Before searching for an apartment, it's important to know how much equity you really need. The amount isn't just the gap between the price and the mortgage - it also includes related costs that many forget to plan for.
The Financing Limit
For a first home you can usually obtain bank financing of up to three-quarters of the property price, meaning at least a quarter in equity is required. The exact rate is set by the Bank of Israel's directives and the bank's policy, and it's advisable to verify it at the time of purchase.
Related Costs
Purchase tax according to the statutory brackets, attorney's fees, brokerage if relevant, an appraiser and opening a mortgage file, and moving and renovation expenses. Total related costs usually add up to several more percent of the property price.
Planning Your Equity
It's worth separating the equity available today from other possible sources - savings, family help, or realizing an existing asset - and keeping a safety cushion rather than draining all your savings.
An Early Feasibility Check
It lets you know the realistic price range before you fall in love with a property, saving time and disappointment.
How MKOR Guides You
We map the equity and costs, check the financing range, and build a clear purchase plan before the search.