Mortgage for an Investment Property in Eilat: What to Check

For an investment property, a bank in Israel usually finances up to half of the property's value, therefore requiring significantly higher equity than for a first home. According to Bank of Israel Directive 329, reviewed on 28.10.2026, the ceiling for an investment property is 50%. Therefore, before searching for a property, check with the bank what the current ceiling is and what the monthly repayment will be.

How much can you get as a mortgage for an investment property?

According to Amendment to Bank of Israel Directive 329, the ceiling for an investment property is 50%. Bank of Israel Q&A from 8.2.2026 presents the same ceilings of 50%, 70%, or 75% depending on the loan's purpose. The text of the Supervisor of Banks' letter from 2012 specifies 75% for a single property, 70% for a replacement property, and 50% for an investment property. A Q&A page from Midrag, undated, states a 50% ceiling for a second property in banks. The ceiling that will apply to you is determined by the bank, based on your situation.

Table: Financing Ceilings by Purchase Type, according to Bank of Israel sources reviewed on 28.10.2026

The practical meaning: for a property priced at ₪1.5 million, half of the price is the required equity before additional costs. This is a calculation example and not a price quote from Livo.

Can you get more through non-bank financing bodies?

According to Midrag, non-bank entities not subject to the same regulation can offer a higher financing rate, usually at a higher interest rate. Offers vary from one entity to another, so there is no specific rate or interest here. Compare written offers based on the monthly repayment and total repayment, not just the financing percentage.

What to check before applying for an investment property mortgage?

Before approaching a bank, ensure you have equity that also covers purchase tax and expenses, that the monthly repayment is feasible even in a conservative scenario, and that short-term vacation rentals are permitted in the building. The following list details each point.

1. Equity. Includes purchase tax and lawyer's fees, which are paid in addition to the property price. Calculate purchase tax according to the guide on purchase tax for an investment property in Eilat and the Tax Authority's simulator.
2. Repayment ability. Anyone already paying a mortgage on their home needs to show the bank they can afford an additional repayment.
3. Purpose and regulations. Before relying on vacation rentals, check that they are permitted in the building, as detailed in What to check before buying for short-term rental. Do not assume rental income as part of the calculation until the bank has confirmed it in writing.
4. Conservative scenario. Calculate monthly repayment against income with lower-than-average occupancy and during weak months. Published yield data is detailed in Yield from a vacation property in Eilat.
5. Consultation. A mortgage advisor and a lawyer before signing.

How can Livo help?

Livo does not provide mortgages or mortgage advice. Anyone looking for a suitable property can leave their details on the income-generating properties in Eilat page, and a licensed Livo agent will contact them, without commitment to a result or yield. To see what vacation rentals look like from the guests' perspective, you can browse villas in Eilat.

The information on this page is general, based on public publications cited alongside it, and does not constitute investment advice, tax advice, or legal advice. Livo does not guarantee any yield. Before any transaction, it is recommended to consult with a lawyer and an accountant.