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 break 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 a loan
• More about credit assessments
• Book a consultation

The purpose of a credit assessment is to gauge your ability to service your mortgage once other expenses are considered, such as cost of living, vehicle operation, other loans, etc.

Keep in mind that it may not be advisable to utilise all your estimated payment capacity as calculated in the credit assessment. You want to be able to do more than buy food and pay off your mortgage.

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

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 90% of the purchase price for first-time buyers when the loan is fully non-indexed. If any portion of the loan is indexed, the maximum loan-to-value (LTV) ratio is 85%. Inflation-indexed housing mortgages are only available to first-time buyers.

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

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

The loan amount is based on the outcome of your credit assessment and LTV ratios of the property. There is no defined maximum loan amount but the Bank makes more stringent requirements of disposable income based on credit assessment, good creditworthiness and maximum mortgaging for very high loans.

You should also be aware that the Central Bank has introduced rules about capping the debt service of housing mortgages 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 buyers.

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

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.

Variable rates consist of a variable base rate, the same as the Central Bank's policy rate at each time, and a fixed interest rate premium that does not change. Interest payments can increase or decrease based on changes to the policy rate.

With fixed rates, you tie the interest rate for a specified period and hedge against interest rate fluctuations. Rates can be fixed for a period of 12, 36 or 60 months. The LTV ratio is up to 85% of the property’s real estate value. A lower LTV ratio translates to lower interest rates. See interest rate tariff.

Interest rates on inflation-indexed housing mortgages are fixed for the lifetime of the loan, which is 20 years and only available to first-time buyers.

Loans that carry variable rates carry no pre-payment charge.

If your loan carries a fixed interest rate, a pre-payment charge may apply, yet only if the fixed rate on comparable loans is lower than on your loan.

• The pre-payment charge can at a maximum amount to 0.2% for each whole year outstanding on a fixed-rate period and never exceed 4% of the pre-paid amount.
• A pre-payment charge applies when payment is made toward a loan and when it is paid off in full.
• Pre-payment of up to ISK 1,000,000 per calendar year can be made without incurring a pre-payment charge.

Pre-payment charge vary between credit institutions.

Our advisors can help you figure out how the pre-payment charge affects your loan.

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

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

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.

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.

The interest rate on a housing mortgage is determined by the current interest rate tariff at each time. If the LTV 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.