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

Housing mortgages can cover up to 80% of the purchase of an asset. We finance up to 85% of the purchase price for 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.

While the loan amount is based on the outcome of your credit assessment, the maximum amount of a loan cannot exceed ISK 90 million 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 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 real estate 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.

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.

What is the minimum interest on non-indexed housing mortgages?

Interest on a housing mortgages with variable interest rates are based on the CBI’s policy rate plus a fixed interest premium throughout the loan term.

The interest can never be lower than the fixed premium. This is what is referred to as the minimum interest on non-indexed housing mortgages.

When interest on non-indexed housing mortgages are fixed for 12, 36 or 60-month periods, the loan transitions to a variable interest rate that is also based on the above once the fixed period expires.

Interest on a housing mortgages with variable interest rates are based on the CBI’s policy rate plus a fixed interest premium throughout the loan term.

The interest can never be lower than the fixed premium. This is what is referred to as the minimum interest on non-indexed housing mortgages.

When interest on non-indexed housing mortgages is fixed for 12, 36 or 60-month periods, the loan transitions to a variable interest rate that is also based on the above once the fixed period expires.