You can easily apply for a loan in our app or website. The process is simple and in four steps. Following each step, you can take a brake and pick up later at any time.

If you want to get a clearer picture of your payment capacity without completing a credit assessment, you can use the credit calculator to arrive at an estimate.

Book an appointment with our advisors if you need any assistance with the application.

• Apply for loan
• More about credit assessments
• Book a consultation

The maximum term of housing mortgage loans is 40 years. Inflation-indexed loans for first-time buyers have a term of 20 years.

When you take a loan, you always pay interest on the outstanding amount of the debt.

If you spread debt service over a longer period, you lower your payment burden yet pay interest throughout the period.

A shorter loan term means that you pay the loan off quicker and also shorten the time you pay interest. Shorter term loans are less expensive even though the debt service is higher.

Housing mortgages can cover up to 80% of the purchase of an asset. We finance up to 85% for first-time buyers.

For refinancing, the maximum mortgage is 70% of registered real estate value.

The housing loan must be secured by first mortgage rights or continuous rights as of first mortgage rights.

While the loan amount is based on the outcome of your credit assessment, the maximum amount of a basic loan cannot exceed ISK 90,000,000 or the combined fire insurance assessment value and the lot value.

You should also be aware that the Central Bank has introduced rules about capping debt service to a percentage of income for consumers. The cap on debt service for housing mortgages is set at 35% of monthly disposable income for consumers at the time of taking out a mortgage. The cap is raised to 40% for first-time real estate buyers.

Make an appointment to see us if you require a loan in excess of ISK 60 million.

The Central Bank has set rules that cap the debt service ratio of consumers for real estate loans at a percentage of income. The cap on debt service for housing mortgages is set at 35% of monthly disposable income for consumers at the time of taking out a mortgage. The cap is raised to 40% for first-time real estate buyers.

Calculation of the debt service cap for housing mortgages is based on a 40-year loan term and the contractual interest rate yet no lower than 5.5% interest while the cap for inflation-indexed loans is calculated based on a 25-year loan term and contractual interest rate yet no lower than 3% interest.

More information about the rules

Equal instalments entail that the part of the borrower’s instalment that goes directly to pay off the principal is fixed throughout the loan term, disregarding the impact of account. Accumulated interest is added to the instalment on the principal. Debt service is higher initially and decreases over time to finally be lower than debt service on an annuity. 

Equal payments (annuity) entail that the part of the borrower’s instalment that goes to the principal is fixed throughout the loan term, i.e. all instalments are equally high, disregarding the impact of inflation. You only pay a small amount to the principal initially while the interest is still high. As interest decreases, you pay more towards the principal and towards paying the loan off. Repayment of the principal is very slow in the beginning and asset formation speeds up towards the end of the loan term.

A borrowing charge of ISK ... is charged on both new loans and refinancing.

The borrowing charge on housing and real estate mortgages indexed to a foreign currency is ISK ....  

There is also cost associated with the credit assessment and public registration of documents.

We cancel the borrowing charge for first-time buyers. If two parties are purchasing real estate together and one of them is a first-time buyer, the borrowing charge is also cancelled.

Anybody can apply for a housing mortgage but approval is contingent on creditworthiness and the result of Landsbankinn’s own credit assessment, regardless of where other banking business is hosted.

Before applying for a housing mortgage, the first step is to complete a credit assessment to gain an understanding of the situation and options.

You should also be aware that the Central Bank has introduced rules about capping debt service to a percentage of income for consumers. The cap on debt service for housing mortgages is set at 35% of monthly disposable income for consumers at the time of taking out a mortgage. The cap is raised to 40% for first-time real estate buyers. Further details are provided in the question about the Central Bank’s debt service cap.

In order to be creditworthy, no default or reported arrears can be registered to your name, your indebtedness must be moderate and your payment capacity adequate.

Moderate indebtedness and savings positively impact credit assessment while any defaults have a negative effect. To maintain a good credit rating, it is necessary to keep borrowing within your ability to repay, and to make payments on loans at the prescribed time.

To fix the interest rate, you need to refinance the current loan. You can apply for refinancing here or through Landsbankinn’s app.

Interest rates on housing mortgages depend on the combined mortgage rate, i.e. how much you have borrowed in total against the value of the property. The interest rate depends on the mortgage ratio. Lower mortgage rate, more favourable interest. For details, see the interest rate tariff.

You are always welcome to book a consultation with us. We are happy to help.

The interest rate on housing mortgages is determined by the current interest rate tariff at each time. If the mortgage ratio is under 55% of registered real estate value upon refinancing, you pay lower interest.

The interest terms for fixed rates will be determined by the current interest rate tariff at the time you apply for refinancing.

Book a consultation and we’ll check to see if your mortgage is eligible for transfer between properties.