The Directive 329 ceilings
These are limits on the bank, not an offer. The ceiling applies to the lower of the appraisal and the contract price.
| Buyer profile | Purchase tax schedule | Largest loan |
|---|---|---|
| Foreign resident | Foreign resident or additional home | 50% |
| Qualifying buyer abroad, sole home | Foreign resident or additional home | 75% |
| Israeli resident, sole home | Israeli resident, sole home | 75% |
| Israeli resident, additional home | Foreign resident or additional home | 50% |
| Qualifying oleh, sole home | Oleh, sole home (regulation 12A) | 75% |
- Repayments may not pass 50% of income, a hard cap. Above 40% the bank must hold more capital, which is why the calculator shows both.
- The longest term is 30 years.
- Value used: the lower of the appraisal and the contract price, or the expected cost of a home under construction.
Residency and the legal definition set the loan ceiling
Directive 329 imports the definition in section 16A of the Land Taxation Law, including residency and specified population-register categories. A qualifying buyer of a sole home can borrow up to 75%; a foreign resident under that definition is limited to 50%.
An Israeli citizen living abroad can be a foreign resident. A foreign citizen living in Israel can be a resident. Passport alone does not decide. A sole-home buyer abroad can reach 75% only if the bank confirms that they meet the directive's definition. Purchase tax has its own residency assessment.
The buyer-abroad and oleh profiles assume that the bank confirms eligibility under the directive. Citizenship or aliyah alone does not establish eligibility. Ask the bank in writing how it will classify you when the loan is approved and executed.
What the bank does not finance
The bank lends against the lower of its appraisal and the contract price, and you fund the rest. It does not finance purchase tax, and legal, appraisal and bank costs come on top. The calculator adds equity and purchase tax and shows the total as cash needed before fees.
Banks add their own credit policy to the directive, especially for income earned abroad, so the ceiling is a maximum and the offer may be lower. Expect to document identity and income from every country where you earn.
Start with an approval in principle. Under Bank of Israel Directive 451 a bank must answer a mortgage request within five business days and hold the rate it quotes for at least 24 days from the approval.
Questions about mortgages for foreigners
Can a foreign citizen or non-resident get a mortgage in Israel?
Yes, within a ceiling. If you are a foreign resident under the directive's definition, an Israeli bank can lend at most 50% of the lower of the price and the bank's appraisal. Banks add their own credit policy on top, especially for income earned abroad, so the offer may be lower than the ceiling.
How much can a foreign resident borrow on ₪6,800,000?
At 50%, the largest loan is ₪3,400,000 and the equity is the same amount. Purchase tax is about ₪558,899, which the bank does not finance, so cash needed before legal and bank fees is about ₪3,958,899.
I am an Israeli citizen living abroad. Can I borrow 75 percent?
You can reach 75% only if you meet the directive's legal definition and buy a sole home. An Israeli citizen living abroad can be a foreign resident and be limited to 50%. A foreign citizen living in Israel can be a resident. Ask the bank to confirm your classification under section 16A of the Land Taxation Law. Purchase tax is assessed separately.
How much income does the bank need to see?
Repayments may not pass 50% of income, and above 40% the bank must hold more capital. On the largest loan for ₪6,800,000 at an illustrative 5% a year over 30 years, the repayment is about ₪18,252 a month, so the bank would need documented net disposable income of at least about ₪36,504 a month, and more to stay under 40%.
Does the bank finance the purchase tax?
No. The bank does not finance purchase tax, and legal, appraisal and bank costs come on top of the equity. That is why the calculator adds purchase tax to the equity to show the cash you need.
How long can the term be?
Directive 329 sets the longest term at 30 years. The interest rate in the calculator is an illustration, not a quote, and your bank sets the rate it offers.
What do Israeli banks ask of a non-resident borrower?
Expect to document identity and income from every country where you earn: recent payslips or employer letters, tax returns filed abroad, bank statements showing the income arriving, a credit report from your home country and a statement of your assets. Documents in other languages usually need translation and sometimes notarisation.
Sources
Each link opens the publication the figures on this page were read from.
- Bank of Israel, Directive 329 on housing-loan limits, version 13 (circular 2852)
- Bank of Israel, circular 2840 amending Directive 329
- Bank of Israel, questions and answers on Directive 329
- Bank of Israel, Directive 451 on housing-loan procedures
- Finance Family, documents banks request from non-residents
- Israel Tax Authority, Execution Instruction 1/2026 (purchase tax)
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