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 in Israel.
“There’s a clear increase in this space, both among new immigrants and foreign residents preparing for aliyah,” said Ronen Ben-Bassat, Head of Business Development at Bank Leumi's Mortgages Division.
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 once you become an Israeli citizen,” 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 said.
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, there are additional considerations that tend to arise later on.
Currency exposure is one area that is often underestimated. “If your income is in dollars but your mortgage is in shekels, and the dollar drops, your real payment goes up,” Ben-Bassat said.
Tel Aviv
(Photo: Courtesy of Ben Shalom Entrepreneurship)
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 to their mortgage account, 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, there are more options that may be more suitable for the customer's needs,” 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
If you are still living abroad, according to foreign banking regulations, the bank must follow; you may be required to be present in Israel in some stages of the process, and you may also ask the bank to manage the process with your local representative in Israel.
Ronen Ben-Bassat, head of credit in the mortgage division at Bank Leumi Photo: Oren DaiBroadly speaking, New immigrants are entitled to reduced purchase tax rates when buying a residential property in Israel, subject to specific conditions. The benefit only applies to purchasing a single property, and applicants must meet the legal requirements. Further information is available on the Ministry of Aliyah and Integration's website and you may want to consult a tax specialist. Moreover, developers are increasingly targeting this market, offering promotions and tailored outreach abroad.
Quick Q&A for new olim
Do I need an 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, but according to foreign banking regulations, the bank must follow. You may be required to be present in Israel when negotiating and signing the mortgage papers, or ask the bank to manage the process with your local representative in Israel.
For new immigrants, the path to homeownership is open, but it requires preparation. Understanding the system, planning for financial risks and getting local support can make the difference between a smooth transition and costly mistakes.
This publication does not constitute an offer and/or a commitment to extend credit and/or grant a loan.
The granting of any loan, including its amount and terms (including collateral), is subject to the criteria applied by Bank Leumi, at its sole discretion, and to applicable regulatory requirements.
Failure to meet the loan repayment obligations may result in the accrual of default interest and the initiation of enforcement and/or legal proceedings.
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First published: 11:24, 06.05.26