Mashkanta for New Immigrants in Israel: Benefits and Teudat Zakaut

Mortgage for New Immigrants: Benefits and "Teudat Zakaut"

A mashkanta for new immigrants in Israel is a subsidized mortgage loan, the terms of which depend on points accumulated in the "Teudat Zakaut" (Eligibility Certificate). Today, the state subsidized rate is 3% per annum (CPI-linked), and the subsidized portion of the loan can reach ₪150,000–₪400,000 depending on family composition and length of stay in the country. This right is reserved for Olim Hadashim for 15 years from the date of repatriation.

What is Teudat Zakaut and How to Get It?

Teudat Zakaut is an official certificate from the Ministry of Construction and Housing confirming your right to government assistance for home purchases. The document determines the amount of the subsidized portion of the loan based on a point system (Nekudot Zakaut).

In practice, the number of points depends on the following factors:

• Number of years since immigration (repatriation).
• Family composition (presence of a spouse and children).
• Number of siblings (Israeli citizens) of both spouses.
• Completion of IDF service or alternative national service.

The certificate is processed through one of the mortgage banks. The document is usually valid for one year, after which it must be renewed. IsraRealty specialists recommend ordering the certificate from the Ministry of Construction in advance, as data verification can take up to 21 business days.

How Much Money Does the State Give to an Immigrant?

The subsidy amount is calculated individually: the minimum threshold usually starts at 599 points, which qualifies for a basic subsidized mashkanta. The more points you have, the higher the amount the bank is required to issue at a fixed low interest rate.

Comparison of Terms: Subsidized vs. Commercial Mortgage Part

Parameter	Subsidized Part (Zakaut)	Commercial Bank Part
Interest Rate	Fixed 3% (or -0.5% of the market rate)	Market Rate (Prime, fixed, or variable)
Loan Term	Up to 25–28 years	Up to 30 years
Prepayment Penalty	None	May apply ("Amlat Pirvon")
Amount Limit	Limited by points	Up to 75% of value (for first home)

Important to understand: "Teudat Zakaut" rarely covers the entire cost of an apartment. Usually, it is only a part of the overall loan portfolio; the rest is taken through market programs at Bank Hapoalim, Leumi, or Discount.

How to Get a Mortgage: A Step-by-Step Plan from IsraRealty

The process of buying real estate in Israel begins not with choosing an apartment, but with obtaining an "Ishur Ekroni" — preliminary bank approval. Without this document, signing a purchase agreement is legally risky.

1. Document Collection: Teudat Ole, Teudat Zeut, proof of income for the last 3 months (Tlush Maskoret), and bank statements.
2. Ordering Teudat Zakaut: Submitting an application through the bank to calculate points.
3. Property Selection: Checking the registration in the Tabu (Land Registry) and the absence of encumbrances.
4. Property Appraisal: Hiring an independent appraiser (Shamai) to confirm the property's value for the bank.
5. Signing the Contract: Transferring the down payment (minimum 25% for a first home).

"Many immigrants make the mistake of focusing only on the subsidized rate. In our experience, sometimes a well-negotiated commercial part of the mashkanta provides greater long-term savings than the government subsidy." — IsraRealty Mortgage Broker

Case Studies: Real Deals

Case 1 (Netanya): A family of Olim Hadashim with two children purchased a 4-room apartment. By calculating points (accounting for siblings in Israel), they received a subsidized portion of ₪280,000 at 3%. This reduced their monthly payment by ₪450 compared to a purely commercial bank offer.

Case 2 (Haifa): A single immigrant planned to buy a studio. IsraRealty brokers helped combine the subsidized mashkanta with a subsidy program for priority development areas, reducing the actual down payment to 20% through additional banking instruments.

Frequently Asked Questions