Credit Assessment

If a loan is to be taken with a pledge of property, a credit assessment must be available before the loan is granted. It is sensible to have all documents ready when a credit assessment is requested so that the credit assessment process is not delayed unnecessarily. The following supporting documents are required for a credit assessment by Landsbankinn.

Real estate purchases

  • All basic documents.
  • Signed and accepted purchase offer, if applicable.
  • Value assessment/Offer to purchase property owned by the applicant which will be sold to finance the purchase (a value assessment from a certified realtor).
  • Assessed value of motor vehicle owned by the applicant which will be sold to finance the purchase (value assessment from a vehicle salesman).
  • Certificate of encumbrances on vehicle owned by the applicant. Can be obtained from the bank subject to tariff. Confirmation from financial undertaking of applicant's savings.
  • Information on estimated sales value of securities listed on a securities market or stock exchange.
  • If the property is under construction, the property must be at construction stage no. 7, a budget must be submitted and the estimated value of the property once completed from a certified realtor.
  • To purchase/construct property, the applicant must demonstrate how the property is financed 100% (equity + loan = purchase price or construction cost).

Real estate mortgage (Refinancing)

  • All basic documents.
  • Value assessment (from a certified realtor) of property owned by the applicant based on the current condition of the property.
  • If the property is under construction, the property must be at construction stage no. 7, a budget must be submitted and the estimated value of the property once completed from a certified realtor.

Basic documents

  • A signed and completed application for a loan or credit, including, for instance, details of the amount of the loan applied for, term, collateral and disbursement. If the application is not signed, it must be accompanied by a statement of the applicant’s liabilities and guarantees with other financial undertakings (statement of liabilities from Credit Info), or a Power of Attorney authorising Landsbankinn to request such a statement on behalf of the applicant.
  • A copy of the most recent income tax return filed by the applicant, attested to by the taxation authorities or a certified public accountant.
  • Confirmation of applicant's income during the past three months.
  • Confirmation of outstanding balance and payment burden of all debt that is not on the statement of liabilities.
  • A certificate of encumbrances on property owned by the applicant if applicable. Can be obtained from the bank subject to tariff.

Income, liabilities and assets abroad

  • Comparable documents on income, liabilities and assets abroad must be submitted.
  • The applicant must explain or translate the documents into Icelandic.
  • A credit report must be submitted if the applicant is domiciled abroad or a foreign national.

In case of a divorce/separation

  • An agreement on the division of assets taking into account all assets and liabilities, signed, dated and witnessed by two persons.

Income

  • Copies of pay slips for the past three months.
  • A return receipt for income tax withheld at source on income from self-employment (if applicable).
  • Confirmation of regular pension payments or support, such as retirement pension or child support.
  • Confirmation of expected student loan, in the case of students.
  • If no pay slips are available, e.g. in the case of applicants who are not in paid employment, satisfactory confirmation must be provided of income, cf. taxable income as per tax return.
  • If an applicant is commencing work for a new employer, or his/her income increases, confirmation from the employer of his/her hiring and wage terms must be available.

Liabilities

  • Copies of receipts for the latest instalments paid on all loans that are not on the statement of liabilities. Such receipts must include information on the type of loan, date of first instalment, interest rate, original number of instalments, number of instalments remaining, interval between instalments, index, creditor, loan number, original amount and outstanding balance.
  • Copies of loans or loan documents for which no instalments are yet due.
  • A summary of other debts, such as credit cards (instalment payment agreements), student loans, car loans, etc.

Document validity

  • Certificates of encumbrances, statement of liabilities and other documents upon which the credit assessment is to be based may as a rule not be more than one month old.

* Please note that Landsbankinn may request other documents in addition to those listed here.