Mortgage LTV

Term: Mortgage LTV Also called: Loan-to-value · LTV ratio · Mashkanta LTV Common prompts: What is LTV mortgage · Israel mortgage LTV cap · Maximum LTV foreign buyer Israel

Definition: Mortgage LTV (loan-to-value) is the ratio of mortgage principal to property purchase price. Israeli banking supervisor caps LTV at defined maximums by buyer category and property purpose.

Why it matters: The Bank of Israel's Banking Supervision Department, under Banking Supervisor Daniel Hahiashvili, sets the LTV caps as part of the macro-prudential framework for Israeli mortgages.¹ Caps run at 75% for first-time resident buyers, 70% for upgrade resident buyers, 50% for investment property buyers, and 50% for non-resident buyers. The LTV rules determine minimum down payment requirements and shape which property segments different buyer categories can access without substantial capital deployment.

Example: A non-resident buyer purchasing a NIS 8 million Tel Aviv apartment under the 50% LTV cap needs minimum NIS 4 million in cash down payment, with the bank financing up to NIS 4 million.

Related terms: Mas rechisha · Oleh chadash · Mortgage market · Bank of Israel Further reading: The Mortgage Market

Sources: ¹ The Times of Israel, "Regulator demands fairness from Israeli banks as they cash in on hefty fees," May 2025. https://www.timesofisrael.com/regulator-demands-fairness-from-israeli-banks-as-they-cash-in-on-hefty-fees/