First steps

• Right to purchase

  Can I purchase a property in Iceland? 

  EEA citizens legally domiciled in Iceland have the right to purchase real estate. However, you must apply to the Icelandic Directorate of Immigration for a residence permit. You can find all the information you need about your rights to purchase on the Government of Iceland website

• Savings

  Saving for you first buy

  Saving for your first property can take time. You should start saving as soon as you can. Automatically transferring money to a savings account each month is the most efficient and effective way to save. Choose a savings account that suits your needs and start growing your savings. You can use the Online Bank to choose the fixed sum and which account or fund you would like it transferred to. Your Private Pension can also be used when buying a new home.

  Tax effi­cient pen­sion options

  An extra pension can be used towards your current mortgage or buying a new home. The option is only available to those who have a private pension. More information is provided here.

• Credit assessment

  Quick credit assessment

  A quick online assessment designed to give you an indication of your borrowing capacity.

  Credit assessment

  A credit assessment helps determine how much you may be able to borrow and whether you can comfortably manage your mortgage payments. Complete a full credit assessment online without visiting a branch.  

• Mort­gage cal­cu­lator

  Mort­gage cal­cu­lator

  Compare our mortgages options and find the one that  best fits your needs.  Use our mortgage calculator to compare different mortgage options.

• Finding the one

  Finding the right property

  The results from your credit assessment should give you a better idea of what you can afford. You can now start looking at real estate within your price bracket. You should evaluate several factors such as property size, price per square metre, local services, public transport, etc.

• Book an appointment

  Book an appointment with one of our mortgage advisors

  Our mortgage advisors are here to help you explore your options and find the right mortgage for your situation.

  Book an appointment with a mortgage advisor

  Mortgage Plus

  We offer an extra loan of up to ISK 3,000,000 to help you take that first step. You can find more info about this type of loan further down the page.

• The one

  You found a house!

  Finding the right house is just one step towards homeownership. It's easy to get carried away and forget some of the most essential steps of the process. You should always have the property inspected by a specialist so that you are fully aware of any damage or issues that need to be addressed. You can make an offer on the property, listing the inspection as one of the provisions for completion. That way you won´t lose out on the house but you remain protected.

• Bid accepted

  Bid accepted

  Once you have found the right property and a bid has been accepted, a formal credit score evaluation will be carried out and you can then apply for a mortgage. You will need to choose the right mortgage for you and decide how you want to pay for the property. Usually, the first payment is made when you sign the documents required for the close of sale, the second payment is made when the property is handed over and the third and final payment is made when you receive the title deeds to the property. If you intend to take advantage of your private pension savings, to pay towards the purchase, then please remember that it can take up to 8 weeks to receive your money.

• Loan

  Loan documents

  Once you have made your final decision, the appropriate loan documents are prepared and you will receive notification when they are ready to be signed. The documents are sent directly to the real estate agent. You must read them carefully to make sure they are in accordance with your wishes.

• Purchase agreement

  Purchase agreement

  A certified real estate agent will review all issues pertaining to both you and the seller, e.g., payment arrangements, payments, etc. You should ask the real estate agent to give you a list of all the documentation needed to close the sale. The signed documents are then sent to the District Commissioner. The mortgage is then paid off when the bank receives a registered mortgage bond.

• Delivery

  Property delivery

  The date of the handover should be negotiated when you complete the details of your purchase agreement.

• Waiver

  The title deeds

  The real estate agent will invite both you and the seller to a meeting where the agent will hand over the title deeds once he/she is certain that both you and the seller have fulfilled your obligations according to the purchase agreement. This process can take several months. Usually, the final payment is made once the title deeds have been handed over, but you can hold back some of the money if you have since discovered any defects that were unknown when the purchase agreement was signed. If everything goes according to plan, then the final payment will go through, and the title deeds will be handed over to you. The title deeds are then sent away to be registered and you will subsequently become the registered owner of the property. 

• Private Pension towards a mortgage

  Tax effi­cient pen­sion options

  You can apply to use your private pension savings to pay directly towards a loan. The government now offers three options regarding the tax-free payment of a private pension towards a mortgage: Read more about these options.

• Payments

  Extra payments on your loan

  You can make extra payments towards the loan via the online bank. The minimum deposit amount is ISK 1,000. Making extra payments can shorten the time it takes you to repay the loan. See further deposit instructions

• Maternity/Paternity leave

  Are you about to take maternity/paternity leave?

  If you're expecting a baby and preparing for maternity or paternity leave, you may be able to postpone your mortgage payments.

  You can apply for a delay to your payments by sending us the payment schedule from the maternity/paternity fund (Fæðingarorlofssjóður). We will review your payment schedule and subsequently ask you to sign- off on any changes to the Terms and Conditions of your mortgage. The costs associated with these changes can be found in Íslandsbanki's price list.