Last Updated on January 28, 2026

Of all the financial goals we help young professionals plan for, buying a home is probably the most popular. While homeownership is not the right choice for everyone, with housing prices in Israel becoming increasingly unaffordable, many won’t have that choice at all.

In 2015, the Government of Israel launched a program to help some lucky first-time buyers afford a home. The program, known as Dira BeHanacha (דירה בהנחה), offers discounted land to developers and lower-priced apartments for lottery winners. This guide will walk you through how it works, who is eligible, how you can register, and how to increase your odds of winning.

What are the major advantages if you win?

Bottom line is that if you win the lottery, you can get access to:

• Lower cost – depending on the project, the cost of the apartment could be significantly lower than the market price thanks to government subsidies.
• Generally in Israel you need 25-30% of the cost of the home up front, with the rest financed via a mortgage. If you win the lottery, you may only need to put down as little as 10%.
• There are also other benefits for winners in specific areas (periphery & border regions) such as grants and security allowances. The exact benefits vary from project to project but the bottom line is that for some, winning can make the difference between being able to afford buying a home or not.

Are you eligible?

Before getting started, here are the main criteria required for eligibility:

• Israeli citizenship – you can’t join before Aliyah
• Non-homeowners (חסרי דירה) – You can’t have owned a property in Israel or abroad in the last three years. (If, after one year from the first lottery, apartments remain unsold to non-homeowner applicants, they may be sold under the same conditions to those who qualify as “improving owners” (משפרי דיור)
• Age – If married or getting married within 3 months, you are eligible regardless of your age. If divorced, single, or widowed, you are only eligible if 35 or older.

Major disadvantages

While winning can present a great opportunity, there are some serious drawback you will need to account for:

• Winning a lottery doesn’t mean you’ll move in right away. In many cases, construction hasn’t started yet when winners are announced. It can take 2–4 years (or more) until the project is completed and the apartment is ready. During that time, depending on the terms, you may have to pay both rent and mortgage payments.
• Even though you “won” a discounted price, the final amount you pay can increase significantly by the time you actually sign the contract or take possession. Most of the projects are linked the building index (מדד תשומות הבניה) which can rise unexpectedly.
• At the end of the day, it is a lottery – most people that enter won’t win in any given year.
• Cities with highest odds of winning may not be where you want to live or own. As these are new projects, you won’t necessarily know in advance who your neighbors will be and how the community will develop.
• Buyers of an apartment through the program are restricted from selling it for 5 years from the date of receiving Tofes 4 (certificate of occupancy) or 7 years from the date of the lottery in which they won – whichever comes first.

A step-by-step breakdown

By taking it one step at a time – and having a lot of patience – you could be well on your way to winning. The entire process can often take several years.

Step 1: Obtain a Certificate of Eligibility (הוצאת אישור זכאות)

You must first apply for a Teudat Zakaut (Eligibility Certificate), which confirms that you meet the criteria. You will be asked a series of questions to verify your status. The application fee is 200 NIS.

Requesting a certificate of eligibility can be done online via any one of the three authorized registration companies:

• Milgam
• Alonim/Mgroup
• Maof

There isn’t much difference between each of the 3, but there seems to be slightly better feedback in favor of Milgam. If you don’t wish to apply online, you can visit a branch to apply in person. Once complete, processing can take up to 10 business days.

As part of this step, you will receive credentials to access the government portal that manages the lotteries. This portal will be used for you to view active lotteries and apply, check your current status, and renew your certificate of eligibility.

Step 2: Research and build a plan

In addition, this is a critical time to focus on your financial plan and understand what price range you will most likely be able to afford – where the money will be coming from.

As you begin researching potential locations, think strategically – are you looking for a good investment or only to buy in a place you definitely want to live? Obviously, the more flexible you are with choosing the location, the better your odds of winning. Here’s how to approach it:

Start by getting a general sense of where you might want to register. You can use this map to see locations included in previous lotteries (grey), locations expected to be included in upcoming lotteries (yellow), and locations that currently have open lotteries (green, when applicable).

Next, analyze your odds of winning in different areas. Being a resident of a particular city or an active reservist significantly increase your chances. Here is a great resource that compiles historical data from previous lotteries. It includes valuable info such as:

• סיכוי משוער -The estimated odds of winning in a given location. You’ll see both the odds for someone who qualifies as a local resident (בן מקום) (lived there for the past 3 years, or 4 out of the last 10), and for non-residents.
  If you’re an active reserve soldier, toggle the “משרתי מילואים” button in the top left to view your adjusted odds.
• סה”כ דירות – Total number of apartments offered in a specific project or city.
• מחיר ממוצע למ”ר – Average price per square meter.
• מענק ממוצע – Average government grant provided to winners in that location.
• עלות דירה אופיינית – Typical total cost of an apartment for a winner in that area.

By going through this process, you’ll hopefully be able to narrow down where you want to join the lottery. When registration opens, remember: you’ll be limited to three cities per round.

Step 3: It’s time to register

It’s lottery time. Log on to the portal and register for the lotteries in the three cities of your choice.

If you’re having trouble with the Hebrew or just need help understanding parts of the registration process — AI tools are your friend. Simply take a quick screenshot and upload it to ChatGPT, Grok, or similar tools for helpful insights and clarification.

Step 4: Wait & 🙏

After registration closes, a draw is conducted and results should be announced within a couple of weeks. If you win, you’ll be notified via email and/or SMS and invited to continue to the next stages. You may also be placed on a waitlist.

If you win and realize you don’t want to buy an apartment in the location you won in – you can cancel your registration. You must cancel before you will be eligible to join a new lottery.

If you don’t win and wish to extend your certificate of eligibility for future lotteries, you must do so before the current one expires (up to 60 days before the expiration date). It costs 50 NIS to extend your certificate. You can’t extend your certificate if your certificate has already expired or if your answers to any of the qualifying questions has changed.

Step 5: Wait some more… for a building permit.

Even if you win, construction may not start immediately. You’ll need to wait for the builder to receive final approval from the city or municipality for construction. This can take many months – or even years. If you win in a project that already has a building permit, things are likely to move a lot quicker.

Step 6: Get your mortgage ready

Once the project is approved, you’ll need to secure funding – usually via a mortgage. As a lottery winner, you may be eligible for government assistance and may qualify for favorable mortgage terms. You can read more here.

How much mortgage can you get and how much of a down payment will you need?

At a minimum you will need a 100,000 ILS down payment. But you may need more depending on the price and value of the property:

You can get a mortgage for up to 75% of (i) the appraised value of the property (up to an appraised value of 1.8M ILS) or, (ii) the price paid for the property, the higher of the two.

Example 1: Property costs 1M ILS, appraised value is 1.3M ILS

The maximum mortgage is 975,000 ILS (75% of 1.3M ILS). The theoretical down payment would be 1M (cost) – 0.975M (maximum mortgage) = 25,000 ILS, but as this is below the minimum, the down payment required is 100,000 ILS.

Example 2: Property costs 1.5M ILS, appraised value is 1.9M ILS

The maximum mortgage is 1.35M ILS (75% of the 1.8M ILS max). Your down payment would be 1.5M (cost) – 1.35M (maximum mortgage) = 150,000 ILS.

Example 3: Property costs 2M ILS, appraised value is 2.4M ILS +

The maximum mortgage is 1.5M ILS (75% of 2M ILS). Your down payment would be 2M (cost) – 1.5M (maximum mortgage) = 500,000 ILS.

Note that on top of the down payment you will need cash to cover other costs. See Step 8 below.

Additionally there have been reports of contractors requiring down payments higher than 100,000 ILS in some cases.

Using a mortgage advisor at this stage can often be beneficial.

Step 7: Choose your apartment and sign the contract

You’ll be invited by the contractor to select from the available units based on your lottery number order (higher-ranked winners get first choice.) . You will have as little as 45 minutes to select your apartment so make sure to come to this meeting prepared. Once you select your apartment you will need to pay a non-refundable deposit of 2000 NIS.

Lastly it’s time to bring in your real estate lawyer, sign a purchasing agreement, and finalize your mortgage.

Step 8: Start paying

Soon after signing the purchase agreement, you will be required to make your first payment towards the cost of the apartment.

Payment schedules vary depending on the terms of the contract but might look something like this:

• 7% at signing
• 20% within 45 days
• Around 10-13% every few months while the apartment is being built, until a total of 90% has been paid
• 10% when receiving the keys

You begin by paying the first payment(s) from your own pocket. Once you have paid the required down payment (see Step 6 above), you can then start your mortgage and have the bank pay the next required amounts directly to the contractor.

Importantly, this means that for an extended period of time you will likely have to manage mortgage payments at the same time as paying rent. This requires careful financial planning.

In addition, it is crucial to account for associated costs such as:

• Your lawyer
• A fee for the contractor’s lawyer
• Purchase tax
• Mortgage broker
• Mortgage bank fees and appraisal
• Engineer to check the apartment before moving in
• Optional upgrades
• Furniture
• The building index (מדד הבנייה)
• Air conditioning

Step 9: Move in!

Congratulations! Send us a thank you (in 5 years’ time).

Good luck!