How much deposit do I need to buy in Israel?
The deposit question comes before every other one: it sets the price you can aim for. In Israel the answer depends on your status with the Bank of Israel and the Tax Authority, not on which bank you pick. Here are the three rates, the costs to add, and what it comes to in shekels on two budgets.
The short answer
As of November 2026, the minimum deposit to buy in Israel is 25% of the price for a resident buying a first home (loan capped at 75% by the Bank of Israel), 30% for a replacement home (70% loan), and 50% for an investor or a non-resident buyer (50% loan). On top of the deposit come purchase tax and fees, never financed by the bank: 4 to 6% of the price for a resident buying their only home, 11 to 13% for a non-resident or investor (8% tax plus 3 to 5% of fees). On a ₪2M property, a resident first-time buyer therefore needs about ₪580,000 in cash; a non-resident, about ₪1,240,000.
The figures to remember, November 2026
- Resident, first home
- 25%
- Replacement home
- 30%
- Investor or non-resident
- 50%
- Tax and fees on top
- 4–13%
Three deposit rates by profile
The financing caps are set by the Banking Supervisor at the Bank of Israel, not by each bank. They apply to the lower of the contract price and the appraisal by the shamai (licensed appraiser). There is no 3.5% FHA-style route, no 5% UK scheme and no mortgage insurance that unlocks a smaller deposit.
| Profile | Maximum loan | Minimum deposit | Note |
|---|---|---|---|
| Resident, first home (dira yechida) | 75% | 25% | The most favourable profile |
| Resident, replacement home | 70% | 30% | Old home sold within 18 months |
| Resident, additional home (investor) | 50% | 50% | Purchase tax at 8% |
| Non-resident | ≈ 50% | ≈ 50% | Bank risk policy, not the directive |
| Israeli citizen abroad or aliyah within 2 years | 70–75% | 25–30% | Treated as a resident first-time buyer |
The non-resident is not named in the directive: banks treat them as an investor and stop at 50%. An oleh or a citizen who relocates goes back up to 70-75%. Beyond the cap, the bank checks that the monthly payment stays under 35 to 40% of net income: with a small deposit and average income, it is often this second test that limits the price, not the first. The mortgage calculator runs both.
The costs to add to the deposit
None of these items is financed by the bank. They come out of your own cash, on top of the deposit.
- Mas rechisha (purchase tax): 0% up to ₪1,978,745, then 3.5% and 5% for a resident on their only home; 8% up to ₪6,055,070 for an investor or a non-resident. This is the line that tips the total. Exact figure on the purchase tax calculator.
- Lawyer: 0.5 to 1% of the price + 18% VAT; capped at about ₪5,500 + VAT for an off-plan buyer.
- Real estate agent: 2% + VAT on a resale, often negotiable to 1-1.5%; nothing on a new build bought directly from the developer.
- Mortgage broker: ₪6,000 to ₪15,000, or 0.5 to 1% of the loan.
- Bank: file-opening fee ≈ 0.25% of the loan (negotiable), appraisal ₪600 to ₪1,500. No points, no origination fee, no title insurance.
- Buyer abroad: translations, power of attorney, apostille, ₪2,000 to ₪6,000.
The line-by-line detail, with the room for negotiation, is in what buying really costs.
Cash needed on ₪2M and ₪3M
| Profile | ₪2,000,000 property | ₪3,000,000 property |
|---|---|---|
| Resident, first home (25% down) | 500,000 + 744 + ≈ 80,000 = ≈ ₪581,000 | 750,000 + 45,538 + ≈ 114,000 = ≈ ₪910,000 |
| Resident, replacement home (30% down) | 600,000 + 744 + ≈ 80,000 = ≈ ₪681,000 | 900,000 + 45,538 + ≈ 114,000 = ≈ ₪1,060,000 |
| Resident investor (50% down) | 1,000,000 + 160,000 + ≈ 78,000 = ≈ ₪1,238,000 | 1,500,000 + 240,000 + ≈ 112,000 = ≈ ₪1,852,000 |
| Non-resident (50% down) | 1,000,000 + 160,000 + ≈ 82,000 = ≈ ₪1,242,000 | 1,500,000 + 240,000 + ≈ 116,000 = ≈ ₪1,856,000 |
Read the other way, which is more useful: with ₪600,000 of cash, a resident first-time buyer can aim at a property of about ₪2.05M, a non-resident at about ₪970,000. With ₪1.5M, the first reaches ₪5M if income allows, the second ₪2.4M. An oleh, with the 0.5% tax and a 75% loan, sits close to the resident: see buying as a new immigrant.
Where the deposit goes at signing
The deposit is not paid in one go. The heskem mechira (sale contract) sets a payment schedule, and your lawyer negotiates it. There is no escrow company: the lawyers’ trust accounts play that role.
- At contract signing: a first payment of 10 to 20% of the price, by bank cheque or wire, usually into the seller’s lawyer’s trust account or directly to the seller. Right after, your lawyer registers a hearat azhara (cautionary note) at the Tabu, which blocks any other sale or mortgage on the property. No money should move before that registration.
- Interim payments: the rest of the deposit, often in one or two instalments over 30 to 90 days, while the bank finalises the mashkanta. If the seller has a mortgage, part goes straight to their bank to release it.
- Key handover: the bank releases the loan against the signed transfer documents; the last payment and the keys are simultaneous. Off-plan, the schedule follows construction progress, 20/80 being common in 2025-2026.
The full sequence, with the checks at each step, is in how to buy property in Israel, step by step.
Proving the source of funds
Bank and lawyer apply the anti-money-laundering law: every shekel of deposit must have a documented origin. For an employee, three to six months of statements are enough if savings built up gradually. For a recent lump sum, the matching document is required: deed of sale of a property, gift letter, family loan agreement, probate papers, confirmation of a brokerage account liquidation. Israeli banks refuse cash and funds arriving from unidentified third-party accounts, and a wire from certain countries triggers extra checks lasting several weeks.
For a buyer abroad, the most efficient approach is to prepare this file before the pre-approval, in English, and to route the money through the lawyer’s trust account or a currency broker who hands the Israeli bank its own confirmation. The rest of the remote logistics is in buying property in Israel from abroad.
Frequently asked questions
Can I buy in Israel with a 10% deposit?
Not through a bank: the Bank of Israel caps the loan at 75% of the price, so 25% down is the minimum, and a non-resident is in practice limited to 50%. The only routes at 10-15% are developer financing off-plan (a 20/80 schedule that leaves two or three years to gather the rest) and non-bank lenders at markedly higher rates.
Does the deposit include purchase tax and fees?
No. The deposit is the share of the price the bank does not finance. Mas rechisha (purchase tax), lawyer, agent, broker and bank fees come on top and are never financed by the mortgage. On ₪2M as a non-resident, count ₪1,000,000 down plus about ₪242,000 of tax and fees, so ₪1.24M of your own cash.
Does a family gift count as deposit?
Yes, and it is common. The bank asks for a signed gift letter (or a notarised deed, depending on the bank) stating that the sum is not a loan, plus the donor’s statement showing where the money came from. A family loan is also accepted, but its repayment goes into the payment-to-income calculation.
Does the deposit already have to be in shekels in an Israeli account?
Not for the pre-approval, which is done on foreign statements. It must be available when payments to the seller fall due, by international wire to the lawyer’s trust account or to your Israeli account. Allow 3 to 7 days per transfer and compare the bank’s exchange rate with a currency broker’s.
How we work
Every amount, bracket and rate on this page is checked against the official source listed at the bottom and dated. When a schedule or rate changes, the page is updated within days. Our methodology.
Sources
Is your deposit enough for the property you have in mind?
An English-speaking mortgage broker works out how much the banks will lend you, and therefore the maximum price your deposit allows. Tell us your cash, your income and the city.