Mortgages denominated in foreign currency

Mortgages denominated in foreign currency are mortgages in ISK designed for individuals who receive their income in foreign currency.

Mortgage details

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

  • For non-indexed mortgages you can choose between a variable non-indexed interest rate or a non-indexed fixed interest rate for 3 or 5 years. For indexed mortgages you can choose between a variable indexed rate or fixed indexed rate, the interest rate is reviewed every 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 can lend up to 70% of real estate valuation when you refinance.

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 75 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.

Q & A