Arranging your non-resident mortgage in Israel

Israel's high-end real estate market is sizzling, and even attracting developers such as Donald Trump. Trump is just one of a host of developers plunging into the market as wealthy Israelis and foreigners snatch up properties in the top neighbourhoods of Tel Aviv and Jerusalem. In the past two years, prices have jumped by 60%, to record levels.

Dozens of new projects are under construction or on the drawing boards to meet the demand of a growing number of local millionaires and foreign buyers looking for new accommodation.

If you are purchasing a property in Israel, Israeli Mortgages are available for the majority of nationalities for either house purchase or re-financing for home improvement purposes only.

Types of Israeli Mortgage: Repayment Mortgage & Interest Only. Minimum: $25,000, no maximum - up to 80% of valuation or purchase price (whichever is the lower)

Proof of Income: required in all cases (can be made up of Earned Income, Pension, Investment or Rental Income. Please note however, it is not always the case that the Lender will take all or part of these Incomes into account when determining the maximum loan available). Non-Status loans are currently not available. Other conditions may include Buildings insurance with the Bank's interest noted thereon.

Term: Up to 15 years up to age 65
Currency: All major Currencies, including Euros, Sterling, and US Dollars.
Interest Rate: The rate of interest will be variable, and is calculated based on the London Inter-Bank Offered Rate (LIBOR) plus a negotiable margin. The margin will depend on the following criteria:

• The percentage of the purchasers funds being used
• The amount of the loan
• The duration of the loan
• Repayment ability
• Any additional collateral that may be offered by the purchaser

Example Israeli Mortgage in Euros: Repayment Mortgage of €100,000 over a period of 15 years at an approx Variable interest rate of 6.0% = approx €843.00 Capital & Interest per month = a total approximate amount payable over the term of $ 151,740 excluding other fees.
Israel.