Tool
Olim Mortgage Calculator (Israeli Mishkanta with New-Immigrant Benefits)
Calculate an Israeli mortgage with Olim-specific benefits — Misrad HaShikun subsidies, mas rechisha exemption, and lower bank rates.
Israeli mortgages (mishkanta) operate differently from US, UK, or Canadian equivalents and Olim regularly underestimate the differences. Down-payment requirements are higher (typically 25%+ vs 5–10% in the US). Loan structure usually splits across multiple components (variable / fixed-prime / fixed-Madad-linked / Madad-linked-variable) rather than a single fixed-rate. Maximum loan-to-value depends on whether this is your first home (75% LTV) vs investment property (50% LTV) vs first home for a buyer with no other property in Israel (75% LTV with slight subsidy).
Olim get specific mortgage benefits worth potentially ₪50K–₪150K over the life of a 30-year mortgage. (1) Misrad HaShikun subsidized loan: available in years 1–7 of residency, fixed reduced rate, capped amount (~₪200K to ~₪400K depending on family configuration), can stack with bank mortgage. (2) Bank rate preference: most Israeli banks offer Olim rates roughly 0.25–0.5% lower than standard rates as part of relationship-banking packages. (3) Mas rechisha (purchase tax) exemption: first home purchases up to ~₪1.92M (current threshold) by Olim within first 7 years of residency are exempt from purchase tax — this alone saves ₪19K–₪57K depending on purchase price.
The calculator runs the full Israeli mortgage stack: base loan with Olim rate preference, optional Misrad HaShikun subsidy stacking, mas rechisha calculation with Olim exemption, plus monthly costs (arnona, va'ad bayit, building insurance). It outputs monthly payment, total interest paid, breakeven vs renting at current market rents, and an amortization schedule showing principal vs interest split over time.
Critical Olim notes: the 25% down-payment requirement is real and not negotiable (Bank of Israel regulation, not bank discretion). Madad-linked components inflate with the consumer price index — they look attractive on paper but compound during inflationary periods. For budget context once you own, use the Monthly Budget Calculator; for evaluating whether to buy or rent now, this calculator includes a rent-vs-buy breakeven analysis.
Loan Parameters
Adjust the values below to match your scenario. Results update in real time.
Property Price
₪2,000,000
Down Payment
25% (₪500,000)
Annual Interest Rate
4.5%
Loan Term (years)
25 years
Government Mortgage (Mashkanta Memutzaat)
Olim may be eligible for a government-backed loan at a reduced interest rate
₪8,337
Monthly Payment
₪1,001,246
Total Interest (40.0% of payments)
₪3,001,246
Total Cost of Property
Cost Breakdown
Property Price
₪2,000,000
Down Payment (25%)
₪500,000
Loan Amount
₪1,500,000
Total Interest
₪1,001,246
Mas Rechisha (Olim Discount)
₪700
Total Cost
₪3,001,946
Principal vs Interest
Total
₪3,001,246
Principal
Interest
How does a Spitzer (fixed-payment) mortgage work?
In the Spitzer method, the most common in Israel, your monthly payment stays the same throughout the loan. Early on, most of the payment goes toward interest. Over time, a larger share goes to principal. This is equivalent to a standard fixed-rate amortizing loan.
Olim mortgage benefits
New immigrants may qualify for a government-backed mortgage (Mashkanta Memutzaat) of up to 200,000 NIS at a reduced interest rate. Additionally, olim receive a significant discount on Mas Rechisha (purchase tax), with the first ~1.98M NIS exempt from tax entirely.
Down payment requirements for Olim
While standard buyers must put down at least 25-30%, olim may qualify for lower down payments (as low as 5-15%) through special bank programs and government support. Check with your bank and mortgage advisor for current eligibility.
שתפו:
Frequently asked questions
Mishkanta is the Hebrew word for mortgage. Mechanically similar to a US/UK mortgage but with three notable differences: (1) loans almost always split across multiple rate components (a "package" of fixed + variable + Madad-linked slices), (2) Madad-linked options inflate with the consumer price index, (3) payment frequency can be monthly or bimonthly. Otherwise the structure (secured against the property, foreclosure mechanics, refinance rules) is broadly similar.
Prime-rate components reset with Bank of Israel changes — typically the most variable. Madad-linked components have a base rate plus an inflation adjustment tied to the Madad (Israeli CPI) — they look stable but the principal grows with inflation. Fixed-shekel components have a constant rate for the loan term — most predictable but typically the highest rate. A typical mortgage package might be 1/3 prime variable + 1/3 fixed-Madad-linked + 1/3 fixed-shekel for risk diversification.
Eligibility: you must be within your first 7 years of Israeli residency, this must be your first Israeli property purchase (no co-ownership of other Israeli residential property), and the purchase price must be below the current threshold (~₪1.92M). The exemption applies to the first ~₪1.92M of purchase price; amounts above pay graduated rates. Apply through your lawyer at the time of purchase; the discount is processed automatically given proper documentation.
Most properties yes, with some restrictions. The loan can be used for first home purchase (new construction or existing), and in some cases for home-renovation. It cannot be used for investment properties or vacation homes. The property must be in Israel and intended as primary residence. Loan amounts vary by family size and city tier; periphery cities sometimes get larger subsidies as part of regional development incentives.
Possible but the Olim benefits typically only apply to the Olim partner's share. Mas rechisha exemption is calculated on your portion of ownership; if you own 50% and your partner is non-Olim, you get exemption on your half. Misrad HaShikun loans similarly count against the Olim partner's eligibility. Israeli banks typically structure the mortgage as joint with both partners on the loan, but the Olim rate preference may apply more weakly than for a fully-Olim household.
Related reading
How an Israeli mortgage package is structured
The components of a typical mishkanta — prime, fixed-shekel, Madad-linked — and how to balance them.
Mas rechisha and the Olim exemption
How purchase tax works in Israel and how to claim the new-immigrant exemption.
How much can you borrow as an Oleh
How banks size your loan against income, foreign assets, and the standard down-payment ratio.
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