The Complete Guide to Your Mortgage in Israel

The Complete Guide to Your Mortgage in Israel

When it comes to purchasing a property in Israel, navigating the intricacies of mortgages in Israel is a vital step towards achieving homeownership. A mortgage serves as a financial bridge, making homeownership a reality for many. Unlike conventional loans found in many other countries, the Israeli mortgage landscape is characterized by unique features and options.

This comprehensive guide will walk you through the nuances of obtaining a mortgage in Israel, from the various types of mortgages available to the steps involved in securing one.

Types of Mortgages in Israel
Before diving into the application process, it’s crucial to grasp the different mortgage options available.  In Israel, three primary types stand out: Tamhil, Interest Deduction, and Age-Restricted mortgages, etc.

Tamhil: A Blend of Opportunities
In contrast to the single-loan structure commonly seen in other countries, Israeli mortgages consist of a combination of smaller loans, each carrying different interest rates and terms. This intricate arrangement is referred to as Tamhil. Within the Tamhil framework, multiple routes exist, allowing borrowers to tailor their mortgages to their financial preferences and risk tolerance.

No Interest Deduction mortgages
These cater to those ineligible for tax deductions, unlike certain countries where mortgage interest can be tax-deductible, Israel does not offer this benefit, even for self-employed individuals working from home. This peculiarity shapes the financial landscape of Israeli mortgages, influencing how borrowers approach their financial planning.

Age-Restricted mortgages
Another requirement distinctive to Israeli mortgages is the stipulation that borrowers must fully repay their loans by a specific age range, generally around 80 to 85 years. This requirement adds an additional layer of consideration for individuals approaching retirement or planning their long-term financial stability.

Applying for a Mortgage

Securing a mortgage in Israel involves a systematic approach. The application process requires presenting a range of documents that cater to your specific status and country of origin. These documents typically include the mortgage application form, identification (Israeli or foreign), bank statements from all checking accounts, credit score, and income verification in the form of pay slips, income tax returns, or annual income summaries.

Mortgage Loan Amounts in Israel

Loan amounts in Israel vary depending on several factors, including the property’s value, your financial capacity, and the lender’s policies. Generally, lenders offer up to 75% of the property’s value, but this can be influenced by the type of mortgage and your individual circumstances. For example, First-property buyers can access up to 75% LTV, while additional properties are eligible for 50% LTV. Non-Israeli residents, however, are limited to a maximum of 50% LTV.

In-depth look into Rates and Tamhil

Understanding the nitty-gritty of mortgage rates is essential. Israel offers a range of options, including Prime Interest, CPI-Linked Fixed Interest Rates, CPI-Linked Interest at Variable Rates, and Interest Linked to Foreign Currency. Each option comes with its pros and cons, and selecting the right one depends on your financial goals and risk tolerance. Israeli mortgage options encompass a diverse array of interest rates and loan characteristics. These include:

Getting Pre-Approved

Before embarking on your property search, obtaining pre-approval for a mortgage is advisable. Pre-approval gives you a clear idea of your budget strengthens your bargaining power and allows you to accurately budget based on your borrowing capacity before property hunting. Securing a mortgage in Israel starts with assembling a Tamhil combination. With this in place, the bank provides preliminary approval valid for a specific period.

Finding the Right Property

With pre-approval in hand, you can start your property hunt with confidence. Focus on properties that align with your budget and preferences. Real estate agents can provide invaluable assistance in locating properties that match your criteria, especially in Israel when searching for properties online, which can be challenging for non-Hebrew speakers.

Property Appraisal

Once you’ve identified a property, a thorough appraisal is conducted to determine its market value. The bank requires an appraisal conducted by an approved appraiser. While the cost ranges from NIS 500-1000, it’s a necessary step to determine the property’s market value.

Finalizing a Loan and Mortgage Insurance

After settling on a property and receiving the lender’s approval, the finalization process begins. This involves opening a file with the bank, paying a fee, and signing the mortgage agreement. Upon signing the mortgage agreement, mortgage insurance, covering life and property, becomes a requirement. While the cost is reasonable, it adds an essential layer of protection.

Mortgage Broker or DIY?

Deciding whether to use a mortgage broker or navigate the process independently is a significant consideration. A mortgage broker can offer expertise and streamline the process, but going the DIY route may save you a broker fee. At the end of the day it’s your decision, just consider that the expertise a broker offers may save considerable money in the long run.

Conclusion

Obtaining a mortgage in Israel is a journey that demands careful consideration and meticulous planning. It requires a solid understanding of the unique features it offers, such as the various mortgage types, rates, and application process, so that you can confidently step into the world of homeownership. Whether you’re a first-time buyer or a seasoned investor, this guide equips you with the knowledge needed to make informed decisions on your path to acquiring property in Israel. Enlisting professional guidance can enhance your mortgage journey, helping you secure a suitable deal and successfully become a homeowner in Israel.

Tanya Harel | Aug 29, 2023

 Lev Haair, Tel Aviv center

Lev Haair – Tel Aviv Center

Lev Haair contains some of Tel Aviv’s most beautiful buildings, being at the center of the UNESCO-designated “White City”

Lev Hair is the most wanted area in Israel’s metropolitan area, Tel Aviv. The city center (Lev Hair), attracts people from all over the world, to come and explore the white city. Tel Aviv

The most prestigious street, in the city center /  Lev Ha air is Rothschild Boulevard, with a wide tree-lined strip that has pedestrian and bicycle lanes. Around this area, you can find all Tel Aviv luxury towers, like 1 Rothschild, 30 Rothschild, Mieir Tower, and the upcoming Rothschild 10 which will be part residential part Six Senses Hotel. Rothschild Boulevard is one of the city’s oldest streets and is in the center of Tel Aviv’s financial district, Lev hair is full of almost 4,000 Bauhaus-style buildings that named the city “The White City”. In Lev Hair, you can find Habima Square is home to cultural institutions, Sheinkin Street, Here You can find upscale boutiques, cafes, and restaurants. Also in Lev Hair, you can find Carmel Market, the largest outdoor market in Tel Aviv. Lev Hair borders are on the north by Habima Square, on the west by Menachem Begin Boulevard, east by King George St, and on the south by Nahalat Binyamin.

Rothschild Boulevard

Rothschild Boulevard is one of the principal streets and one of Lev Hair’s attractions in the center of Tel Aviv, Israel, Rothschild Boulevard begins in Neve Tzedek and runs north to Habima Theatre. It is one of the most expensive streets in the city, being one of the city’s main tourist attractions.

The Habima Theatre

The Habima Theatre is the national theatre of Israel. It is located in Habima Square at the end of Rothschild Boulevard in the center of Tel Aviv. all the productions at Habima Theater are in Hebrew, many are translated simultaneously into English. Habima Theatre Originally founded in 1913 in Moscow, it was one of the first Hebrew language theaters in Israel. It moved to its current location in Tel Aviv in 1928.

Restaurant in Lev Hair

Café Noir – 43 43 Ahad Haam st

Hotel Montefiore – 36 Montegiore st.

Cantina – 71 Rothschild Blvd

Miznon – 23 Ibn Gabriol st.

Attractions in Lev Hair

The Best Parks in Tel Aviv

The Best Parks in Tel Aviv – green spaces within the bustling white city

The melting pot that makes up Tel Aviv can boast about its beaches and sea views; however, you may be surprised to know that among the city filled with modern skyscrapers and bustling streets, this city has a surprisingly large number of parks and green spaces. These parks provide a welcome retreat from the urban hustle and bustle. Let’s explore some of the best parks in Tel Aviv, offering residents and visitors a chance to reconnect with nature in the heart of the city.

Neve Tzedek Park

Nestled in the heart of the historic Neve Tzedek neighborhood, this park is a hidden gem. Neve Tzedek itself is an enchanting area known for its picturesque architecture and quaint streets. The park is an extension of this charm, offering a peaceful oasis with well-maintained lawns and a variety of colorful flowers. It’s a perfect spot for a leisurely stroll or a relaxing picnic, all while immersing yourself in the history and culture of Tel Aviv.

American-German Colony Garden

Located in the heart of the American-German Colony, this park is a testament to Tel Aviv’s multicultural heritage. Here, you can explore a beautifully landscaped garden with a mix of local and exotic plants. The park also features historical landmarks, including preserved houses from the early 20th century, giving visitors a glimpse into the city’s rich past. It’s a tranquil place to enjoy nature and history simultaneously.

Park Hayarkon

There is no discussion that Tel Aviv’s green spaces could not be complete without mentioning Park Hayarkon. Stretching along the banks of the Yarkon River, this expansive park offers a wide range of activities for visitors of all ages. From jogging and cycling paths to playgrounds and picnic areas, there’s something for everyone. The park even has a water park and boating facilities, making it a perfect destination for a day of outdoor fun.

Independence Park

This park lies just above Tel Aviv’s stunning coastline, Independence Park is an excellent choice for those seeking a park with a view. With its elevated location, this park provides panoramic views of the Mediterranean Sea, making it an ideal spot to watch the sunset. Its lush greenery and comfortable benches make it a prime location for relaxation and reflection and just an easy stroll down to the boardwalk and beach.

In a city that has so much to offer, it is nice to know that the grass is greener, maybe quite literally when it comes to Tel Aviv’s commitment to preserving green spaces within its urban landscape. It ensures that residents and visitors alike can escape the city’s fast pace and enjoy the serenity of nature. Whether you’re strolling through the historic Neve Tzedek Park, immersing yourself in the multicultural ambiance of the American-German Colony Garden, exploring the diverse offerings of Park Hayarkon, or enjoying the seaside charm of Independence Park, these green spaces offer a refreshing balance to the vibrant city life of Tel Aviv. Don’t miss the opportunity to experience these beautiful parks and make them a part of your day when living and visiting the vibrant city of Tel Aviv.

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Your guide to the Israeli Real Estate market

Your ultimate guide for the Israeli Real Estate market

If you have just arrived in Israel in search of investing in a property or you’re already living here and are ready to take the plunge into becoming a property owner, then it is important to know the playing field as to what types of properties are out there and how the real estate market in Israel divides these properties. Below, we’ll explore the various property types available in the Israeli real estate market to help you make informed decisions when embarking on your property search.

Types of Properties

When looking for a property, note that in Israel the living room is counted as another room, meaning if you need a 3-bedroom apartment you are in fact looking for a 4-room apartment. A local real estate agent will be able to guide you through the differences in property types as well but for now, here are the main ones.

Apartments

Apartments are the most common property type in Israel, especially in urban areas like Tel Aviv. They come in various sizes, from compact studios to spacious penthouses. Apartments are typically situated in high-rise buildings and offer a wide range of amenities, including 24/7 security, parking, and communal areas. They are ideal for individuals, couples, and small families looking for a modern and convenient lifestyle. There are also the gems within the American-German Colony neighborhood or Neve Tzedek where the buildings offer a more authentic architectural feel.

Duplex Apartments

Duplex apartments are essentially two-level apartments connected by an internal staircase. They offer the advantage of separate living areas on each level, providing more space and privacy. Duplexes are ideal for families or individuals who appreciate the layout of a house but prefer the convenience of apartment living. Sometimes one may even find a Triplex which is, as the name suggests, a three-level apartment.

Garden Apartments

Usually situated on the ground floor, it’s an apartment that offers an entrance into a yard. These types of apartments can be one floor or be part of a duplex.

Penthouses

Penthouses are luxury apartments. They may be at the very top of the building or be comprised of connecting two adjoining apartments and sometimes an entire floor. They often boast panoramic views of the city or sea and come with spacious terraces or rooftop gardens. Penthouses are coveted for their exclusivity, making them a choice for those seeking a prestigious urban lifestyle.
There is also what is known as the “mini penthouse”, which is usually at the top of a building and a bit larger in size than a regular apartment plus a large terrace.

Villas and Houses

For those seeking more space and privacy, villas and houses are popular choices. These properties often come with private gardens, yards, and sometimes even swimming pools. Villas and houses are suitable for larger families or individuals who value outdoor living spaces and tranquility. You can find villas and houses in suburban areas, towns, and rural regions across Israel. In Tel Aviv, you can find these sprinkled throughout parts of the city as well, whether in the Old North or in the heart of Neve Tzedek.

Investment Properties

Israel’s real estate market is also rife with investment opportunities. These can include small apartments, commercial properties, or rental units within apartment complexes. Investors look for properties that provide consistent rental income or appreciate over time, capitalizing on Israel’s strong real estate market.

Conclusion
Israel’s real estate market is as diverse as the country itself, offering a wide range of property types to cater to various lifestyles and preferences. Whether you’re considering purchasing property in the bustling streets of Tel Aviv, the historical neighborhoods of Jerusalem, or the serene landscapes of Galilee, understanding the different property types is essential. If you want to know more it is always a good idea to speak with a real estate agent who has knowledge of the market and specific property types.

Tanya Harel | Aug 27, 2023

Best restaurants in Tel Aviv

There’s a favorite eatery for everyone!

The restaurant and food scene in Tel Aviv is renowned, for its medley of Middle Eastern flavors and a new mix of flavors. There are many restaurants and young chefs paving their culinary path right into our enjoyment. With so many choices, there is an eatery that will suit anybody’s wishes, whether it’s a dinner date or lunch out with the family and kids. The Neve Tzedek area and its vicinity stand out as a culinary paradise. This historic neighborhood, with its charming streets and artistic flair, is home to some of the city’s most remarkable restaurants. Let’s take a look at some of the

Romano

Romano is a beloved institution in Tel Aviv’s culinary scene. Known for its delectable Israeli Mediterranean cuisine, this restaurant offers a vibrant atmosphere and a trendy, casual vibe. It is located behind a hidden, graffiti door and is part of Eyal Shani’s empire (Tel Aviv’s most famous chef).  With its creative dishes and lively ambiance, Romano is the perfect spot for a memorable evening out. Be sure to make reservations, especially if you plan to dine after 9 p.m..

Port Said

If you’re looking for a hip and energetic dining experience, Port Said is the place to be. Situated in the heart of Neve Tzedek, this restaurant offers Middle Eastern and fusion cuisine that will tantalize your taste buds. The bustling atmosphere and communal seating create a vibrant social scene. While walk-ins are welcome, it’s a good idea to arrive early or be prepared for a wait, as Port Said is a popular spot.

Dallal

For an intimate and charming dining experience, Dallal is a standout choice. This restaurant in Neve Tzedek combines French and Mediterranean flavors with an elegant ambiance. With its beautiful courtyard setting, Dallal is perfect for a romantic dinner or a special celebration. Reservations are highly recommended to secure a table at this sought-after establishment.

George and John

George and John is a culinary gem nestled near Neve Tzedek, offering a contemporary Mediterranean dining experience. With its elegant and modern ambiance, this upscale restaurant is a go-to destination for those seeking refined cuisine in a stylish setting. The restaurant was voted the 6^th best in Israel in 2023 and showcased the best Mediterranean flavors with a contemporary twist. Reservations are highly recommended to ensure you secure a table at this sought-after establishment.

M25

Located near the vibrant Carmel Market, M25 is a culinary gem offering Israeli fusion cuisine in a lively and eclectic setting. This casual eatery is ideal for those looking to explore unique flavor combinations in a relaxed atmosphere. While reservations are not necessary, M25 is popular among locals and tourists alike, so consider arriving early to secure a table.

Milgo & Milbar

Nestled on the lively Rothschild Avenue in Tel Aviv, Milgo & Milbar offers a unique blend of casual fine dining and an energetic atmosphere. With vibrant music setting the tone and an open kitchen for showroom cooking, this restaurant creates an experience that’s as lively as it is delicious. Chef Moti Titman, crafts contemporary dishes deeply rooted in Tel-Avivan flavors.

Tel Aviv’s food scene and nightlife are great every night of the week and the variety of restaurants showcases a fusion of flavors that celebrate the essence of this city. In the Neve Tzedek area and its vicinity, one can find restaurants that offer a diverse range of culinary experiences, from casual and trendy to elegant and romantic. Whichever you choose, you’re sure to savor the vibrant flavors of Tel Aviv’s food scene in this picturesque neighborhood. Don’t miss the opportunity to dine at these exceptional establishments during your visit to Tel Aviv or as a reason to live nearby.

Tanya Harel | Sep 10, 2023