Calculator
Mortgage Affordability Calculator
How large a mortgage you can take, based on your income and obligations.
Before you go looking for an apartment, it is worth knowing what realistic monthly payment fits your budget - not only what the bank will approve at the maximum. The calculator shows both the banking ceiling and a recommended payment for cash-flow comfort.
Maximum by banking policy (up to 40% of income)
₪11,300 per month
A mortgage of up to about ₪1,932,979
Actually recommended payment (30% of income, and no more than what is left after your expenses)
₪9,600 per month
A mortgage of up to about ₪1,642,176
This is a general estimate only and does not constitute an in-principle approval. The actual bank check includes additional parameters such as credit score and employment seniority.
How the calculator works
You enter your and your partner's net monthly income, your fixed monthly expenses (excluding housing), and the existing monthly payment on other loans. The calculator computes two scenarios: the maximum amount the banks generally approve based on income alone (up to 40%), and an actually recommended amount that also takes your real expenses into account - not only a blanket rule of thumb. You choose an interest rate and a term to translate each scenario into an approximate mortgage amount.
The formula behind the calculation
Maximum permitted payment = (total income × 40%) minus existing payments - this is the official regulatory formula the bank checks. Actually recommended payment = the lower of (total income × 30%) and (total income minus fixed expenses minus existing payments) - so the recommendation does not exceed what you really have left at the end of the month. The approximate mortgage amount is calculated backwards from the monthly payment, according to the rate and term you chose.
What the calculator does not include
It does not replace the bank's actual calculation, which also checks the credit score, seniority at work and other factors
It does not include irregular income (bonuses, self-employed income), which some banks treat differently
The rate and term you enter are only an estimate - the final mix approved for you may include several tracks at different rates
Why it matters
The Bank of Israel limits the banks to approving a monthly payment of up to 40% of disposable income, but this is a regulatory ceiling, not a recommendation - and it also does not take your actual living expenses into account. A family with high income but high fixed expenses (current rent, private education) may receive an in-principle approval for a payment that in practice leaves no room to breathe. That is why the calculator also checks what is actually left for you, not only the regulatory ceiling.
Frequently asked questions
What is the difference between the "maximum according to banking policy" and the "actually recommended payment"?
The banking maximum is only 40% of income, regardless of your expenses - this is the formula the bank officially checks. The actually recommended payment also takes your fixed expenses into account, to give a realistic picture of what you can truly afford without cash-flow pressure.
Is variable income (bonuses, commissions) counted in the bank's check?
Usually yes, but partially rather than in full, and it depends on the specific bank's policy. It is worth checking this in advance with a mortgage advisor.
What happens if my repayment capacity is not enough for the apartment I wanted?
There are several options: increase your equity, look for a property in a lower price range, extend the mortgage term (which lowers the monthly payment but increases total interest), or add another borrower to the application.
Is repayment capacity the same in all banks?
Not necessarily - each bank has a slightly different risk methodology, so the same financial profile can receive slightly different approvals at different banks. This is one of the reasons to apply to several banks in parallel.
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