The 10/90 Deal in Israel — Opportunity or Trap? (The Honest Guide)

July 24, 20267 min read

In the episode I was a guest on for the podcast "How Did You Make It?", we talked about something that's sold as a deal but behaves like a gamble: 10/90 arrangements.

The idea sounds like a dream. 10% now, 90% on handover. You move into a new apartment almost without money up front. And that exact phrase, "almost without money," is the one that should set off an alarm for you. 🚨

A 10/90 deal doesn't remove the need for equity and a mortgage. It just pushes it a few years forward — and gambles on what happens in the meantime. 🎯

Let's break it down.

💡 What actually is a 10/90 deal?

The structure is simple: you pay the developer 10% of the apartment price when you sign the contract. The balance, 90%, you pay only when you get the keys, which could be in two years, three, or even more.

During that time you don't take out a mortgage, you don't make a monthly repayment, and sometimes you keep renting alongside it. On paper it looks like getting into the real estate market without the biggest barrier — equity.

But notice what's happening here: the developer pushed the big payment forward. He didn't waive it. On handover day you still need to come up with 90% of the apartment price, most of it through a mortgage. All the questions you postponed are simply waiting for you at the end.

⏳ The side the developer isn't quick to explain

The hidden assumption in every 10/90 deal is that a few years from now you'll be able to come up with the 90%. And that's exactly where things can go wrong:

❌ The mortgage isn't guaranteed. Pre-approval today doesn't guarantee approval three years from now. By then your income can change, your employment situation can become shaky, and banks' terms can shift
❌ Interest rates move. If market rates rise by handover, the monthly repayment you planned for can jump, sometimes right past what the budget can handle
❌ The apartment's value can drop. If by handover the apartment price has fallen below the price you locked in, the bank will finance a percentage of a lower value — and you'll have to cover the gap out of pocket

The most painful scenario: handover day arrives, and you have no approved mortgage. The 10% you already paid is on the line, and you're in breach of contract with the developer. Almost no one presents that risk at the sales desk.

🤔 So why is it offered at all?

Because it's an excellent sales tool for the developer, and sometimes a legitimate deal for you too.

From the developer's side: 10/90 lets them sell apartments without lowering the official price. Instead of compromising on the price in the table, they offer "convenient payment terms." The price in the statistics stays high, and that's exactly what we talked about in the episode — how apartment prices are kept up without it looking that way. 📊

From your side: if you really do have a clear path to equity by handover, 10/90 can work. For a couple selling an existing apartment within that timeframe, for those getting help from their parents, or for anyone saving at a steady, known pace — the time in between is an asset.

The difference between an opportunity and a trap isn't the deal. It's you, and whether you really have a plan for the next 90%.

🧮 The one question that makes the difference

Before you sign a 10/90, I ask for one thing: do a mortgage calculation as if you were taking it out today.

✅ How much equity will you have on handover day, really, not roughly?
✅ What's the monthly repayment on 90% of the price, even if rates are a bit higher than today?
✅ Is your income expected to stay stable, or is there a change on the horizon?
✅ What does the contract say about the scenario where a mortgage isn't granted at handover?

If the numbers work even under a conservative scenario — 10/90 can be a smart move that buys you time. If they only work assuming "it'll be fine by then" — that's not planning, it's a gamble on your home.

As of July 2026, the Bank of Israel rate stands at 3.75% and the prime rate at 5.25%. A conservative calculation starts from today's numbers, not from the hope that they'll come down.

👀 I post updates on interest rates, developer deals, and common traps in my WhatsApp channel — you can join here.

🏗️ And what about your bargaining power?

A point that came up strongly in the comments on the episode: people discovered they have more power against developers than they thought.

A 10/90 deal is essentially the developer admitting he's willing to be flexible on terms in order to sell. And once there's one bit of flexibility, there's usually more. Instead of accepting the "deal" as is, it's worth asking: what else is open to negotiation? Price? Indexation? Specification?

But to run that negotiation with confidence, you need to know your real numbers. Someone who knows how much mortgage they can truly take on comes to the table strong. Someone who doesn't signs whatever they're offered.

That's exactly where I come in. Before you consider a specific developer's 10/90, it's worth knowing what your real mortgage limit is and how much equity you're starting from.

💬 Come on, let's talk

Got a 10/90 offer and not sure whether it's an opportunity or a trap? Don't guess on your own. Together we'll do the preliminary mortgage calculation, check where the equity will come from on handover day, and find out whether the deal works even under a conservative scenario. A free intro call, no obligation.

I'd like an intro call with Amalia ←

My door's open 🌸 — Amalia

Questions I hear every week

What exactly is a 10/90 deal?

A deal where you pay the developer 10% of the apartment price at signing, and the balance, 90%, only when you get the keys, a few years down the line. In the meantime you don't take out a mortgage and you don't make any repayments. It sounds like buying an apartment almost without money, and that's exactly why you need to stop and understand the other side.

Why is 10/90 considered risky?

Because the hidden assumption in it is that you'll manage to come up with 90% of the price a few years from now. If by handover you don't meet the mortgage terms, if your income has changed, if interest rates have gone up, or if the apartment's value has dropped below the price you locked in, you can find yourself without mortgage approval and with the 10% you already paid on the line.

Is 10/90 the same as having low equity?

Not exactly. In a regular deal you need real equity on the day of purchase. With 10/90 you push that question forward, but you don't cancel it. On handover day you'll still need equity and an approved mortgage, exactly like everyone else. The only question is whether you used the time in between to prepare, or just postponed the problem.

So when does a 10/90 deal actually make sense?

When you have a clear path to equity by handover, when your income is stable, and when you've done a preliminary mortgage calculation and not just dreamed. For a couple selling an existing property or getting help from parents within that timeframe, 10/90 can work nicely. For anyone relying only on 'it'll be fine by then' — it's a gamble.

What happens if I can't get a mortgage at handover?

That's exactly the scenario you need to check before you sign, not after. The outcome depends on your contract with the developer, and in some cases you can lose part of the 10% you paid or end up in breach of contract. That's why I say: before you sign a 10/90, do a mortgage calculation as if you were taking it out today.