The Housing Loans Law of 1992 sets the rules. The ministry issues a certificate of eligibility, and you receive the loan through a mortgage bank. The base amount ranges from ₪54,240 (599 to 999 points) to ₪161,665 (2,200 points or more); below 599 points there is no base loan. The rate is the lowest of the Bank of Israel's average housing rate for the term minus 0.5 point, 3%, or the bank's usual rate, and the balance is linked to the CPI.
The Zakaut loan counts as a fixed track for the 66.66% rule. A directed loan can be repaid early without any early repayment fee. An oleh can choose to be scored under the oleh rules or under the rules for veteran residents, whichever gives more.
The pitfall is expecting too much: Zakaut is a supplement, not the whole mortgage. The bank's own loans cover the rest, and the total is generally capped at 75% of the price. Check your eligibility with the ministry or your bank before you sign a purchase contract.
Example
A borrower with the maximum base loan of ₪161,665 at the 3% cap, over 20 years, pays at most about ₪897 a month at the start, before CPI linkage. If the lowest of the three rates is below 3%, the payment is lower. Repaying it early later costs no early repayment fee.