Mortgage Calculator

It depends on the rate: at a 5% fixed rate the monthly payment is about ₪5,846. At 4.5% - about ₪5,558. At 6% - about ₪6,443. Total interest over 25 years at 5% is about ₪754,000 - more than the loan principal. Use the calculator above for an exact figure based on the real rate you get.

LTV (Loan-to-Value) is the ratio between the mortgage amount and the property value. The Bank of Israel caps LTV by buyer type: up to 75% for a single home (first-home buyer), up to 70% for a home upgrader, up to 50% for an investor. The lower the LTV, the more attractive the rate usually is.

Prime = Bank of Israel rate + 1.5% (changes whenever the Bank of Israel changes its rate). Fixed unlinked = a fixed rate for the whole life of the loan, not variable and not CPI-linked. Prime is usually cheaper but riskier; fixed is more expensive but gives total certainty.

There is no single mix that is right for everyone. The Bank of Israel requires at least one third fixed (unlinked or CPI-linked) and up to two thirds at a variable rate. A classic mix: 33% Prime, 33% fixed unlinked, 33% variable every 5 years. It is best to consult an independent mortgage advisor (not one on the bank's behalf).

Banks in Israel usually approve a repayment ratio of up to 40% of net disposable income. However, it is recommended not to exceed 30% to keep a reasonable quality of life and the ability to handle unexpected expenses (education, health, vacation, savings).

Single home: exemption up to about ₪1.97 million, then 3.5%, 5%, 8%, 10% in brackets (2026). Investment home (investor): 8% purchase tax from the first shekel up to about ₪6 million, and 10% above that - with no exemption.

A longer term = a lower monthly payment, but significantly higher total interest. Example: ₪1 million at 5%: over 20 years - a ₪6,600 payment and ₪584K interest; over 30 years - a ₪5,368 payment but ₪932K interest. You pay an extra ₪348K on the same loan.

Yes, always possible. But with a fixed rate there may be an early-repayment (capitalization) fee if market rates have fallen since you took the mortgage. Variable and Prime tracks have no capitalization fee. It is worth checking first - sometimes investing the money elsewhere pays off more.

Refinancing pays off when market rates have dropped significantly since you took the loan, or when your financial situation has improved. The rule: weigh the monthly saving against the cost of refinancing (early-repayment fee + fees). If the break-even point occurs within 12-36 months and the total saving is positive, it is usually worthwhile. Use the refinance calculator in the tab above.

A stress test checks what happens to your monthly payment if the rate rises by 1%, 2% or 3%. Prime and variable tracks are not fixed - a Bank of Israel rate hike makes them more expensive immediately. On a ₪1.5 million mortgage over 25 years, a 3% rise can add hundreds of shekels a month. Make sure you can handle the payment even in the worst case - check it with the stress test calculator in the tab above.