Refinancing

Do you want to pay your mortgage faster or lower your monthly payments? Refinancing can be the sensible option when your circumstances change.

Next step

It takes just a few minutes to apply (in Icelandic)

Why should I refinance?


Circumstances change and refinacing can often be the simplest way to make your money work harder. Perhaps interest rates have dropped since you took out your mortgage or you need to lower your monthly payments.

  • We lend up to 70% of the rateable or property value when you refinance.
  • The real estate valuation needs to be done by a certified real estate agent.
  • If the property value is higher than the rateable value, then the rateable value will be used.
  • The loans can be indexed, non-indexed or hybrid.
  • You should check the Terms and Conditions of the mortgage you wish to replace to see if you you will be required to pay a prepayment penalty.
  • The cost of refinancing a current Íslandsbanki mortgage is ISK 59,000
  • Other costs are in accordance with the price list at any given time.

How does refinancing work?

  • Credit score eval­u­ation

    Credit score evaluation

    Your credit score shows how much you can borrow and how capable you are of paying off your loan. Your credit score is based on your income, regular expenses and current debts. It takes just a few minutes to apply (in Icelandic)

  • Loan

    Explore your options

    We offer both indexed, non-indexed and hybrid loans. You can use the mortgage calculator to explore your options.

  • application

    Submit application

    Once you have decided on a loan composition, you can submit an application electronically.

  • Reliability

    Answer our reliability survey

    All applicants must fill out a reliability survey before moving forward with their loan application.

  • Approved

    Application is approved

    The loan will be approved as soon as all the loan requirements have been fulfilled.

  • Signature

    Signing the documents

    We will contact you when the documents are ready for signature.

  • Registration

    Documents sent to the District Commissioner

    The loan is registered with the District Commissioner.

  • Loan becomes available

    The loan becomes available once registration with the District Commissioner has been completed and in accordance with the loan's Terms and Conditions.

Frequently asked questions