What is Capital Extraction?
Capital extraction (also called equity release or cash-out refinancing) means borrowing against your property's equity to access cash for investments, without selling the property. Under Bank of Israel Directive 451, you can access up to 70% of property value for any purpose.
The Math: Positive Leverage
Example: ₪800,000 Extraction
This is "positive leverage" - your investment returns exceed your borrowing cost, creating profit from the spread.
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Leverage & Equity Extraction Calculator
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Up to 70% LTV per regulation
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* Calculations are for illustration only and do not constitute an offer or commitment. Final results depend on personal eligibility assessment.
Frequently Asked Questions
Frequently Asked Questions
It depends on property value and existing mortgage. Under Israeli regulation, you can leverage up to 70% LTV. Example: Property worth ₪2M with ₪500K mortgage can extract up to ₪900K (₪2M × 70% - ₪500K). Actual amount depends on income verification.
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Legal Disclaimer
The data and returns presented are for illustrative purposes only and are based on past performance or market estimates. This information should not be considered as a guarantee of returns, investment advice, or a substitute for individual tax advice. Real estate investment involves risks, including regulatory changes, currency fluctuations, changes in property condition, and local market conditions. RealFix does not guarantee the displayed returns and is not responsible for losses resulting from investment. It is recommended to consult with a Certified Public Accountant and tax consultant before making investment decisions. E&OE.