Buying a home in Israel: the process, step by step

From your first viewing to getting the keys: how buying in Israel actually works, and where it differs from the US and UK.

Buying in Israel follows a familiar arc, but a few steps work differently from what most Anglos expect. Here's the whole journey in plain English.

1. Get your numbers straight

Before you look at anything, find out what a bank will lend you. Israeli mortgages are capped as a share of the property's value (the loan-to-value, or LTV):

First home, Israeli resident: up to about 75%
Upgrading or additional home: lower
Foreign resident: typically up to 50%

Plan for purchase tax (mas rechisha) plus roughly 5–8% in other costs: lawyer, agent, appraiser and mortgage fees. Our purchase cost calculator estimates the tax and typical fees for your situation.

2. Pick the community first, then the home

This is the step people skip, and the one they regret most. The right apartment in the wrong community won't feel like home. Start with our community quiz and community guides.

3. Hire a lawyer early

In Israel, your lawyer does the work a US title company and closing attorney would do: checking the land registry (Tabu), liens, building permits and the contract. Hire one before you sign anything, including a "memorandum of understanding" (zichron devarim), which can be legally binding.

4. Make an offer and negotiate

Prices are negotiable. Your lawyer will check the property while the two sides negotiate the contract.

5. Sign and pay in stages

Payments usually come in installments tied to milestones. The final payment is due at key handover.

6. Register the property

After closing, your lawyer registers the purchase and pays the purchase tax.

This guide is general information, not legal or financial advice. Always consult a licensed Israeli lawyer and mortgage advisor.