Loan for Mortgage Repayment

Loan for closing or reducing the mortgage

Who is this page for?

Bereaved Parents

Widows and Widowers

Guardians of Orphans

What can you receive?

Parents, widows and widowers, and guardians of orphans who have not received assistance from the department for purchasing a home or relocating may apply for a loan to partially or fully repay the mortgage taken for their current and sole residence.

The loan can be granted on the condition that it reduces the monthly repayment amount of the original mortgage, after a maximum extension of the mortgage repayment plan by the bank.

Bereaved parents

Widows and widowers

Up to 655,211 ₪ when the mortgage was taken for the purchase of a first home.
Up to 328,320 ₪ when the mortgage was taken for relocation.

The approved loan will be registered in favor of the mortgage bank.

Grants:

258,036 ₪ - grant for a widow with orphans up to the age of 30, who are unmarried and live with her in her home.
161,789 ₪ - grant for a widow with orphans over the age of 30, who are unmarried and live with her in her home.

You can read more about the grant for mortgage reduction on the page on relocation.

Guardians for orphans

Assistance in financing housing expenses for a home used as the orphan's residence, for guardians who have not received mortgage repayment assistance.

A fixed monthly amount of 2,500 ₪ for the three years following the loss or the enactment of the law amendment (effective from January 15, 2025), or until the youngest orphan reaches the age of 21 - whichever is earlier.

In cases where the guardian has partial possession of the home - partial rent or mortgage payments - the assistance will be provided proportionally to the guardian's share.

For example: if the rent is 4,000 ₪ and the guardian and another person are jointly listed in the rental agreement, the department will reimburse partially (according to the number of individuals listed on the mortgage), meaning 50%, which is 2,000 ₪.

How guardians can receive assistance:

A rental agreement in the guardian's name must be submitted, specifying the rental period.
Assistance will be provided according to the dates specified in the rental agreement and for no more than 36 months.

Bereaved parents and widows experiencing a second loss

Bereaved parents and widows experiencing a double loss are eligible for 200% support.

It is possible to choose to receive one 200% grant or two separate 100% grants.

How to apply?

For the review and approval of the application, please submit through your account:

Form of application for housing assistance.
Purchase agreement in the case of a first home.
A document by the Tax Authority detailing any registration of properties you own and have owned.
Sale and purchase agreement in case of relocation.
Bank confirmation of mortgage details: start and end date, principal, interest rate, indexation details, monthly repayment amount, outstanding balance, early repayment terms, copy of the request to the bank for mortgage restructuring, and the bank's response.
Submit the relevant form for you

Form of approval for transferring personal details to the International Bank for bereaved parents - in the case of a couple, both parents must sign the form

Form of approval for transferring personal details to the International Bank for widows

If necessary, we will contact you and request additional documents.

My account

What happens after you apply?

We will respond within 17 business days from the receipt of all required document. If there is any delay, we will make sure to inform you.
After eligibility is approved, grants for widows will be transferred via the monthly benefits slip, and amounts for loan repayment will be transferred directly to the bank account.

Stages of loan approval

In the first stage, submit your application and documents through your account.
The application will be reviewed by a welfare worker, who will respond within 26 business days regarding loan eligibility.
Transferring your details to the bank - after receiving your details, the bank will send you a notification that the loan can be received at any branch of the First International Bank of Israel, at your choice.
The referral for the approved loan will be valid 4 months only, and the loan must be utilized at the bank before its expiration.
Loan utilization - the bank will notify you via SMS about the transfer of the loan to your account. From this stage, the loan repayment amount will be deducted monthly from your benefits.

Loan guarantee

In some cases, it is necessary to present guarantors to the bank for the loan. The guarantors will commit to repaying the loan to the bank if you are unable to pay.

The guarantors can sign the guarantee at any of the bank's branches, not just the branch where you chose to apply for the loan.

Modification or cancellation of the loan

If you need to cancel an approved loan, or shorten or extend the repayment term, please inform the welfare worker.