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 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.

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.

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 basic mortgage cannot exceed ISK 90 million or the combined fire insurance assessment value and the lot value.
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.

With fixed rates, you set 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. A lower LTV ratio translates to lower interest rates. When a fixed-rate period expires, a variable rate takes effect.

Variable rates consist of a variable base rate, the same as the Central Bank's key interest 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 key interest rate rate.

Loans can carry either a fixed or variable rate in the beginning.

For details, see the interest rate tariff.

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 terms may vary between the length of the fixed term, 12, 36 or 60 months.
You generally get a lower rate for lower loan-to-value ratios. Interest is lowest for LTV ratios up to 55% of the real estate value in the case of refinancing or up to 55% of purchase price for real estate purchases. The interest rate on housing mortgages is determined by the current interest rate tariff at each time.

No pre-payment charge applies to 12-month fixed rates.

If you wish to fix the interest on a housing mortgage, the interest terms are determined by the current interest rate tariff at the time you apply for refinancing.