Up to 70% LTV mortgage rates or 85% for First-Time Buyers

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.

Additional Conditions:

• Loans are only granted against collateral in residential properties.
• The property must be fully owned by the applicant/borrower.
• If another party, besides the spouse in a marriage or registered partnership with the borrower, has a share in the property, no loan can be granted against that property.

Amounts and maturity

• Minimum Loan Amount: ISK 1,000,000
• Maximum Loan Amount: ISK 95,000,000
• Loan Term: 5 to 40 years
• Twelve instalments are paid each year.

If the total loan amount exceeds ISK 75,000,000, the credit rating must be no lower than B1, and the estimated disposable income after taking the loan must not be less than ISK 180,000. The total amount of encumbered loans, including the new loan, must not exceed the fund's maximum loan limit.

Income Considered for Credit Assessment

• Income is generally based on data from the Icelandic Tax Authority's withholding tax statements for the last 12 months.
• For electronic loan applications, both the tax return and withholding tax statement are included, eliminating the need for separate submission of these documents.
• If the applicant wishes to include other income not listed in the tax records, relevant documents must be submitted to verify those earnings. The fund reserves the right to assess these documents based on its internal guidelines.
• Rental income is not considered for the credit assessment.

No Prepayment Fees

There are no prepayment fees on housing loans, allowing borrowers to repay or make additional payments at any time.

Making Additional Payments

Please include the loan number in the reference/comment field. Use Account No. 515-26-10200. Fund ID: 430269-4459.

Digital Process

To assess repayment capacity and start the application process, applicants must go through an electronic credit assessment. Log in with electronic identification, and the system will guide you. With your consent, the necessary data for processing the application will be retrieved.

Note: A fee is charged for each credit assessment. Borrowers are encouraged to consider the fund’s loan guidelines and the Central Bank of Iceland's payment burden rules. According to these rules, the payment burden ratio for housing loans must not exceed 35% of income or 40% for first-time buyers.

Loan Eligibility

To qualify for a loan, you must meet one of the following conditions by having contributed to a pension or private savings plan:

• For 6 of the last 12 months before the application.
• For at least 36 months prior to the application.
• First-time buyers are eligible after making one contribution.
• Alternatively, be the spouse of a pension fund member who has loan eligibility.

Other Conditions

• Your registered domicile must be in Iceland.
• Loans from the fund must not be in default.
• In the case of married couples or registered partnerships, it is sufficient for one party to meet the loan eligibility requirements.