The ongoing war in Israel has created widespread financial uncertainty in the real estate industry, especially for homeowners, property buyers, and sellers. Many are unsure how to manage their mortgage during war, navigate property purchases, or protect their investments. This article outlines the legal protections available to reservists called up for service, options for civilians facing financial hardship, and the practical steps buyers and sellers can take to keep property transactions moving forward despite the current situation.

As the war in Israel continues, many aspects of daily life have been disrupted. For thousands of Israelis called up for emergency reserve duty and for many others navigating financial uncertainty due to the war, the question of how to manage mortgage payments during war has become increasingly relevant.

Whether you already have a mortgage or are in the process of buying a home, it’s important to understand the rights and protections available to you during this time.

For Soldiers and Reservists: Mortgage Relief Options

If you’ve been called up for miluim (reserve duty), particularly under a Tzav 8 emergency order, you are entitled to legal protections designed to ease your financial burden while serving.

By law, anyone serving in miluim for at least five consecutive days is entitled to request a postponement of their mortgage payments (dchiyat tashlumim). This includes both principal and interest and applies for the duration of your service. Once your reserve duty ends, the missed payments are typically added to the end of your mortgage term or spread across future installments (note that this will raise your monthly payments slightly).

This deferment is not automatic, and you’ll need to contact your mortgage bank directly and provide documentation of your service. During this deferment period, your bank cannot impose late fees, penalties, or default interest. Equally important, foreclosure proceedings and other legal actions are completely frozen while you’re on reserve duty, as well as for a short period of time after your service ends.

Buying Property While in Uniform

If you’re in the process of buying a home and need a mortgage during war, military service won’t necessarily stop you, but it might complicate the paperwork.

Because of this, banks generally allow workarounds such as:

• Granting power of attorney to someone who can sign on your behalf
• Postponing the actual physical signing until your return (Bank Leumi allows you to do it over Zoom)
• Digital document submission (only when original signatures aren’t needed)

For Civilians: Dealing with Financial Strain

You don’t need to be in uniform to feel the financial impact of war. Job loss, closed businesses, or displacement from one’s home create financial difficulties for homeowners and buyers alike. While there hasn’t been a nationwide mortgage freeze during the war, some banks are offering deferment on a case-by-case basis.

These deferments typically allow for a 3–6 month grace period, during which mortgage payments are paused and rescheduled without penalties. Again, you’ll need to reach out to your bank and explain your situation, as eligibility is not automatic.

What to Prepare When Requesting Help

Whether you’re a reservist or a civilian seeking relief, it’s a good idea to have the following ready when approaching your mortgage bank:

• Teudat Zehut (identity card) for Israelis or passport plus driver’s license for non-Israelis
• Proof of military service (if applicable)
• Mortgage account number
• A short written request detailing your situation

Note that some banks have dedicated hotlines or specific digital forms for handling requests related to mortgages during war. It’s important to follow the bank’s instructions exactly as they request and make sure to follow up!

Additional Tips for Homeowners

• If your mortgage is tied to life insurance, make sure it remains active (especially important if you’re in active duty or living in a dangerous area).
• If you’re in a variable-rate mortgage, keep in mind that interest rates may still fluctuate during this period (and may fluctuate more than usual based on the economic situation on the ground).
• For those in the middle of a property purchase, most sellers and banks will offer flexibility on deadlines due to wartime complications. If agreed upon by both sides, appraisals, contract signings, and document submissions may be rescheduled without issue (although you must request it, as nothing is automatic).

Learning from the Past

While the current war presents its specific challenges, many of the relief measures being discussed or implemented echo what was done during COVID. Back then, banks allowed widespread mortgage deferments, offered digital workarounds for document signing, and extended grace periods across the board. Though not as automatic this time around, the infrastructure, policies, and customer-first mindset developed during the pandemic have made it easier for banks to respond flexibly now. If you benefited from those policies during COVID, you may find similar types of support available today.

Moving Forward

We may be living in uncertain times, but Israel’s mortgage system is built with resilience in mind. Know that you are not alone, and there are many others in the same boat as you. With the right steps, you can postpone payments, avoid penalties, and continue buying property in Israel as usual. The COVID era has shown us that with clear communication and government backing, banks are capable of moving quickly and fairly. That precedent, thankfully, hasn’t been forgotten.