Our range of options
We offer both indexed and non-indexed loans as well as the option of mixing the two. Explore our options to see what suits you.
Next steps
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Our loans
A mortgage covering 70% of your property value can be paid over a 40 year period and an additional mortgage covering up to 80% can be paid over a period of 20 years
You can either pay the same amount each month or pay less initially.
You can pay towards your loan or pay off your loan using the online bank. See instructions
Finding the money to pay for your first home can be tough. We offer an extra loan of up to ISK 3 million to help you take that first step. Read more about first buy.
Indexed, Non-Indexed or Hybrid Mortgage
How do our mortgages differ?
Non-Indexed | Indexed | Hybrid Mortgage |
The payments are initially higher but you can pay off your mortgage at a quicker rate. | Payments are initially lower because part of the financing costs are added to the principal amount but paid in full during the loan period. | A hybrid mortgage is both indexed and non-indexed. You decide the ratio and enjoy the benefits of both. |
Two types of mortgages, with a variable rate or fixed rate for a 3-5 year period | Two types of mortgages, with a variable rate or fixed rate, the interest rate is reviewed every 5 years. | You can mix and match a Hybrid Mortgage so that part of the loan has a fixed rate and part of it has a variable rate. |
The payments are initially higher | The payments are initially lower | You can divide the loan amount into two or more loan types. This gives you the option of creating an indexed, non-indexed ratio to suit your needs. |
It is possible to fix the interest rate on non-indexed mortgages for 3 or 5 years with a so-called term change. | Indexation is like interest that is added to the principal of the loan. | With a mixed mortgage, it is therefore possible to spread interest rate risk and choose both variable and temporary fixed interest rates. |
Non-Indexed Mortgage
The payments are initially higher but you can pay your mortgage off sooner with a Non-Indexed Mortgage.
Changing to fixed rate
You can contact us if you wish to change your mortgage loan from variable interest rate to fixed interest rate for non-indexed loans.
Our fixed rate mortgage offers a fixed interest rate for the first 3-5 years, which means that payments remain stable. The interest rate becomes variable once the fixed period ends. You will have to pay a fee if you pay off the mortgage during the fixed rate period.
Interest rate roof
Our interest rate roof option offers our non-indexed customers a safety net when interest rates rise.
Lending period and fees
We provide a basic loan of up to 70% of the real estate appraisal. Borrowers are also offered to take out additional loans up to 80% of the purchase price of residential housing. Special rules apply for loans in excess of 60 m.ISK.
We offer a special extra loan up to a maximum of ISK 3,000,000. for those who are buying housing for the first time. The loan is in addition to the traditional 80% housing financing of the purchase price, but a maximum of 90% of the purchase price of the housing.
When refinancing, we lend up to 70% of the real estate valuation.
Fixed rate or variable rate?
Which should you choose? Have a look at the differences between the two. It's actually much simpler than you thought.
Fixed rate | Variable rate |
Payments are stable | Payments vary according to the interest rate each time |
Fixed interest rates for Non-Indexed Mortgage is a 3-5 year period. Interest rate becomes variable once fixed rate period is complete. | Variable interest rates for Non-Indexed Mortgage depend on the bank's financing costs and market conditions |
Fixed interest rate for Indexed Mortgages is reviewed every 5 years | Variable interest rate for Indexed Mortgages: Interest rates depend on the bank's financing costs and market conditions |
Fixed rate mortgages charge a prepayment fee if the amount is paid during the fixed rate period. You can pay an additional ISK 1 million towards your fixed rate mortgage every year without paying a fee | Non-indexed loans are converted to variable interest rate loans, once the fixed interest period ends, and the prepayment fee is waived. |
Initially lower payments | Initially higher payments |
Equal payments or equal installments?
Equal payments | Equal installments |
We pay approximately the same total amount each month | We pay the same amount directly to the principal each month |
Green Mortgages
We offer more favorable terms on mortgages when financing environmentally friendly housing that has received approved environmental certification.
No borrowing fee is charged for green mortgages and in addition we provide an 0.10% interest discount on mortgage terms if the property is eco-certified.
Q&A
It's normal to have questions when you are deciding on a mortgage that suits you . Here we answer frequently asked questions.
Book an appointment with an advisor
It costs nothing to come to us for mortgage advice. If you want to review the matter with a specialist, you can book an appointment below
Want to know more?
Do you need help? This information might help. If you need further assistance, then you can chat with us via the online chat or call us.
