Mortgages denominated in foreign currency

Mortgages denominated in foreign currency are mortgages in ISK designed for individuals who receive their income in foreign currency. This type of loan requires specific information and credit checks to meet our compliance obligations which differ from requirements outlined for traditional mortgages. According to the Consumer Mortgage Act. Loan applicants are required to have a legal domicile registered in Iceland. Mortgages are granted for the purchase or refinancing of property for own use.

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Mortgage details

  • Mortgages are only granted in the form of non-indexed mortgages with equal payments. See interest rates in the interest table.

  • You can choose between a variable non-indexed interest rate or a non-indexed fixed interest rate for 3 or 5 years.

  • We lend up to 80% of the purchase price for property purchases in the form of basic mortgages and additional loans. Our mortgage calculator is a great way to assess the right loan for your needs.

  • We refinance up to 70% of the real estate assessment.

Credit check requirements


Applicants who receive their income in foreign currency must meet the Bank's general requirements and pass all credit and payment ability assessments. Loan applicants must pass the Bank's credit check as the payment burden can increase by 40%, in accordance with the relevant laws and regulations, i.e., the applicant will need a significant monthly income surplus based on their payment ability.

Duty to provide information

The bank will inform the consumer, at least once a year, about any exchange rate fluctuations related to foreign currencies. We will also warn the consumer when the balance of the loan or regular repayments change by 20% based on the exchange rate in the mortgage agreement or by 20% since the last warning, all in accordance with the Mortgage Act.

 

Loan costs

The loan fee is ISK 159,000. Other fees are according to the Bank's price list at any given time, such as credit check fees, mortgage statements, documentation and loan registration.

Can I apply for a mortgage?


  • Individuals intending to buy or refinance a home for own use can apply.
  • Íslandsbánki will have first lien position or equal lien on the property.
  • The financial status of the applicant and property price are considered each time. Specific regulations apply to loans over ISK 60 million.
  • Each applicant must successfully complete a credit evaluation.
  • Mortgages are only offered for fully constructed properties. The property must have reached construction stage 7.

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