Olim Chadashim are entitled to mortgage assistance and discounted purchase tax.

Mortgage Benefits

A special mortgage for Olim is available under the following conditions:

1. Granted up to 10 years after your Aliyah.

2. Provided as a loan with low interest rates, as compared to other market rates (4-4.5%).

3. Paid back in monthly payments, usually for a period of 20-28 years.

Because the amount of the mortgage is rather small, you may need additional sources of funding. It is wise to shop around for the best rates.

Who is eligible for a government housing mortgage?

1. Olim Chadashim (New Immigrants)

2. Ktinim Chozrim (Returning Minors)

3. Ezrachim Olim (Israeli Citizens born abroad)

Mortgage assistance is granted only if you meet the following criteria:

1. The individual must be "without housing," which means that neither member of a couple owns an apartment, or part of an apartment in Israel.

2. Only available to Olim Chadashim who hold a Teudat Zakaut issued by a mortgage bank. (A Teudat Zakaut is an official document issued by Israel's Ministry of Housing and Klita).

3. Those purchasing property in Israel before making Aliyah must make Aliyah within one year and still owe payments to the buyer equivalent to the mortgage received as an Oleh.

Mortgage received is based on a point system and will be determined with consideration of the following criteria: 

1. Age/family status/family size %u2013 single, married, children

2. Numbers of years living in Israel

3. Length of service in the Israeli IDF

Please check the Misrad HaBinui v'Hashikun (Ministry of Housing) website and check their calculator for mortgages (in Hebrew): www.moch.gov.il (Go to Siyua B'Diyur and then to Ashaf HaSiyua.)

Building a Bayit Ne'eman Buying into a new development? Purchasing from a previous owner? Building from scratch? Real estate lawyer Gad Dishi dishes out the facts about establishing a home for yourself in israel. - Listen - Download [To download the program right mouse-click on "listen" link and choose "Save Target As"] - See List of all Radio Programs

Mas Rechisha (Purchase Tax)

Anyone who purchases a property in Israel is obligated to pay a purchase tax, which is a percentage of the value of the home.  As Olim Chadashim you are entitled to a discount.  The amount you are taxed is based on the value of the asset and can amount to considerable sums of money.

All Olim Chadashim and anyone who resides in Israel on a temporary resident visa (A-1) is entitled to a reduction. A reduction in Mas Rechisha is available up to 7 years after your date of Aliyah. There is no extension of this 7 year period (unless the applicant served in the IDF).

There are two possible tracks that are available for Olim when purchasing a home.

1. Track One: Purchasing Home as Israelis or Tourists

Israelis and tourists pay the following percentages on Mas Rechisha. Please note that these percentages are calculated on a graduated basis according to the apartment's price):

Up to 1,084,935 NIS - 0%
1,084,935 NIS - 1,524,770 NIS - 3.5%
Above 1,524,770 NIS - 5% tax      

2. Track Two: Purchasing Home as Olim Chadashim

As Olim Chadashim, you will pay the following percentages on Mas Rechisha:

Up to 1,393,220 NIS                   0.5% tax
Over 1,393,220 NIS                    5% tax

Purchase Tax Rates (for homes purchased between 1/16/2010 and 1/15/2011)

Sample House Values (NIS)	Purchase Tax - New Olim	Purchase Tax - Israelis	Purchase Tax - Tourists
1,084,935	5,425	0	0
1,393,220	6,966	10,790	10,790
1,524,770	13,544	15,394	15,394
1,700,000	22,305	24,156	24,156

Notes: