Israel REAL ESTATE MORTGAGE LOANS BANKS
Under the mortgage in Israel
By granting of corresponding documents and guarantees foreign citizens can apply for reception of the hypothecary loan in the Israeli bank.

The size of the loan for acquisition of the inhabited real estate makes a maximum of 60 % from a project cost. It is necessary to notice that when the buyer receives ìàøêàíòó, the bank becomes the co-owner of its real estate till the moment of full payment of a loan. The real estate to be in so-called ibud– joint possession.

1. What steps need to be undertaken to the Russian without the Israeli citizenship and without the open account in bank of Israel for mortgage reception?

First of all, it is necessary to present necessary documents and to obtain the permit of bank to the mortgage. Documents should be either in a Hebrew, or in English. Notarial assurance is necessary. At giving of documents presence of the buyer of apartment unessentially. The list of necessary documents the following.

  1. The passport of the buyer and if it/it is married, the passport of the spouse/spouse. Copies of all pages. If the buyer wishes to write down the real estate on itself and if it/it is married the wife (husband) appear as guarantors, therefore all documents should be for both spouses.
  2. The inquiry from tax inspection about the revenue for last two years.
  3. To hired workers, except this inquiry, it is necessary to present inquiries on the salary for last five months (2NDFL).
  4. Listing of a condition of the current bank bill of the client for last five months.
  5. The declaration on presence of the property (real estate) or other capital (contributions to banks).
  6. At giving of documents on the permission ìàøêàíòû it is desirable to present the information on bought habitation.
  7. At reception of the definitive statement ìàøêàíòû after signing of the contract and at definitive giving of documents the bank demands insurance policy granting.

The definitive permission – additional documents from the seller and, of course, the purchase and sale contract – all it moves again and occupies about one week on the full statement. At the definitive statement the bank also demands the policy about life insurance.

2. If it is necessary to open the bill in the Israeli bank in what currency it should be (payments from Russia go in dollars)? Whether there is a restriction on time of opening of the bill? Whether it is necessary to have any sum on him?

The bank account can be opened only the buyer. To sign the contract and to open the bill it is possible for one visit to the country. The bill opens after signing of the contract on purchase of apartment with simultaneous definitive registration ìàøêàíòû. The size of the sum of the initial contribution has no value. For bank important that on it to the bill monthly there was enough money for repayment of the hypothecary credit. The bill opens in shekels, further the buyer can trace a rest condition ìàøêàíòû through the Internet.

3. What process of giving of documents on the mortgage? To submit documents to bank on consideration or signing of the contract of purchase and sale – from what to begin?

At first all listed documents are given on reception of the basic permission from bank and insurance company EMI (the exclusive insurance company). The company gives guarantees to bank. For the participation EMI a beret 4 %-s’ award from the sum of the hypothecary credit.

4. Whether it is possible to give without signing of the contract of purchase and sale documents on mortgage consideration?

It is possible, but it is desirable to give the full information on bought object.

5. Whether there should be a transfer of inquiries and documents, if yes, on what language? Whether it is necessary notarial assurance of documents?

Yes, notarial assurance is necessary. All documents should be translated into English or a Hebrew.

6. What is the time occupies process of consideration of documents? Whether it is possible to accelerate it somehow?

Process of consideration of documents occupies approximately from two about three weeks. To accelerate process it is impossible.

7. At what stage necessity in the presence of the buyer in Israel disappears, that is during what moment it can appoint the authorised representative?

Banks demand the signature of the buyer in the contract of purchase and sale of the apartment, therefore all process of signing of the contract, opening of the bank account and the definitive permission goes only in the presence of the buyer.

8. The Russian can count on what interest rate and for what term of the credit? What process and the time schedule of payments on mortgage return?

There are many programs, but for today the most popular – ÏÐÀÈÌ (the base rate of refinancing) plus of 2-3,5 %.

The mortgage affirms for 25 years (or less – at will of the buyer), the age of the borrower also influences term size on which the mortgage stands out. If the borrower is in age of 50-60 years – it is possible to take the mortgage for 25 years if the borrower is more senior – the mortgage stands out for term äî15 years.

Examples of payments: the monthly sum of payment for 100 000 shekels taken on credit, makes 585 shekels + 4 % (EMI). For 1 000 000 shekels – 5 860 shekels in a month of +4 % (EMI).

9. In what process of repayment of the hypothecary credit and remittance consists?

Money acts in film bank from the bill opened in Israel.

10. What if the buyer is not the Jew? Whether there are any restrictions?

No, similar restrictions do not exist.

11. Whether interest rates depending on vary, whether is the borrower the client of bank or not?

Certainly, íåêëèåíòàì the bank allows a loan on less favourable conditions. On the average on 2 % above, than to the clients who have bills in the given bank throughout many years.

12. Whether there is a penalty for preschedule repayment of the mortgage, if yes, what?

Yes, ñóùåñòâåò, but there is a version of the hypothecary program according to which conditions of the penalty for preschedule repayment of the credit it is not provided.

13. Whether recalculation ìàøêàíòû on more favourable conditions is possible?

Banks of it avoid, especially when it is a question of foreigners. Therefore the answer – is not present.

14. Whether it is possible to issue the mortgage at acquisition of the commercial real estate?

Possibilities to receive ìàøêàíòó on the commercial real estate are not present, it stands out only on habitation.

15. Whether finance the Israeli banks of citizens of Israel buying the real estate abroad?

No, do not finance.