Published July 25, 2016 by Tzvi Shapiro

Most Israeli banks usually use traditional underwriting criteria when qualifying debt to income ratios: a 33% monthly mortgage payment to net income ratio.

However, there are other factors that can affect the banks’ decision.

Qualifying rates, typically 2-3% above the adjustable rate, are used when qualifying your payment on adjustable loans, impacting the amount for which you may qualify.

If you have significant liquid assets but lack income, the loan may still be approved.

Credit and debt need to be analyzed as well.

These are some of the reasons why we often advise our clients to apply for an “ishur ikroni” or pre-approval before signing a contract to purchase property in Israel.