How to Buy Property in Israel Without Converting Your Foreign Currency Today , in collaboration with Aaron Krasner, founder and owner of Anglo Mortgages
- Toviyah Stamelman
- Jun 24
- 6 min read
One of the biggest concerns facing overseas buyers today is currency risk. Many buyers see the right property in Israel now, but hesitate because the pound, dollar, Canadian dollar, Australian dollar or South African rand feels weak against the shekel.
That creates a frustrating dilemma: convert now and lock in an unfavorable exchange rate, or wait and risk the property becoming more expensive while prices move on. In many cases, however, buying property in Israel does not require converting all of your foreign currency immediately.
There are several strategies that may allow you to secure the property now while delaying some or all of your currency conversion.
The key question is
Can you secure the property today without converting all of your money today?
In many situations, the answer may be yes, depending on the property, the payment structure, the bank and your financial profile.
Option 1: Make the Minimum Down Payment Today
Many buyers assume they need to transfer the majority of their funds to Israel immediately after signing a purchase contract. In reality, that is often not the case.
Particularly when purchasing a new development or off-plan property, developers frequently offer payment schedules that allow buyers to pay a relatively small amount upfront and defer the balance for several years.
For example:
20% upon signing
80% upon completion in two, three or even four years
In this scenario, you may only need to convert the initial 20% today while leaving the remaining funds invested overseas until they are actually needed.
This allows you to secure today’s property price while reducing your immediate exposure to the exchange rate.
Example A UK buyer purchasing a ₪4,000,000 apartment on a 20/80 payment schedule may only need to fund ₪800,000 today while leaving the remaining capital overseas until completion. Instead of converting the entire purchase price immediately, they can potentially spread the currency exposure over a much longer period.
Option 2: Use a Back‑to‑Back Loan
Many buyers are unaware that it may be possible to make a shekel down payment without converting their foreign currency at all.
In certain circumstances, an Israeli bank may offer what is commonly known as a back‑to‑back loan.
In simple terms, your foreign currency remains on deposit with the bank as collateral while the bank lends you shekels against those funds.
The result is that you can complete your down payment while keeping your money invested in its original currency.
If exchange rates subsequently move in your favour, you may be able to convert the funds later and repay the loan.
For buyers who believe their currency may strengthen over time, a back‑to‑back loan can provide a way to secure a property today without committing fully to today’s exchange rate.
Option 3: Prove the Funds Instead of Transferring Them
Another common misconception is that all of your purchase funds must already be sitting in Israel before a bank will release mortgage funds.
In many cases, the bank simply wants comfort that the funds exist and will be available when needed.
If you can demonstrate ownership of sufficient overseas savings, investments, cash reserves or other liquid assets, the bank may be willing to proceed with the mortgage process even though much of your equity remains overseas.
This can be particularly valuable when combined with a low initial payment schedule.
The bank gains confidence that you have the resources to complete the purchase, while you retain flexibility regarding when and how you convert your money into shekels.
Option 4: Use a Contractor Financing Structure
Many new developments in Israel currently offer contractor financing structures such as:
10/90 payment plans
15/85 payment plans
20/80 payment plans
These structures allow buyers to secure a property today while paying a significant portion of the purchase price only upon completion.
For overseas buyers concerned about exchange rates, this can create valuable flexibility.
Rather than converting all funds today, buyers may be able to delay a substantial portion of their currency conversion while still securing the property and today’s purchase price.
However, it is important to understand all associated costs, indexation exposure (Madad), financing terms and legal obligations before proceeding.
The Real Goal: Separate the Property Decision from the Currency Decision
Many buyers assume they must make two major decisions at exactly the same time:
Do I want to buy this property?
Do I want to convert my foreign currency today?
In reality, those decisions can often be separated.
With the right structure, it may be possible to secure the property today while postponing some or all of the currency conversion decision until a later date.
That flexibility can be invaluable when exchange rates are volatile and nobody knows where the market will be six months, one year or three years from now.
The objective is not necessarily to predict the currency market perfectly.
The objective is to create a strategy that provides flexibility, reduces unnecessary risk and allows you to move forward with confidence.
Every Buyer’s Situation Is Different
The right solution will depend on a range of factors, including:
Your country of residence
Available capital
Mortgage eligibility
Purchase timeline
Type of property
Payment schedule
Currency exposure
Investment and relocation objectives
A strategy that works well for one buyer may not be suitable for another.
For this reason, it is often worth reviewing all available options before making a decision based solely on today’s exchange rate.
Final Thoughts
While currency movements can feel frustrating, they should not automatically prevent you from exploring opportunities in the Israeli property market.
In many cases, there may be ways to secure a property today while maintaining flexibility regarding when and how your foreign currency is converted.
Before deciding whether to wait, convert funds immediately, take a mortgage, use a contractor financing structure or explore alternative solutions, it is worth understanding all of the options available.
At Israel Properties by Stamelman & Partners, together with our network of trusted mortgage, legal, foreign exchange and financial professionals, we help local and international buyers evaluate the available strategies and structure a purchase plan that aligns with their goals, timeline and financial circumstances.
If you would like to discuss your specific situation, we would be happy to arrange a confidential consultation.
Our Collaboration with Anglo Mortgages
This article was prepared in collaboration with our good friend and colleague Aaron Krasner, owner and founder of Anglo Mortgages https://www.anglomortgages.com/ . Over many years of working together, we have helped numerous clients navigate the Israeli mortgage system, structure smart financing plans and feel more confident about buying a home or investment property in Israel.
Bringing the real estate and mortgage perspectives together allows us to look at your purchase not just as a property transaction, but as a complete financial strategy. If you are considering a purchase, we would be delighted to explore how we – together with Aaron and the Anglo Mortgages team – can support you every step of the way.
About
Toviyah Stamelman Founder & Owner of Israel Properties by Stamelman & Partners
Licensed Real Estate Practitioner in Israel 3175485 and Master Real Estate Practitioner South Africa, specializing in buyer representation, Sellers Representation new projects, investment property, Aliyah planning, project management, and strategic property advisory across Israel.
Working with international and local buyers, investors, and Olim from the UK, USA, South Africa, Australia, Canada, and beyond.
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DisclaimerThe information contained in this article is provided for general educational purposes only and should not be considered legal, financial, tax, mortgage or investment advice. Lending policies, mortgage approvals, collateral requirements, contractor financing arrangements and foreign currency solutions vary between banks, lenders and individual circumstances. Buyers should obtain independent legal, financial, mortgage and tax advice before making any property purchase or financing decision.
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