Question 1

What is a renovation mortgage?

Accepted Answer

A long-term loan for renovating existing property. Unlike regular loans, terms are similar to a standard mortgage: lower interest rates, longer terms (up to 30 years), and the property serves as collateral.

Question 2

How much financing can I obtain?

Accepted Answer

Up to 75% of current property value or post-renovation value (whichever is lower). For example: property worth 2 million shekels = up to 1.5 million for renovation.

Question 3

What is the interest rate?

Accepted Answer

Very close to regular mortgage rates - between 3.5% to 5.5% depending on the track (fixed/variable/prime). Much cheaper than regular loans or consumer credit which can reach 8-15%.

Question 4

What is the repayment period?

Accepted Answer

Up to 30 years, just like a regular mortgage. This enables low and comfortable monthly payments. You can also choose shorter periods (10-20 years) with higher payments.

Question 5

What is the difference between renovation mortgage and regular loan?

Accepted Answer

Regular renovation loan: 5-8% interest, up to 7 years, no collateral. Renovation mortgage: 3-5% interest, up to 30 years, property as collateral. Monthly payment is significantly lower with renovation mortgage.

Question 6

Is an appraisal required?

Accepted Answer

Yes, appraisals before and after renovation are required. The appraiser evaluates current property value and expected post-renovation value. This determines the maximum possible financing.

Question 7

Do I need special permits for renovation?

Accepted Answer

Depends on scope. Cosmetic renovation (paint, flooring, kitchen) - no permit needed. Structural renovation (expansion, wall changes, construction additions) - requires building permit from local authority. We assist with permits as well.

Question 8

How is money transferred - all at once or in stages?

Accepted Answer

Usually in stages, based on renovation progress. First stage (30-40%) at signing, then additional payments against inspector approval of work progress. This protects both you and the bank.

Question 9

Can I renovate a rented apartment?

Accepted Answer

No, renovation mortgage is for property you own only. The property serves as loan collateral. If you are renting, you will need to explore other financing options.

Question 10

Can I combine renovation mortgage with existing mortgage?

Accepted Answer

Yes, this is very common. In this case we perform 'refinancing + renovation' - close existing mortgage, add renovation amount, and open one new mortgage with better terms.

Parameter	Renovation Mortgage	Regular Loan
Annual Interest	3-5%	6-8%
Repayment Period	Up to 30 years	Up to 7 years
Maximum Amount	75% of property value	Income-based only
Collateral	Property itself	Guarantors required
Payment on 500K NIS	~2,100 NIS/month	~8,500 NIS/month

Parameter	Renovation Mortgage	Regular Loan
Annual Interest	3-5%	6-8%
Repayment Period	Up to 30 years	Up to 7 years
Maximum Amount	75% of property value	Income-based only
Collateral	Property itself	Guarantors required
Payment on 500K NIS	~2,100 NIS/month	~8,500 NIS/month

Renovation Financing

Mortgage-Level Rates

Extended Terms

Property as Collateral

What Can Be Renovated?

Painting & Flooring

Kitchen & Bathrooms

Electrical & Plumbing

Home Extensions

Full Renovation

Safe Room

Roof & Waterproofing

Permit Assistance

Comparison: Renovation Mortgage vs Regular Loan

Our Process

Consultation

Appraisal

Track Selection

Approval & Signing

Renovation Support

Frequently Asked Questions

Planning a Renovation?

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Complex credit history? Non-standard profile?