Whether a home counts as single, replacement or investment follows the Land Taxation Law definitions: the bank asks you for a lawyer-certified affidavit and for the declaration you filed with the Tax Authority. A foreign resident, meaning anyone who is not an "Israeli citizen" under the directive's definition, can only buy an investment home in the bank's eyes, so the 50% cap applies.
LTV is measured on the value of the purchased property alone, even if other assets are pledged, and the bank adds the balance of earlier loans secured on the same property. Since 8 February 2026 an any-purpose loan secured on a home may reach 70% LTV, provided the part above 50% is no more than ₪200,000.
The pitfall is assuming a category. An Israeli citizen living abroad who is registered in the Population Registry is not automatically a foreign resident, while a buyer who owns a home and does not commit to sell it buys an investment home. Ask the bank at the start which category applies to you.
Example
On a ₪2,000,000 home the maximum loan is ₪1,500,000 as a single home (75%), ₪1,400,000 as a replacement home (70%) and ₪1,000,000 as an investment home or for a foreign resident (50%). The own funds needed are ₪500,000, ₪600,000 and ₪1,000,000, before taxes and fees.