Israel's Mortgage Eligibility Certificate (Teudat Zaka'ut) — a Step-by-Step Guide for Olim
The eligibility certificate (Teudat Zaka'ut) is a Ministry of Construction and Housing document that grants a state-subsidized loan — the "eligible buyers' mortgage" — on favorable terms, as part of your overall mortgage. Eligibility is scored on a points system, Olim receive dedicated bonus points, and the benefits are available for up to 15 years from the date of Aliyah. Loan amounts range from tens of thousands of shekels up to about NIS 200,000, at a subsidized interest rate of no more than 3%. Here is the full step-by-step process.
What is the eligibility certificate and what does it give you?
The certificate is an official document of the Ministry of Construction and Housing that determines whether you qualify for a state housing loan and for how much. The loan carries favorable terms: a subsidized interest rate that does not exceed 3% (or a discounted market rate). Crucially, the eligible buyers' loan joins your regular bank mortgage as one cheaper component of the total financing — it does not replace it.
The points system — how eligibility is calculated
Each household receives a personal score; the higher the score, the larger the loan. These are the main criteria:
| Criterion | What is checked |
|---|---|
| Years of marriage / partnership | How long the couple has been married or sharing a household |
| Siblings | The number of brothers and sisters of each spouse |
| Children | The number of children in the household |
| Military / national-civil service | Full service earns additional points |
| Aliyah | Olim receive dedicated bonus points beyond the standard criteria |
The exact weight of each criterion is set in Ministry procedures and may be updated — per the procedure, it is advisable to verify the current scoring with the issuing company when you apply.
The Olim benefits — and the 15-year window
New immigrants enjoy two advantages: dedicated bonus points that increase the loan amount, and a wide time window — the benefits are available for up to 15 years from the date of Aliyah. Even someone who made Aliyah years ago and has not yet bought a home may still qualify. For families from the Ethiopian community, this often combines with additional tracks — see our guide to the subsidized mortgage for the Ethiopian community.
How to obtain the certificate — step by step
- Preliminary check — confirm you meet the basic conditions (such as not owning a home, per Ministry rules) and estimate your expected score using the criteria above.
- Gather your documents — prepare everything listed in the next section in advance; a complete file saves repeat visits.
- Approach an issuing company — the certificate is issued through the issuing companies operating on behalf of the Ministry of Construction and Housing, at mortgage bank branches. You are not obligated to take your mortgage at the bank where the certificate was issued.
- Submit the application — the issuing company's representative records your details and documents, and your score is calculated under the Ministry's procedures.
- Receive and check the certificate — verify every detail: family composition, Aliyah date, score, and amount. A single error can change the loan amount.
- Present it to the bank — the eligible buyers' loan is blended into your mortgage mix alongside the regular bank loan. Note that the certificate has a limited validity period and can be renewed if the process takes longer.
Required documents
- Teudat Zehut (ID card) with its appendix (sefach) for both spouses, including children's details.
- Teudat Oleh (immigrant certificate) — establishes your Aliyah date and the Olim bonus points.
- Family status certificates — marriage certificate, and where relevant, divorce or widowhood documentation.
- Service confirmations — military discharge certificate or national-civil service confirmation.
- Per the procedure, additional documents may be required depending on circumstances — it is advisable to verify with the issuing company before visiting the branch.
Combining with other tracks and tax benefits
The certificate is one piece of a wider benefits picture. The eligible buyers' loan can be combined with dedicated tracks, notably the home-purchase assistance track for the Ethiopian community. In parallel, an Oleh purchasing a home is also entitled to a significant purchase-tax benefit — see the purchase tax guide for new immigrants, and first-time buyers will find the full picture in our first home buying guide.
The lawyer's role
Obtaining the certificate is handled with the issuing company, but it is only one step in the purchase: aligning the mortgage approval with the contract timeline, checking the certificate's validity against the closing date, and making full use of tax benefits and dedicated tracks are all part of proper legal representation. As an Amharic-speaking real estate lawyer, Adv. David Abebe guides buyers through the entire process — in Hebrew, Amharic, or English.
Frequently Asked Questions
How much can I borrow with the eligible buyers' loan?
From tens of thousands of shekels up to about NIS 200,000, depending on your personal score and the purchase area. The exact amount appears on your certificate.
What is the interest rate on the eligible buyers' mortgage?
A subsidized rate of no more than 3%, or a discounted market rate under the track's terms. It is advisable to verify the exact terms with the issuing company at the time of issuance.
How long after Aliyah can an Oleh use the benefits?
Up to 15 years from the date of Aliyah. Olim also receive dedicated bonus points that increase the loan amount.
Does the state loan replace my bank mortgage?
No. It joins the regular bank mortgage as an additional, cheaper component of the financing mix — it does not replace it.
What if the certificate expires before I take the mortgage?
The certificate is issued for a limited validity period, but it can be renewed through the issuing company. If your purchase is taking longer, make sure the certificate will still be valid when the mortgage is drawn.
This article provides general information only and does not constitute legal advice or a substitute for individual legal counsel. Laws, figures, and procedures may change.