad or shortly after arrival. “There’s a clear increase in this space, both among new immigrants and foreign residents preparing for aliyah,” said Ronen Ben-Bassat, head of credit in the mortgage division at Bank Leumi.
The trend reflects not only lifestyle choices but also broader global concerns. Many buyers are securing property in Israel as a long-term option for themselves or their children, even before making a final decision to relocate.
From a regulatory standpoint, new immigrants are largely treated like Israeli residents. “If it’s your only home, you can receive up to 75% financing, just like an Israeli resident,” Ben-Bassat said. Still, the process comes with unique challenges.
Where new olim run into trouble
The first hurdle is financial visibility. Many olim earn their income abroad and arrive without a local credit history, making it harder for banks to assess their profile. “It’s harder to assess income when it’s generated abroad, and there’s no Israeli credit history,” Ben-Bassat explains.
Banks often rely on foreign credit scores and tax records, but applicants should be prepared to provide at least two to three years of financial documentation.
Beyond approval, the bigger risks come later. Currency exposure is one of the most common mistakes. “If your income is in dollars but your mortgage is in shekels, and the dollar drops, your real payment goes up,” he said. Cash flow is another weak point. Many new immigrants keep their primary accounts abroad and fail to maintain enough liquidity in Israel. “Sometimes people forget to transfer money, and a payment can bounce. That gets recorded in Israel’s credit system,” Ben-Bassat said.
To avoid this, banks recommend holding several months’ worth of payments locally, along with a buffer for unexpected costs such as taxes, maintenance and repairs. At the same time, many olim underestimate how different Israeli mortgages are. “In many countries, mortgages are very simple, mostly fixed-rate. In Israel, they are much more sophisticated,” Ben-Bassat said. By law, at least one-third of a mortgage must be fixed-rate, but the rest can be structured across different tracks, including variable and prime-linked components.
What you should know before you start
Even if you are still abroad, the process is accessible. Most buyers rely on a power of attorney, appointing a lawyer or trusted relative in Israel to handle the transaction. “The most common solution is to appoint a power of attorney,” Ben-Bassat said.
While there are no major mortgage programs reserved specifically for new immigrants, you are entitled to the same financing conditions and tax benefits as Israeli residents. At the same time, developers are increasingly targeting this market, offering promotions and tailored outreach abroad.
Quick Q&A for new olim
Do I need Israeli credit history to get a mortgage?
Not necessarily. “Foreign credit scores, especially from the U.S., can serve as a parallel,” Ben-Bassat said.
What documents should I prepare?
Two to three years of tax returns, proof of income and, if self-employed, an accountant’s projection of future earnings.
What is the biggest mistake to avoid?
Ignoring currency risk and not keeping enough funds in Israel to cover payments.
Can I buy a property before moving to Israel?
Yes. Most buyers do so using a power of attorney through someone who manages the process locally.
Ronen Ben-Bassat, head of credit in the mortgage division at Bank Leumi Photo: Oren DaiIs now a good time to buy?
“That’s the million-dollar question,” Ben-Bassat said, pointing to uncertainty around interest rates, currency movements and the broader security situation.
For new immigrants, the path to homeownership is open, but it requires preparation. “I would strongly recommend working with someone in Israel and not managing everything from abroad,” Ben-Bassat said. Understanding the system, planning for financial risks and getting local support can make the difference between a smooth transition and costly mistakes.