Banking regulation, multiple products, high fixed rates, rates indexed to inflation, increasing capital – all these factors can make people lose their heads when they dream of buying their first flat, investing in Israel and building up their assets.

There will be many pitfalls on the road to property ownership, but like everything else, with perseverance, you’ll get there in the end!

You need to find a good lawyer, a good banker and a good adviser.

First of all, banking regulations in Israel are very restrictive. Israel is a dynamic growth country, with a growing population and a large amount of land in state hands.

For several years now, demand has outstripped supply, and construction has fallen further and further behind the number of new households looking for housing.

The high cost of rent and the near-absence of social housing are driving households to buy their own flat, and to do so at a relatively young age.

In order to combat the rapid increase in property values, and to prevent a property bubble, the Bank of Israel decided a few years ago to limit the maximum debt to 75% for the purchase of the first flat – and to 50% for the purchase of an additional flat – in order to push investors out of the property sector.

Where it was possible to leverage existing properties, the Bank of Israel has decided to limit the debt to 50% of the additional property.

The Bank of Israel’s stated aim is to regulate the property market by impacting demand.

This policy has proved ineffective to date.

As you will have realised, there are many determining factors in the decision to take out a loan, and it’s best to be aware of them so that you can be better prepared for changes in the market.

At CAP8, we will give you the benefit of our 16 years of experience in the field of mortgages and support for your property purchase or investment in Israel, so that you can approach this important stage with complete peace of mind.