Borrowing money in Israel as a foreign resident is possible through a number of banks, with a varied set of loan products and terms. The rates and services available vary between the different banks, but the Bank of Israel has capped the maximum rate foreign borrowers are eligible to receive at 50% Loan To Value (the loan compared to the value of the property.) While the rate for Israeli residents is 75%.
Whether obtaining a loan through a broker or an Israeli bank - the documentary requirements are the same. Be sure to have the following set of documentation ready to hand:
· Passport
A passport is needed to determine country of residence and whether that country grants you eligibility to take out a loan in Israel.
· ID or driver’s license
The ID or driver’s license is used to check personal details and ensure there are no criminal records listed.
· Last 3 pay slips
The previous 3 pay slips are used to determine the value of the loan versus the repayment possibilities.
· The last 3 bank statements
Listing income and outgoings, other loans and repayments, the bank statements are used to judge the feasibility of repaying the loan.
With the right paperwork used to establish the loan limit and repayment terms, actually getting a loan in Israel is relatively easy and can be quickly executed.
Working solely on behalf of the client, GPI can provide clients with a list of banks and contact names of agents that speak your mother tongue.