Do I Need a Property Appraisal to Get a Mortgage in Israel?

Yes, you do. If you’re taking out a mortgage to buy a pre-owned home in Israel, the bank usually requires a certified property appraisal to determine the loan-to-value (LTV) ratio. This valuation helps the lender confirm that the property is worth the amount you’re paying—and protects you from borrowing more than it’s worth. Importantly, illegal extensions or unregistered changes won’t be included in the appraised value.

What documents will I need?

You’ll need to provide the signed purchase agreement, proof of ownership, and key property details, including location and building permits.

Who arranges the appraisal for the mortgage?

The bank either assigns an approved appraiser or gives you a list to choose from. You’ll coordinate directly with the appraiser and pay for the service.

What happens if the appraisal mortgage is too low?

If the property appraisal comes in lower than your purchase price, you may need to increase your down payment, renegotiate, or explore other financing options.