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What Changed? The 70% LTV Revolution
What This Means in Practice:
More capital available: On a ₪2M property, you can now access up to ₪1.4M total (vs ₪1M before)
Cheaper debt: Replace 20%+ consumer loans with 5-6% mortgage rates
Any purpose: No restrictions on fund usage - business, investment, education, travel
How Much Can You Access? The Formula
The Equity Release Calculation
This formula determines the maximum you can potentially access. Actual amount depends on income verification and payment capacity.
Quick Reference Table
| Property Value | Existing Mortgage | Available Capital |
|---|---|---|
| ₪1,500,000 | ₪500,000 | ₪550,000 |
| ₪2,000,000 | ₪600,000 | ₪800,000 |
| ₪2,500,000 | ₪800,000 | ₪950,000 |
| ₪3,500,000 | ₪1,000,000 | ₪1,450,000 |
Eligibility Requirements: What Banks Check
Standard Requirements
- ✓Property ownership in Israel
- ✓Current LTV below 70%
- ✓Stable income documentation
- ✓PTI ratio under 40%
- ✓Updated property appraisal
Complex Cases (We Specialize In)
- →Self-employed income
- →Credit data issues (BDI)
- →High PTI (exception committee)
- →Foreign income documentation
- →Non-standard property types
Practical Example: The Cohen Family
Before (Monthly Payments)
- Mortgage (₪800K @ 4.5%)₪4,200
- Bank loan (₪150K @ 12%)₪3,500
- Credit cards (₪80K @ 18%)₪2,400
- Overdraft (₪50K @ 15%)₪1,200
- Total Monthly₪11,300
After (Consolidated)
- New mortgage (₪1.08M @ 5%)₪5,800
- Bank loan₪0
- Credit cards₪0
- Overdraft₪0
- Total Monthly₪5,800
Frequently Asked Questions
Frequently Asked Questions
The Bank of Israel's Directive 451 permanently allows homeowners to borrow up to 70% of their property's value for any purpose (previously limited to 50%). This means if your home is worth ₪2M and your current mortgage is ₪800K, you can potentially access up to ₪600K in additional capital at mortgage-level interest rates (4-6%) instead of consumer loan rates (15-25%).
Calculate Your Equity Release Potential
Find out exactly how much capital you can access from your Israeli property. Free assessment with no obligation.
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.