Inflation-indexed housing loan

Inflation-indexed housing loans carry floating interest rates for a long term and are suited to customers who want favourable loans with low interest. Mortgages are available for the purchase of real estate, refinancing of loans, new construction or housing improvement purposes. They are granted as first mortgages on real estate.

Term of loan

  • The loan has a 40-year term.
  • A supplementary loan is an amortised loan for a maximum period of 15 years.

Loan percentage

  • The maximum loan amount is up to 70% of the property's market value or valuation and a supplementary loan can be taken out to finance up to 85%.
  • The lending percentage cannot exceed the combined fire insurance assessment value and plot value of residential housing.
  • Minimum housing loan is ISK 1 million.

Instalments

  • Instalments are made monthly and the applicant can select the day of the month.
  • Either annuity payments or monthly equal instalments on the principal.
  • Repayment of supplementary loans is in the form of monthly equal instalments on the principal.

Interest

Fees

  • Fee for registration accrues to the national treasury.
  • Borrowing charge is 52500 kr..
  • Other fees as per the bank's current tariff. No excess payment fee.

Other information

  • The borrower must pass credit assessment.
  • Transfer of pledge is allowed.