General Information

Conditions for mortgage loans

Contribution payments must have been paid to the fund.

The borrower must present a summary of his/her liabilities at other credit institutions.

Loans are granted against a mortgage in a property which is owned by the fund member/borrower or his/her spouse.  Existing mortgages, in addition to the fund´s loan, may not exceed 65% of the property´s assessed market value, as determined by a certified real estate agent or other specialist designated by the fund.  The borrower pays the assessment cost.

The borrower can choose between a loan with fixed interest rate or a loan with variable interest rate.

  • Fixed interest rate is 3,60% and the borrower can choose between a loan with fixed amortizations or fixed payments (annuity).
  • Variable interest rate is now 3.23% (May) and is 0.75% higher than the last months average yield for the most recent category of 30-year Housing Financing Fund bonds (HFF150434) in the transaction system of the Iceland Stock Exchange.

Loans are indexed according to the Consumer Price Index.

Loan term is from 5 to 40 years, and  a choice between 30 or 90 days payments.

There is a loan fee of 1% and the borrower must pay a registration fee (ISK 2,000) and stamp duty (Isk 2,000 of the loan) to the Sheriffs Office (magistrates)/District Commissioner´s Office (sýslumaður)