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.
Use this mortgage calculator to calculate estimated monthly mortgage payments.
Our loans
Non-indexed mortgages have a loan term of up to 40 years; indexed mortgages have a loan term of 30 years. Mortgages have a fixed interest rate, with the option to repay in equal instalments or in equal payments (annuity mortgage).
Specific lending rules apply to mortgages above ISK 75 million.
You can either pay the same amount each month or pay less initially.
Finding the money to pay for your first home can be tough. We offer an extra loan of up to ISK 7.000.000 to help you take that first step. Read more about first buy.
You can pay towards your loan or pay off your loan using the online bank. See instructions
Mortgages and loan-to-value ratios
You can borrow 80% of the purchase price. When the loan-to-value ratio exceeds 50%, an interest margin is added to the base rate based on the LTV.
We also offer additional borrowing of up to ISK 7,000,000 to first-time buyers, in addition to the traditional 80% financing of the purchase price - the maximum is 90%. When refinancing a mortgage, we offer up to 70% of the property valuation. An interest margin is added to the base rate if the LTV exceeds 50%.
Our mortgage calculator shows you the interest rate for each mortgage based on the LTV. Go to the mortgage calculator.
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. |
The payments are initially higher | The payments are initially lower | |
Indexation is like interest that is added to the principal of the loan. | ||
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 |
Initially lower payments | Initially higher payments |
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.
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
FAQs
It's normal to have questions when you are deciding on a mortgage that suits you . Here we answer frequently asked questions.