Mortgage for an Apartment in Jerusalem 2026 - Complete Guide, Rates, and Banks | חדשות נדל"ן | מרכז הנכסים
Mortgage Market in Jerusalem 2026
The mortgage market in Israel in 2026 is stabilizing after the interest rate wave of 2022-2024. The Bank of Israel is gradually lowering rates, and the market is responding. Bank of Israel rate: 4.25% (April 2026), Prime: 5.75%. For a mortgage in Jerusalem, this means: Prime rates -0.5% to -0.7%, fixed rates 4.5%-5.0%, linked to index 3.2%-3.8%.
Main Tracks
Prime (Variable)
Interest rate of Bank of Israel + margin. Usually in 2026: Prime -0.5% to -0.7%. Advantage: Flexibility, no prepayment penalty. Disadvantage: Payment is affected by interest rate changes.
Fixed Non-Linked
Interest rate of 4.5%-5.0% for 30 years. Advantage: Absolute certainty. Disadvantage: More expensive if rates continue to fall.
Fixed Linked to Index
Interest rate of 3.2%-3.8% + linkage to the index. Advantage: Low nominal interest rate. Disadvantage: Principal increases with inflation.
Recommended Mix for a 2M ₪ Mortgage in 2026
| Track | Amount | Rate | Percentage |
|---|---|---|---|
| Prime | 700,000 | ~5.15% | 35% |
| Fixed Non-Linked | 900,000 | ~4.75% | 45% |
| Fixed Linked to Index | 400,000 | ~3.50% | 20% |
| Weighted Average | 2,000,000 | ~4.6% | 100% |
LTV - How Much Can You Take
- First Apartment (Resident/Immigrant): Up to 75% LTV
- Second Apartment (Investor): Up to 50% LTV
- Non-Resident / Not a Resident: Up to 50% LTV
- Alternative Apartment (Selling First Apartment): Up to 70% LTV, 30% within 24 months
Leading Banks for Jerusalem 2026
- Bank Leumi - Large market share, diverse mixes
- Bank Hapoalim - Expertise in new immigrants
- Mizrahi Tefahot Bank - Dedicated mortgage company, efficiency
- Discount Bank - Flexible solutions
- Bank of Jerusalem - Jerusalem market experts
Monthly Payment Calculation
| Mortgage Amount | Period | Average Rate | Monthly Payment |
|---|---|---|---|
| 1,500,000 | 25 years | 4.6% | 8,400 ₪ |
| 1,500,000 | 30 years | 4.6% | 7,700 ₪ |
| 2,250,000 | 30 years | 4.6% | 11,550 ₪ |
| 3,000,000 | 30 years | 4.6% | 15,400 ₪ |
Repayment Ratio
The bank will check the repayment ratio - the percentage of monthly repayment from net income. Maximum ratio: 40% (standard), 50% with concessions. To repay 11,550 ₪, a net income of at least 29,000 ₪ is needed.
New Immigrants - Additional Advantages
- Up to 75% LTV (like a resident)
- Some banks offer preferential rates for immigrants
- Option to take part of the mortgage in dollars (for immigrants from the USA/Canada)
- English-speaking mortgage advisors
See Guide to Buying an Apartment for Immigrants.
Working with the Property Center
Jerusalem Branch recommends leading mortgage advisors. See Guide to Associated Costs and Guide to First Purchase.