Over 60, own a property in Israel, and in need of cash? Whether you are looking to help children get married, assist them in buying their own home, make an investment, pay off debts, or supplement your own income — a Reverse Mortgage provides an easy way to raise funds while holding onto your property.
A reverse mortgage is a special type of loan accessible only to Israelis who are at least 60 years old. The property is used as security for the loan and typically requires no monthly repayment. Instead, the loan and accrued interest are only due upon the death of the last borrower — at which point the heirs may repay the loan to retain the property, or the bank sells the property to recover its funds.
Unlike the United States, where approximately 57% of households own their own homes, in Israel homeownership reaches as high as 70%. This is despite consistently high housing prices — the average cost for a four-room apartment in Tel Aviv reached approximately $682,000 by mid-2021, with analysts projecting continued growth.
A 2020 study by Compare The Market Australia found Israel ranked as the second least affordable country for housing globally, with each square meter of housing space costing the equivalent of 26.6% of the average Israeli household's annual disposable income. This high real estate value means homeowners can access significant funds when applying for a reverse mortgage.
Israelis have been familiar with reverse mortgages for many years — private lenders have facilitated them since the early 2000s. In 2022, the Bank of Israel's Banking Supervision department published a comprehensive circular to regularize the reverse mortgage market, allowing reverse mortgages up to 50% of the home's value.
The circular also noted that while reverse mortgages are designed for elderly homeowners, they are increasingly leveraged to help finance homes for heirs — making them a multi-generational financial planning tool.
Lenders consider your age and home value as the primary factors when estimating the loan amount they can offer:
Contact us for a real-time estimate based on the current value of your home and your specific circumstances.
