To apply for a loan

All the necessary documentation must accompany a loan application in order for it to be processed. If any documents are missing the processing of the loan will be delayed.

  • The minimum loan granted is ISK 1,000,000, the maximum amount is ISK 50,000,000.
  • Loans must be secured by a mortgage on real estate (a house or apartment) and may not exceed 70% of the value of the property (the loan-to-value ratio or LTV).
  • The LTV is based on the purchase price of the property when the loan is made for its purchase or on the official assessment value. An ad hoc assessment cannot serve as a basis.
  • If a person other than a spouse, i.e. who is married to or in a registered partnership with the borrower, is the borrower's co-owner of the property a mortgage cannot be granted for the property.

Processing of an application cannot begin until all documentation supporting the application has been delivered. It is important to make sure that all necessary documentation is attached.

Points to consider

  • For what purpose do I plan to use the loan, and what income will I use to make the payments?
  • Will I be able to manage the payments if they increase more than my wages?
  • What effect will rising prices have on payments towards my loan, the loan principal and my wages?
  • Which would suit me better, a fixed or floating interest rate?
  • Which would suit me better, an inflation-indexed or non-indexed loan?
  • Which would suit me better, to make equal regular payments or to pay equal instalments?