To maintain stability, the Bank of Israel limits mortgage loans to 75% of a property's value for Israeli citizens, including new immigrants, purchasing their first home, with up to 50% for any further home. Foreign buyers can not benefit from this first property concession, and can receive financing of up to 50% of the purchase price. In many developed countries, mortgage limits are much higher—for example, in the U.S., borrowers can sometimes finance up to 100% of a home’s value. These restrictions help safeguard the financial system, preventing market crashes and dangerous real estate bubbles.
