Community Mortgage vs First-Home Grant
Community mortgage = 25-year state loan. First-home grant = purchase-tax discount for first-time buyers.
Side A
Community Mortgage
₪600K, 25 years
Side B
First-Home Grant
Purchase-tax discount
Comparison table
| · | Community Mortgage | First-Home Grant |
|---|---|---|
| Aid type | Long-term loan | Tax discount |
| Amount | ₪600,000 | 5%-7% of property value in tax savings |
| Payment | 0% for 10 years, 2% for 15 years | No payment (saves at purchase) |
| Eligible | Ethiopian-Israelis only | Any Israeli first-time buyer |
| Approval process | Annual lottery (~200 winners) | Automatic at purchase |
| Both? | Yes | Yes |
Your life — both, not either
Buying a home? Both apply. Community mortgage = the loan. First-home grant = purchase-tax discount. Both run on the same transaction.
Example calc
₪1.2M apartment:
- No programs: ₪240K equity + ₪960K loan @ 3% ⇒ ~₪4,500/mo.
- Community mortgage only: ₪240K equity + ₪600K @ 0%/2% + ₪360K supplementary @ 3% ⇒ ~₪3,200/mo.
- With both: also ~₪84K savings on purchase tax, reducing required equity.
Action plan
- Check eligibility for community mortgage — calculator.
- Register for annual lottery — Leumi/Discount/Igud.
- When you pick the apartment — request first-home grant from your lawyer automatically.
- Sign contract with both aids in place.
