Israeli mortgage calculator: your mashkanta in numbers
Enter the price, your profile and the term; split the loan between prime, fixed and CPI-linked the way a bank would. The calculator applies the Bank of Israel caps and the rates observed in November 2026.
Split between tracks
Prime (variable)
Fixed, unlinked
Fixed, CPI-linked
Bank of Israel rules: at least one third of the loan at a fixed rate, at most two thirds on prime. The simulator adjusts the sliders accordingly.
- Principal repaid—
- Interest—
- Prime (variable) · Fixed, unlinked · Fixed, CPI-linked—
Indicative rates, November 2026 (policy rate 3.25%, prime 4.75%). The CPI-linked track is simulated with constant inflation; in reality both the payment and the outstanding balance move with the CPI. Banks apply different margins by profile and city: a real offer can differ by ±0.5 point.
How to read the result
The monthly payment is the sum of the three payments of each track, calculated as constant annuities (the Spitzer method, used by every Israeli bank; it is the same amortisation logic as a US or UK repayment mortgage). The total cost of the loan adds up every payment over the term; the difference with the principal borrowed is the interest, shown in the ring. The income required assumes a payment-to-income ratio of 35%, which most banks accept without discussion; between 35 and 40% it is negotiable, beyond that it is rare.
Play with the term: going from 20 to 30 years cuts the payment by about a quarter but raises the interest by half. Play with the split too: more fixed is more expensive today and safer tomorrow; more prime is the reverse. At ≈ ₪3.6 to the dollar, a ₪7,000 payment is about $1,950 a month (≈ £1,500).
The three tracks in the calculator
| Track | Rate | What moves | Who it suits |
|---|---|---|---|
| Prime (prime minus) | P − 0.3 to − 0.9 → 3.85 to 4.45% | Follows the Bank of Israel policy rate, reviewed 8 times a year. Principal not indexed. No early-repayment penalty. | Those who expect rates to fall or want to repay early. |
| Fixed, unlinked (kvua lo tsmuda) | 4.8 to 5.4% | Nothing: the same payment from the first month to the last. Possible penalty on early repayment if rates have fallen. | Those who want a certain payment, and non-residents whose income is in dollars or pounds. |
| Fixed, CPI-linked (kvua tsmuda) | 2.7 to 3.3% + inflation | The outstanding principal and the payment rise with the consumer price index (madad). Low headline rate, real cost depends on inflation (1.6% year-on-year in October 2026). | Those who want a low payment at the start and accept that it will rise. |
| Variable every 5 years (mishtana kol 5) | 4.3 to 4.9% | Rate reset every five years on a bond index. Not simulated here: treat it as fixed for 5 years. | A common compromise offered by banks. |
In practice banks offer a mix of three to four tracks. The calculator keeps three, which cover more than 80% of the loans signed.
The Bank of Israel rules the calculator applies
- Maximum loan-to-value (LTV): 75% for a resident buying a first home, 70% for a resident replacing their home, 50% for an investor or a second home. Non-residents fall under bank practice: 50% most of the time, up to 70-75% for an Israeli citizen or when aliyah is planned (see mortgage for new olim). The matching deposit, costs included, is detailed in how much deposit do I need.
- Variable share: at most two thirds of the loan at a variable rate (prime included); at least one third fixed.
- Payment-to-income: at most 50% of net income, 40% in practice.
- Term: 30 years maximum, and the loan must generally be repaid before age 75 (80 in some banks).
The calculator does not include life insurance and building insurance, both mandatory and paid separately: budget 0.1 to 0.3% of the principal per year for life cover depending on age, and ₪300 to ₪700 a year for the building. Nor does it model the payment deferrals granted in wartime, described in what happens to my mortgage during a war.
Full worked example: ₪2.5M apartment, non-resident buyer
| Down payment | ₪1,250,000 |
| Loan | ₪1,250,000 |
| Prime, ₪500,000 at 4.15% | ≈ ₪2,680 / month |
| Fixed unlinked, ₪437,500 at 5.1% | ≈ ₪2,590 / month |
| Fixed CPI-linked, ₪312,500 at 3.0% + 2% inflation | ≈ ₪1,830 / month smoothed (real starting payment ≈ ₪1,480, rising with the CPI) |
| Monthly payment | ≈ ₪7,100 |
| Net monthly income the bank expects (35%) | ≈ ₪20,300 (≈ $5,650) |
| Interest over 25 years | ≈ ₪880,000 |
At this level of financing, a broker frequently obtains 0.2 to 0.4 of a point better on prime and fixed than the branch offer, which is ₪25,000 to ₪50,000 over the term: more than their fee. Current rates, track by track, are in Israeli mortgage rates today.
Frequently asked questions
What is the maximum monthly payment an Israeli bank will accept?
The Bank of Israel caps the payment-to-income ratio at 50% of the household’s net income, but in practice banks work between 30 and 40%. Above 40%, the file is usually declined or priced higher.
Why does the calculator refuse to put 100% on prime?
Since 2011, the Bank of Israel requires at least one third of a home loan to be at a fixed rate (CPI-linked or not) and at most two thirds at a variable rate, prime included. The calculator reproduces that constraint. There is no US-style 30-year fixed for the whole loan at prime pricing.
Is the monthly payment shown the one I will actually pay?
For the prime and unlinked fixed tracks, yes, give or take the margin. For the CPI-linked track, the real payment rises with inflation: the calculator approximates it with constant inflation, which smooths what is by nature irregular.
Can a non-resident use this calculator?
Yes: choose the "Non-resident" profile. Financing is capped at 50% by default, which matches bank practice; an Israeli citizen living abroad or a buyer making aliyah within two years can sometimes obtain 70 to 75%.
How do these rates compare with a US or UK mortgage?
Israeli unlinked fixed rates of 4.8 to 5.5% sit below a typical US 30-year fixed in 2026 and above a UK 5-year fix. The difference is structural: the Israeli loan is a blend of tracks, part of it floats with prime, and the CPI-linked part has a low headline rate but a principal that grows with inflation.
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
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