Ratios and Conditions

Loan-to-Value Ratio 

• Up to 70% loan to value ratio of the property´s value, based on the lower of the appraised value or the purchase price.

Conditions for Loan Limits

• If loans from other credit institutions exceed 20% of the mortgage limits, the fund’s maximum mortgage is reduced to 65%.
• If the calculated mortgage debt, including the fund's additional loan, exceeds the fund's maximum loan limit, a special assessment will be conducted to evaluate the application based on the fund's interests.

Additional Requirements

• Loans are only provided in exchange for a lien on residential housing.
• The property must be fully owned by the applicant/borrower.
• If anyone other than the borrower’s spouse or registered cohabitant owns the property, it cannot be used as collateral for the loan.

Loan Amount and Period

• Minimum Loan Amount: ISK 1,000,000
• Maximum Loan Amount: ISK 95,000,000
• Loan Terms are from 5 to 25 years for indexed loans and 5 to 40 years for indexed loans for first-time buyers. 

Income for Payment Ability Evaluation

Standard Basis

• Income data is taken from the withholding tax statement issued by the Directorate of Internal Revenue for the past 12 months.
• Electronic applications automatically include the tax return and withholding tax statement, eliminating the need for separate submissions.

Additional Income

• Applicants may submit documents to account for other income not listed in the withholding tax register.
• The fund reserves the right to review and evaluate such data according to internal rules.

Exclusions

• Rental income is not considered in the payment ability evaluation.

No Prepayment Fee

• Loans can be paid off or additional payments made at any time without incurring fees.

Additional Payment Towards a Loan

• To make a payment toward a loan, you need to log in to My Pages using electronic ID, go to the loan status section, and select “make a payment toward the loan.” 
• A payment toward a loan must come from an account owned by the borrower, unless it is a full repayment due to refinancing or a property purchase. 

Electronic Process

• Applicants must complete an electronic payment ability evaluation using their electronic ID.
• The system collects all necessary data with informed consent and guides users through the application process. (Only in Icelandic)
• A fee applies for each payment ability evaluation.

Borrowers are encouraged to review the fund’s borrowing criteria and the Central Bank of Iceland's rules on maximum payment burden ratios:

• Payment burden-to-income ratio cannot exceed 35% (or 40% for first-time buyers).

Eligibility Criteria

To qualify for a loan, one of the following conditions must be met:

Having paid pension premiums or into personal pension:

• For at least 6 months out of the last 12 months prior to the application.
• For a minimum of 36 months before the application.
• First-time buyers are eligible after a single contribution in the last 12 months.

Log in to My Pages with electronic identification to confirm your loan eligibility.  

Additional Requirements: 

• Legal domicile must be registered in Iceland.
• Borrowers must not have existing arrears with the fund.
• For couples (spouses or registered cohabitants), it suffices if one partner meets the loan entitlement conditions.