Are you entitled to apply for a loan?

You are entitled to a loan if you have paid pension contributions in 6 of the past 12 months prior to your application, or for a total of 36 months prior to your application.

You must also have your domicile registered in Iceland.

Find out if you are entitled to apply for a loan in My Pages or contact the fund.

Up to 70% LTV mortgage rates 

Loans are granted in return for a mortgage on residential property owned by the applicant/borrower. Any type of changes to the mortgaging require the approval of the pension fund.

The outstanding balance on any existing mortgages, plus the pension fund loan applied for, may not exceed 70% of the value of the collateral as specified in this section when the loan is granted. If the mortgage for a new loan or transfer of collateral for a loan from the fund exceeds 65% of the value of the collateral, the requirement is generally set that any third-party mortgages (other than those of the Pension Fund of Commerce, LV) may not amount to more than 20% of the assessed value of the collateral.

The mortgage percentage shall be calculated based on the selling price in the purchase contract when a loan is granted in connection with a purchase of real estate. In other cases the existing officially assessed value shall serve as the basis. An ad hoc assessment cannot serve as a basis.

Amounts and maturity

• The minimum amount of a fund member's loan is ISK 1,000,000
• The maximum amount of a fund member's loan is ISK 75,000,000
• Loans can have a maturity of from 5 to 40 years.
• Twelve instalments are paid each year.

Fees

You can find the information on fees here.