Refinancing

Refinancing can be the sensible option when your circumstances change.

Why should I refinance?


Do you want lower payments each month?

Do you want to own your house sooner?

Are you able to do the following:

Are you able to do the following:

Lengthen the lending period

Shorten the lending period

Refinance at a lower interest rate

Make extra payments on your mortgage

Change your non-indexed mortgage to an indexed mortgage

Change your indexed mortgage to a non-indexed mortgage

Make equal payments each month rather than equal payments on the principle amount each month 

Make equal payments on the principle amount each month rather than equal payments each month

Does it pay to refinance?


There are definitely things you should consider. Refinancing can mean prepayment fees on your old mortgage but this is often reimbursed by securing a lower interest rate on your new mortgage.

Excess payment fee

Fixed rate mortgages and mortgages taken on the 1st of November 2013 or later charge an excess payment fee if the amount is overpaid during the fixed rate period. There is no fee for variable rate mortgages. The fee is charged in accordance with the bank's price list each time.

You can pay up to ISK 1 million into your mortgage each year without paying an excess payment fee. The excess payment fee is only charged for payments over ISK 1 million each year. The fee is only added to regular payments on your mortgage during the fixed rate period.

Costs associated with refinancing


  • The cost of refinancing a current Íslandsbánki mortgage is ISK 32,500

Credit score evaluation


What is a credit score evaluation?

Your credit score shows how capable you are of paying your mortgage payments.

How can I be evaluated?

You can receive an instant credit score evaluation, within 5 minutes, by filling out your details here. You can then complete a full evaluation online without visiting our branches.

Lending amount


We lend up to 70% of the rateable or property value when you refinance. The loans can be indexed, non-indexed or mixed.

What is the best option for me?


Visit us at one of our branches and our experienced mortgage advisors will help you to make the right decision for you.

If you are refinancing a mortgage from another bank, then please bring all the details with you.