How this works
For contracts signed from 7 July 2022, section 5C starts with no index linkage or interest, except lawful late-payment interest. The parties may agree to link at most 50% of each payment to the Construction Input Index, after the first 20% of the price paid at signing or before any other payment stays unlinked. At most 40% of the price is therefore linked. Less linkage may be agreed.
Linkage ends no later than the contract delivery date. Section 5C(c) excepts delays covered by section 5A(c): delay caused solely by the buyer, or contractual frustration under section 18(a). This planner models on-time payments and delivery. It does not price those exceptions or overdue interest.
The Bank of Israel's 2025 measures require extra bank capital for projects with deferred-payment contracts above 25%. Current Directive 329, section 8A, caps developer-subsidised bullet and balloon loans at 10% of a bank's relevant quarterly housing-loan originations, through 31 December 2026. It is a bank-wide restriction. The scheduled expiry in 2027 is not a promise of loan availability.
The contract sets the schedule. The 20/80 and 10/90 presets reflect plans mentioned in our buyer guide. Five equal milestones are an illustration. Change the dates to your contract. A deferred payment does not guarantee that a mortgage will be available at delivery.
Worked example
At the starting price of ₪6,800,000, a 20/80 plan pays ₪1,360,000 at signing and ₪5,440,000 at delivery. Of the delivery payment, at most ₪2,720,000 is linked. With the default zero index rise, linkage adds ₪0. At an assumed half-price mortgage, final price equity is ₪3,400,000; the bank decides when it must be paid.
Questions about mortgages for foreigners
Is the whole price linked to the index?
No. The first 20% paid stays unlinked. By agreement, at most 50% of later payments may be linked, so the maximum is 40% of the price.
How is 10/90 treated?
The signing payment uses only part of the first unlinked share. The next payment uses the rest before its remaining amount is tested for linkage.
Does linkage continue if delivery is late?
Normally it ends at the date in the contract. The law has exceptions for buyer-caused delay and contractual frustration. This model assumes on-time delivery.
Can I enter my own schedule?
Yes. Choose custom, add payments, and edit every date and percentage. The percentages must total 100 and dates must fall within the signing and delivery period.
How much cash is needed before the mortgage?
The table totals payments before your assumed draw date. It also shows price equity separately if the bank requires it first. Confirm the bank's release conditions.
Is the index growth a forecast?
It is your assumption, compounded over elapsed days. Actual invoices use the contract's base index and published monthly indices. Tax and other fees are excluded.
Sources
Each link opens the publication the figures on this page were read from.
- Knesset: Amendment 9, enacted law
- Housing Ministry: Amendment 9
- Bank of Israel: current Directive 329
- Bank of Israel: 2025 deferred-payment measures
Sources checked on .
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