Make your first home purchase easier by using your accumulated private pension savings as a down payment. Additionally, you can apply for a loan from the fund to cover up to 85% of the purchase price.
Contribute 2–4% of your salary to a private pension savings account, and your employer will add 2%. You can use this amount for your first home purchase, with a maximum allocation of ISK 500,000 per year for up to 10 years.
Opt for a private pension savings account free from unnecessary fees, commissions, or restrictions.
If you're not reaching the maximum contribution limit, you can add a specified portion of your mandatory contributions to the private savings account through My Pages.
All those who have personal pension savings and are buying or building a residential property can use accumulated personal pension savings to pay for their first home purchase up to a certain level. It is also possible to use personal pension savings to pay down a loan and/or lower the monthly payments.
| Eignasafn | Sveiflur | Nafnávöxtun (%) | ||||||
|---|---|---|---|---|---|---|---|---|
| 1 ár | 3 ár | 5 ár | Stofnár | Opin | ||||
| Verðbréfaleið | 12.6% | 6% | 9.8% | 1999 | No | |||
| Ævileið III | 7.3% | 4.7% | 4.3% | 2017 | Yes | |||
| Ævileið II | 9.9% | 3.6% | 6.5% | 2017 | Yes | |||
| Ævileið I | 12.3% | 3.9% | 8.4% | 2017 | Yes | |||
Nafnávöxtun tímabila, m.v. gengi 30.11.2024
First-time buyers are eligible for loans from the fund after making a single contribution to the fund or their private pension savings. You can apply for up to an 85% loan, comprising a base loan of 70% and an additional loan of 15%, arranged in continuous lien priority from the first lien.
Base Loan
Additional Loan
Please be advised that according to guidelines issued by the Central Bank of Iceland, the ratio of housing loan payments to income must not exceed 40% for first-time buyers.
Apply for a loan covering up to 85% of the property value:
Employees and self-employed individuals can pay up to 4% of their gross wages into personal pension savings. Those who contribute at least 2% and up to 4% of their savings in this manner receive a 2% contribution from their employer. Don´t miss out and apply today.
To be elegabable for a loan, you must meet one of the following conditions by having contributed to a pension or private savings plan:
Log in to My Pages with electronic identification to confirm your loan eligibility.
The maximum loan amount for an individual, couple, or cohabitant is ISK 95,000,000.
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.
The minimum amount is ISK 1,000,000.
The maximum loan amount is 70% of the property valuation or the purchase price if it involves a real estate purchase. The appraisal value is not considered.
If the loan-to-value ratio from other lending institutions exceeds 20% of the available collateral, the maximum mortgage amount is 65% of the property valuation or the purchase price in case of a real estate purchase.
If the current recalculated mortgage debts, including the additional loan from the fund, exceed the maximum loan amount from the fund, the evaluation is based on the fund's best interests, despite collateral ratio rules.
The loan term can range from 5 years to 40 years. The maximum loan term for an additional loan for first-time buyers is 25 years.
There are 12 payment due dates per year.
First-time buyers can apply for an additional loan if it maintains the same lien priority as the first loan, with a maximum loan-to-value ratio of 85%. The additional loan is non-indexed with a fixed interest rate for 3 years, and a 0.75% interest rate premium is added. The maximum term for the additional loan is 25 years.
First-time buyers are eligible for loans from the fund if they have made at least one contribution to the fund or a private pension savings plan.
There are no prepayment fees on the fund’s housing loans, meaning borrowers can repay the loans or make additional payments at any time.
According to regulations from the Central Bank of Iceland, the payment-to-income ratio (the proportion of income spent on housing loan payments) must not exceed 40% for first-time buyers.
The Central Bank has issued rules for the maximum mortgage loan debt in proportion to the borrower's income.
The maximum monthly payment for all real estate loans of the borrower may not exceed 35% of the consumer's monthly disposable income when a real estate loan is granted. However, the maximum may be 40% in the case of a first real estate purchase.
Individuals who purchase a residential property for the first time are authorised to use to some extent their personal pension savings towards it without tax liability (tax free).
This authorisation applies to individuals who have not previously owned a residential property. The applicant has to purchase a property either him/herself or jointly with another individual, although the individual’s share of the property has to be at least 30%.
The application must be received by the Iceland Revenue and Customs office within twelve months from the signing of the purchase agreement.
Find out more at the website of the Iceland Revenue and Customs (Skatturinn)
