Changes to cri­ter­ia for new hous­ing mort­gages

Landsbankinn has made changes to the maximum loan term for new inflation-indexed mortgages and the loan-to-value (LTV) ratios for both indexed and non-indexed mortgages.

• The maximum loan term for indexed mortgages will be reduced from 30 years to 25 years. First-time buyers will still have the option to take out indexed mortgages with a 30-year term.
• For real estate purchases, primary loans will now cover up to 60% of the purchase price, with the possibility of obtaining an additional loan to cover up to 80%. First-time buyers can receive an additional loan of up to 85% of the purchase price.
• For refinancing, the primary loan will now be limited to 60% of the property's real estate value, with an additional loan available for up to 70% of the real estate value.
• Changes to LTV criteria do not affect the Bank’s existing borrowers. Customers who already have primary loans that exceed 60% of the real estate value will still be able to refinance them as primary loans.

The changes enter into effect as at 26 November 2024.