For many new immigrants, buying a home in Israel is both a personal milestone and a complex financial step, especially for those navigating the system from abroad or shortly after arrival in Israel.“There’s a clear increase in this space, both among new immigrants and foreign residents preparing for aliyah,” said Ronen Ben-Bassat, Head of Business Development at Bank Leumi's Mortgages Division.2 View gallery Apartment building in Nahlaot, Jerusalem (Photo: Nimrod Levi)The trend reflects not only lifestyle choices but also broader global concerns. Many buyers are securing property in Israel as a long-term option for themselves or their children, even before making a final decision to relocate.From a regulatory standpoint, new immigrants are largely treated like Israeli residents. “If it’s your only home, you can receive up to 75% financing once you become an Israeli citizen,” Ben-Bassat said. Still, the process comes with unique challenges.The first hurdle is financial visibility. Many olim earn their income abroad and arrive without a local credit history, making it harder for banks to assess their profile. “It’s harder to assess income when it’s generated abroad, and there’s no Israeli credit history,” Ben-Bassat said.Banks often rely on foreign credit scores and tax records, but applicants should be prepared to provide at least two to three years of financial documentation. Beyond approval, there are additional considerations that tend to arise later on. Currency exposure is one area that is often underestimated. “If your income is in dollars but your mortgage is in shekels, and the dollar drops, your real payment goes up,” Ben-Bassat said.2 View gallery Tel Aviv(Photo: Courtesy of Ben Shalom Entrepreneurship)Cash flow is another weak point. Many new immigrants keep their primary accounts abroad and fail to maintain enough liquidity in Israel. “Sometimes people forget to transfer money to their mortgage account, and a payment can bounce. That gets recorded in Israel’s credit system,” Ben-Bassat said. To avoid this, banks recommend holding several months' worth of payments locally, along with a buffer for unexpected costs such as taxes, maintenance and repairs.At the same time, many olim underestimate how different Israeli mortgages are. “In many countries, mortgages are very simple, mostly fixed-rate. In Israel, there are more options that may be more suitable for the customer's needs,” Ben-Bassat said. By law, at least one-third of a mortgage must be fixed-rate, but the rest can be structured across different tracks, including variable and prime-linked components.If you are still living abroad, according to foreign banking regulations, the bank must follow; you may be required to be present in Israel in some stages of the process, and you may also ask the bank to manage the process with your local representative in Israel.Ronen Ben-Bassat, head of credit in the mortgage division at Bank Leumi Photo: Oren DaiBroadly speaking, New immigrants are entitled to reduced purchase tax rates when buying a residential property in Israel, subject to specific conditions. The benefit only applies to purchasing a single property, and applicants must meet the legal requirements. Further information is available on the Ministry of Aliyah and Integration's website and you may want to consult a tax specialist. Moreover, developers are increasingly targeting this market, offering promotions and tailored outreach abroad.Do I need an Israeli credit history to get a mortgage?