Who is eligible for home purchase assistance in Israel, and what is that assistance actually worth? Israel has several government tracks: an eligibility mortgage (mashkanta betnaei zakaut), the Dira Behanacha discounted housing program, purchase tax (mas rechisha) relief for new immigrants and people with disabilities, and benefits for olim through the Ministry of Aliyah and Integration. Each track has its own conditions, and the word “eligibility” (zakaut) means something different in each of them. In this guide we go through the tracks as they operate in 2026, the conditions and the path to an eligibility certificate, and we also say honestly how much the assistance is worth for anyone looking for an apartment in north Tel Aviv or the Sharon region.
Which types of home purchase assistance in Israel exist in 2026
| Track | What you get | Who it is for | Who administers it |
|---|---|---|---|
| Eligibility mortgage | A loan at a reduced rate as part of the mortgage | People without a home, according to points | Ministry of Construction and Housing, through the banks |
| Dira Behanacha (discounted apartment) | A new apartment at a reduced price, by lottery | People without a home, and in some tenders also those upgrading their housing | Ministry of Construction and Housing and the Israel Land Authority |
| Purchase tax relief | A reduced tax rate | Olim, people with disabilities and victims as defined in the regulations | Israel Tax Authority |
| Assistance for olim | Increased loan eligibility and additional terms | Olim within 15 years of aliyah | Ministry of Aliyah and Integration and Ministry of Construction and Housing |
An important distinction: the eligibility mortgage and Dira Behanacha require advance approval of eligibility from the Ministry of Construction and Housing. Purchase tax relief does not require such a certificate, but rather meeting the definitions in the regulations and submitting documents to the Tax Authority when the transaction is reported.
Who is eligible for home purchase assistance in Israel: the definition of a person without a home
Most tracks are intended for someone defined as “without a home” (chasar dira). In the Dira Behanacha program, for example, a person without a home is someone who, together with their spouse, did not own an apartment or a share of an apartment exceeding one third during the three years before the eligibility approval was issued, and holds no rights in an apartment under construction. This definition differs from the definition of a single apartment for purchase tax purposes and from the bank’s definition, especially regarding inherited shares. Anyone who holds any share in an apartment should read the article who is considered an apartment owner before applying.
Beyond being without a home, the eligible groups are usually married couples or cohabiting partners (yeduim batzibur), single parent families, and single people under narrower conditions and at an older age. In Dira Behanacha, single people are eligible from age 35. Each track has detailed conditions, and they are updated from time to time by ministry decisions.
The eligibility certificate: how to get one and what it determines
The eligibility certificate (te’udat zakaut) is the document confirming eligibility for a subsidized loan and its amount. It can be issued through the bank where you take the mortgage or through the information centers operated by the Ministry of Construction and Housing. The amount of eligibility is determined by a points system that takes into account, among other things:
- Years of marriage and number of children.
- Number of siblings, as an indicator of the help the extended family can give.
- Military or national service.
- Location of the purchase: in national priority areas the loan is higher.
The certificate is valid for one year and can be renewed. It is worth issuing it before you start looking for an apartment, so that you know in advance the amount you can use and include it in your mortgage planning.
What to prepare for the application
- Identity cards of both spouses, including the appendix (sefach) with the children’s details.
- Parents’ identity cards with the appendix, to prove the number of siblings.
- Confirmation of the period of military or national service.
- A marriage certificate, or documents attesting to cohabitation for unmarried partners.
- If you hold a share in an apartment: a land registry extract (nesach tabu) and inheritance documents, to examine whether the share exceeds one third.
The eligibility mortgage: what it gives in practice
The loan is granted as a separate track within the mortgage, and its terms are fixed by ministry decisions:
- Interest: half a percentage point below the average mortgage rate published by the Bank of Israel at the time the loan is taken, and no more than 3%.
- Structure: a fixed rate, linked to the consumer price index.
- Early repayment: no early repayment fee on the eligibility track itself, a real advantage in years when capitalization fees on fixed tracks are high.
- Amount: usually tens of thousands of shekels and up to about ₪200,000, depending on points and area.
A numerical example
The example is for illustration only. A couple is eligible for a loan of ₪200,000 over 25 years. At 3% interest, the monthly repayment on this portion is about ₪948. If the alternative track at the bank, fixed and index linked, stood at 4.2%, the repayment would be about ₪1,078. The saving is about ₪130 a month, and about ₪39,000 over the whole period before the effect of the index. That is a real sum, but it does not change the order of magnitude of a deal. If the bank offers a rate below 3% on the fixed index linked track, the advantage shrinks and may even disappear, so compare before deciding.
Dira Behanacha: the conditions and the 2026 lotteries
Dira Behanacha is the program that replaced Mechir LaMishtaken and Mechir Matara. The state markets land to developers on condition that they sell some of the apartments to eligible buyers at a price below market, and the apartments are drawn by lottery among the registrants. The main conditions:
- A valid eligibility approval before registering for the lottery.
- Meeting the definition of a person without a home, and in some tenders a separate track for those upgrading their housing.
- The discount is set in each tender and is capped.
- Winners commit to conditions such as a restriction on selling and renting for a period set in the program terms.
- In the lotteries, some apartments give priority to residents of the locality, and in 2026 priority was also set for reserve soldiers.
Before registering, check the location, the expected delivery date and the terms of the specific project. A Dira Behanacha apartment is a new apartment from a developer, so all the rules of buying from a developer apply: the Sale Law guarantee, indexation and a payment schedule. We expanded on these in the guide to developer 20/80 deals.
How to decide whether to register for the lottery
Registration itself is not binding, but winning is. Before registering, it is worth asking three questions: would you live in the town and neighborhood where the project is being built even without the discount, does the payment schedule with the developer fit your equity and your mortgage, and do the restrictions on selling and renting fit your plans for the coming years. If the answer to any of them is no, the price discount may be worth less than it seems in the lottery announcement.
Groups with special benefits
New immigrants
Olim are eligible for home purchase assistance within 15 years of the date of aliyah, with an eligibility certificate issued by the Ministry of Construction and Housing and the Ministry of Aliyah and Integration. In addition, olim enjoy significant purchase tax relief when buying a residential apartment during a period beginning one year before aliyah and ending seven years after it. The exact rates appear in the article purchase tax 2026. Anyone who is not yet an Israeli resident and is considering buying as a foreign resident will find all the steps in the article a foreign resident buying an apartment.
People with disabilities and victims
People with disabilities of the degree and type defined in the regulations, blind people, victims of hostile action and bereaved families are entitled to a reduced purchase tax rate when buying a residential apartment, subject to approvals from the competent body. The definitions are very precise, so the documents are attached already when the transaction is reported.
Reserve soldiers
In recent years reserve soldiers have been given priority in the Dira Behanacha lotteries. The extent of the priority and the definition of who qualifies are set in each lottery, and it is worth checking them in the ministry’s announcements.
What the assistance is worth in north Tel Aviv and the Sharon
It needs to be said plainly: in high demand areas, government assistance covers a small part of the deal. An eligibility loan of ₪200,000 is about 5% of an apartment at ₪4 million, and the interest saving on it is a few tens of thousands of shekels over the whole period. Dira Behanacha lotteries in Tel Aviv and the Sharon cities are rare, and the number of apartments in them is small relative to the number of registrants.
That does not mean there is no point in checking. A couple eligible for the loan should take it into account, because it is cheap and flexible. An oleh buying a first apartment within the period saves on purchase tax an amount that can reach ₪100,000 and more. But the assistance is a layer in the financing plan, not the plan itself. Anyone looking for a first apartment in the north of the city will build the budget mainly on equity, the mortgage and the right choice of neighborhood and property type. For a comparison between the areas, you can read about the neighborhoods of north Tel Aviv.
Common mistakes when applying for assistance
- Assuming an inherited share does not matter. A share exceeding one third of an apartment undermines the definition of a person without a home, even if it is not counted for purchase tax purposes.
- Selling an apartment and registering immediately. The three year test in Dira Behanacha looks backward, and someone who sold recently is not yet without a home.
- Discovering eligibility too late. After the mortgage is signed, it is hard to add the eligibility track. Issue the certificate before starting the process at the bank.
- Registering for a lottery without checking the project. Winning requires meeting a payment schedule with a developer. A winner who withdraws may lose their standing in future lotteries, according to the program rules.
- Counting the assistance as part of your equity. The eligibility loan is a loan, not a grant, and it is included in the financing ratio. It does not replace the equity the bank requires.
How to combine assistance with a regular mortgage
- Issue an eligibility certificate and check the amount.
- Ask several banks for a mortgage offer that includes the eligibility track. The loan is granted through the bank where you take the mortgage.
- Compare the rate on the eligibility track with the rate the bank offers on a fixed index linked track. If the bank’s offer is better, it may be preferable to give up the track.
- Remember that the eligibility loan is part of the mortgage: it is included in the financing ratio and in the repayment to income calculation, and is not an addition beyond them.
- If you are entitled to purchase tax relief, make sure the lawyer attaches the documents to the report, so that the tax is calculated correctly from the start.
Before choosing an apartment, it is also worth knowing what it is really worth. A property valuation helps you understand whether the asking price is reasonable before you reach the bank’s appraiser.
Frequently asked questions
Who is eligible for an eligibility mortgage?
People without a home who accumulate enough points under the Ministry of Construction and Housing system, mainly couples and families. The points are based on years of marriage, children, siblings and military or national service.
What is the interest rate on an eligibility loan?
Half a percentage point below the average rate published by the Bank of Israel, and no more than 3%, at a fixed rate linked to the index.
How long is an eligibility certificate valid?
One year from the date of issue, and it can be renewed.
Can single people receive home purchase assistance?
Yes, under narrower conditions. In the Dira Behanacha program, for example, single people are eligible from age 35 if they meet the definition of a person without a home.
Can I receive both an eligibility loan and a Dira Behanacha apartment?
Yes. A Dira Behanacha winner who is eligible for the loan can include it in the mortgage taken to buy the apartment, subject to the bank’s terms.
Does a new immigrant need an eligibility certificate to receive purchase tax relief?
No. Purchase tax relief is granted under the tax regulations and is requested in the report to the Tax Authority. The eligibility certificate is required for the subsidized loan.
Before you count on the assistance
Government assistance is worth checking, but the big decisions in a purchase are still location, price and financing. If you would like to build a realistic budget for buying in north Tel Aviv or the Sharon region, and to understand which type of property fits it, we will be happy to help. You can contact us or call 077-500-4600 (+972 77 500 4600).
The information in this article is general and is not legal, financial or tax advice. The terms of each track are updated from time to time and should be checked on the websites of the official bodies.
