How it works
How do you calculate repayment capacity?
Banks in Israel mainly look at the debt-to-income ratio — how much of the available income goes to loan repayments. As a rule of thumb, the total monthly payment on all loans should not exceed about40% of the household's net monthly income, after deducting existing commitments.
From the maximum monthly payment, you can derive the Maximum mortgage amount based on the term and the rate, and adding the down payment gives the total purchase budget — the amount for which you'll be able to buy a property.
The calculator provides only a preliminary estimate. Each bank also weighs employment seniority, credit history, the type of property, and more. A personal advisor from NextCredit will build a precise loan mix for you across all the banks.
