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What Changed? (Bank of Israel Directive 329)
Banks No Longer Offer Developer Loans Like Before
Directive 329 significantly limited banks' ability to provide subsidized loans (balloon loans) to buyers from developers. The goal: reduce credit risks and prevent real estate bubbles.
Result: Banks are much more selective, and 20/80 deals have almost completely disappeared.
What does this mean in practice? The developer promises you 80% financing, but the bank approves only 70%. Who makes up the difference? You. And if you do not have it - the deal falls through.
Have Credit Score Issues (BDI)?
Banks check your credit rating before any approval. If you have a low credit score (BDI), this complicates developer loan approval even further. Read our complete guide to handling credit score issues.
Bank Said No? RealFix Has Solutions Your Banker Does Not Know.
With experience since 2008 and deep familiarity with the new regulations, we know how to approve complex deals, consolidate loans, and raise capital under optimal conditions. Even if your banker said it is impossible.
Check Financing EligibilityThe Danger: Signed Without Approval? You Are at Risk
The Classic Scenario:
- • Step 1: Sales agents at the developer's office promise you "80% financing is easy"
- • Step 2: You sign the contract with a 10% deposit
- • Step 3: You approach the bank → bank approves only 70% (or less)
- • Step 4: You are missing 10-15% on payment day
- • Result: Loss of deposit or lawsuit from developer
Important to know: Sales agents at the developer's office are not responsible for your financing. They do not know your credit score, do not know your personal file, and do not bear the risk if it does not work out.
The RealFix Solution: Proper Credit Classification
1. We Know Which Banks Still Approve
Not all banks interpreted Directive 329 the same way. We know who still provides credit for new apartments through special tracks, and what the exact criteria are.
2. We Build Your File Right from the Start
Proper credit classification = the difference between approval and rejection. We prepare the documents, highlight strong points in your file, and choose the right bank for you.
3. Creative Financing Alternatives
If the regular track does not work, we have additional solutions:
- • Combined financing: Mortgage + non-bank loan
- • Parental guarantee: To increase financing percentage
- • Leverage existing property: Home equity loan on your old property
Check Your Financing Capacity
Before signing a contract with a developer, check exactly how much financing you can get and what your monthly payment will be.
Mortgage CalculatorCritical Tip: Pre-Approval Before Signing!
The Golden Rule:
DO NOT sign a purchase agreement before you have full pre-approval from the bank (not just a "preliminary check").
- • What is "full pre-approval"? An official letter from the bank with exact amount, financing percentage, and estimated interest rate.
- • Why is this critical? The sales office is not responsible for your financing. You are.
- • How long does it take? 7-14 days with a professional advisor who prepares the file.
Israel Residents Only
This article applies to mortgage regulations for properties purchased in Israel. Directive 329 is a Bank of Israel regulation that affects Israeli bank mortgages. Non-residents purchasing in Israel face additional requirements including higher down payments (typically 50%+).
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Legal Disclaimer
The information and simulations presented on this website are for illustrative purposes only and do not constitute a binding offer for credit or financial advice. Credit Approval: Subject to final underwriting, clean credit data (positive credit score), clean banking history, and meeting the threshold requirements of the financing institutions. Interest Rates: The interest rates displayed are estimates only, based on average market data, and may change at any time according to the client's individual risk profile and economic conditions (Bank of Israel interest rate changes / CPI). No Commitment: RealFix does not guarantee loan approval or the terms displayed in the calculator. E&OE.
