Mortgage calculator for buying a home in Israel
Type the price, your down payment, the years and the rate to see what you pay each month, how much of it is interest, and what you still owe year by year.
25% of the price
How the loan is repaid
The home is
Add your income (optional)
The answer then shows how much of that income the first payment takes.
Your monthly payment
₪6,670
The same payment every month for 25 years.
- Loan amount₪1,200,000
- Total interest₪800,997
- Total paid back₪2,000,997
- Loan as a share of the price75%
Each month the interest is 4.5% divided by 12, which is 0.375%, of what you still owe, and the rest of the payment repays the loan.
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This table shows what you pay and what you still owe at the end of each year.
| Year | Interest | Loan repaid | Still owed |
|---|---|---|---|
| 1 | ₪53,456 | ₪26,584 | ₪1,173,416 |
| 2 | ₪52,235 | ₪27,805 | ₪1,145,611 |
| 3 | ₪50,958 | ₪29,082 | ₪1,116,529 |
| 4 | ₪49,622 | ₪30,418 | ₪1,086,111 |
| 5 | ₪48,224 | ₪31,816 | ₪1,054,295 |
| 6 | ₪46,762 | ₪33,277 | ₪1,021,017 |
| 7 | ₪45,234 | ₪34,806 | ₪986,211 |
| 8 | ₪43,635 | ₪36,405 | ₪949,806 |
| 9 | ₪41,962 | ₪38,078 | ₪911,729 |
| 10 | ₪40,213 | ₪39,827 | ₪871,902 |
| 11 | ₪38,383 | ₪41,656 | ₪830,245 |
| 12 | ₪36,470 | ₪43,570 | ₪786,675 |
| 13 | ₪34,468 | ₪45,572 | ₪741,103 |
| 14 | ₪32,375 | ₪47,665 | ₪693,438 |
| 15 | ₪30,185 | ₪49,855 | ₪643,583 |
| 16 | ₪27,894 | ₪52,145 | ₪591,437 |
| 17 | ₪25,499 | ₪54,541 | ₪536,896 |
| 18 | ₪22,993 | ₪57,047 | ₪479,850 |
| 19 | ₪20,373 | ₪59,667 | ₪420,183 |
| 20 | ₪17,631 | ₪62,408 | ₪357,774 |
| 21 | ₪14,764 | ₪65,275 | ₪292,499 |
| 22 | ₪11,766 | ₪68,274 | ₪224,225 |
| 23 | ₪8,629 | ₪71,411 | ₪152,814 |
| 24 | ₪5,349 | ₪74,691 | ₪78,123 |
| 25 | ₪1,917 | ₪78,123 | ₪0 |
These common cases show what a loan costs each month at 4.5% a year.
| Loan amount | 20 years | 25 years | 30 years |
|---|---|---|---|
| ₪800,000 | ₪5,061 | ₪4,447 | ₪4,053 |
| ₪1,200,000 | ₪7,592 | ₪6,670 | ₪6,080 |
| ₪1,600,000 | ₪10,122 | ₪8,893 | ₪8,107 |
Each case is an equal-payments loan at 4.5% a year, not linked to inflation. For example, ₪1,200,000 over 25 years costs ₪6,670 a month, and in all you pay back ₪2,000,997, of which ₪800,997 is interest. To see how much the index adds to an amount over the years, use the CPI linkage calculator.
The Bank of Israel limits how much a bank may lend for a home.
| The home is | The most a bank lends | You bring at least, on ₪1,000,000 |
|---|---|---|
| First home | 75% | ₪250,000 |
| Replacement home | 70% | ₪300,000 |
| Investment property | 50% | ₪500,000 |
- The monthly payment may not be more than 50% of your disposable income, which is your net income less your other regular loan payments. Above 40% a bank counts the loan as higher risk.
- A home loan may not run for more than 30 years.
- A first home is the only home its buyer owns. A replacement home is bought by an owner who undertakes to sell the home they have. Any other home is an investment property.
The payment comes from one formula, and the interest is worked out month by month.
- The yearly rate divided by 12 is the monthly rate. At 4.5% a year that is 0.375% a month.
- Each month the interest is the monthly rate times what you still owe, and the rest of the payment repays the loan.
- With equal payments (Spitzer) the payment is the same every month, so at first most of it is interest and each year more of it repays the loan. In the formula below, L is the loan, r is the monthly rate and n is the number of months.L × r ÷ (1 − (1 + r)−n)
- With equal principal each month repays the same slice of the loan, the loan divided by n, plus the interest on what is left, so the payment falls every month.
For example, a loan of ₪1,000,000 over 25 years at 4.5%: r is 0.375%, n is 300, and the payment is ₪5,558 a month. In the first month ₪3,750 of it is interest.
These three pages answer what people ask next about money in Israel.
Cost of Living in Israel
Rent, groceries and salaries in real numbers.
Shekel to Dollar
Today's rate, converted both ways.
Aliyah Guide
The whole move, step by step.
People ask these questions about mortgages.
What is a Spitzer schedule?+
A Spitzer schedule is a loan you repay with the same payment every month. Each payment is the interest on what you still owe plus a part that repays the loan. On ₪1,000,000 over 25 years at 4.5%, the payment is ₪5,558 a month: in the first month ₪3,750 of it is interest, and in the last month only ₪21 is.
Should I choose Spitzer or equal principal?+
Equal principal costs less in total but starts higher. On ₪1,000,000 over 25 years at 4.5%, equal principal costs ₪564,375 in interest against ₪667,497 with Spitzer, but its first payment is ₪7,083 against ₪5,558 and it falls to ₪3,346 in the last month. Spitzer is lighter on the budget in the first years. Equal principal suits a buyer who can carry the higher first payments.
How much can I borrow for a home in Israel?+
A bank may lend up to 75% of the price of a first home, 70% of a replacement home and 50% of an investment property. On a first home that costs ₪2,000,000, that is a loan of up to ₪1,500,000, so you bring at least ₪500,000 yourself. The monthly payment may not be more than 50% of your disposable income, and the loan may not run for more than 30 years. These are the Bank of Israel's limits, and a bank can lend less.
How much will ₪1,000,000 over 25 years cost a month?+
At 4.5% a year, ₪1,000,000 over 25 years costs ₪5,558 a month with equal payments. In all you pay back ₪1,667,497, of which ₪667,497 is interest. At 3.5% a year the payment is ₪5,006, and at 5.5% it is ₪6,141.
What does a 1% change in the interest rate do?+
On ₪1,000,000 over 25 years, going from 3.5% to 4.5% a year raises the payment from ₪5,006 to ₪5,558 a month, which is ₪552 more, and the interest in all from ₪501,871 to ₪667,497. Going from 4.5% to 5.5% adds another ₪583 a month.
An estimate with one fixed rate and no fees; a bank's offer can differ. The lending limits are from the Bank of Israel's Directive 329 on housing loans.
Planning a purchase? The net salary calculator shows what a month's pay leaves after tax, the compound interest calculator shows what savings for the down payment grow to, and the loan calculator works out any other loan.
The loan is not the only cost of a home. The purchase tax calculator shows the tax you pay on top of the price.