General Info - How the Representative Rate Affects the Cost of Your Home

If you buy a house in Israel in dollars and the seller wants to be paid in Shekels, then the rate that will be used to calculate exactly how much shekels the seller will get on the date of payment is the Shar Hayatzig.

This rate is set by the Bank of Israel, daily at 3:30pm, and is potentially 1% – 2% higher than the rate the banks will be converting money in their local branches the same day. That means you may have to add between 1%-2 % of the total purchase price of the property in order to pay the correct dollar amount. If there is a major movement in world market between the time the Representative rate is set, and the time you convert your funds, it could cost you even more.

On a purchase of a property of $300 000, that means that in order to pay the seller in shekels you will likely have to set aside an additional $3 000 - $9 000 to complete the payment.

Forex Israel offers a fixed rate off the representative rate of the day so you know exactly how much it will cost. No hidden fees or costs. No speculation or risk on the movement of currency.

Contact us to find out how we can fix the cost of conversion and make the whole payment process more efficient and less costly.