Israel Mortgage Simulator
Build your mortgage mix (Tamhil), see your monthly payment and total cost, and test how inflation and rate changes affect them.
Worked examples with today’s rates
Three typical buyers through the same engine as the simulator: balanced goal, medium risk, rates from Bank of Israel data for August 2026.
A first home at ₪2,000,000 with ₪600,000 down and ₪30,000 net income a month: a ₪1,400,000 loan costs about ₪8,883 a month, 30% of income (comfortable).
Recommended mix: 85% Kalatz, 15% Prime.
An oleh family, two years after aliyah, buying at ₪2,400,000 with ₪800,000 down and ₪30,000 a month, using a ₪117,985 Zakaut loan: about ₪10,045 a month, 33% of income (tight).
Recommended mix: 79% Kalatz, 14% Prime, 7% Zakaut.
A foreign resident buying at ₪3,000,000 must put down at least half, here ₪1,500,000; with ₪40,000 a month the ₪1,500,000 loan costs about ₪9,517 a month, 24% of income (comfortable).
Recommended mix: 85% Kalatz, 15% Prime.
How the simulator works
Israeli mortgages are split into several tracks with different rate types and indexation. This simulator lets you build that mix, see the monthly payment and total cost of each track, and check the result against Bank of Israel rules before you ask banks for an approval in principle.
- 01
Enter the property and your finances
Property price, down payment and net monthly income. The simulator works out the loan amount, the loan-to-value ratio and the share of your income that goes to repayments.
- 02
Build or optimize your mix
Add tracks (Prime, Kalatz, Katz, variable) and set the amount, term and rate of each, or let the optimizer propose a mix based on your goal and risk tolerance.
- 03
Compare scenarios
See the monthly payment, the total repaid and how higher inflation or a change in the Prime rate would affect you. Save or share the scenario to discuss it with a bank or an advisor.
Frequently asked questions
How much can I borrow for a home in Israel?
Banks look at two limits. Financing is capped at 75% of the property price for a single home, 70% for a replacement home and 50% for an investment property or a foreign resident. The monthly payment cannot exceed 50% of your disposable income, and banks are reluctant to go above 40%; many prefer around one third.
What is the difference between Prime, Kalatz and Katz?
Prime follows the Bank of Israel rate (policy rate + 1.5%) and changes with every rate decision. Kalatz is a fixed rate that is not linked to inflation, so the payment never changes. Katz is also fixed, but the balance is linked to the consumer price index, so the payment grows with inflation.
Do Bank of Israel rules limit how I split my mortgage?
Yes. At least one third of the loan must be at a fixed rate (Kalatz or Katz) and at most two thirds can be variable, including Prime and tracks that reset every few years. The maximum term is 30 years.
How does inflation affect a CPI-indexed mortgage?
On indexed tracks the outstanding balance is updated every month with the consumer price index. With 2% annual inflation, a ₪5,000 payment grows to roughly ₪8,200 after 25 years, even though the rate stays the same. Compare the indexed rate plus expected inflation with the non-indexed rate.
Is the result a bank offer?
No. The results are estimates based on average market rates. Use them to prepare: ask several banks for an approval in principle (ishur ekroni) on the same mix and compare their rates track by track.