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Are you purchasing your first property ?

Did you know that your personal pension savings can help you finance your first apartment - tax-free!

LIV Lifeyrissjodur Verzlunarmanna Myndabanki 7 0223 LIV Lifeyrissjodur Verzlunarmanna Myndabanki 7 0223

Make the home purchase easier

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.

Keep in mind:

  • You can pay off the loan or lower the monthly payments.
  • This applies to the purchase of a first apartment or if you have not owned a residential property for five years.
  • A personal pension savings agreement must be in place.
  • You need to own at least 30% of the property.
  • You can use a maximum of ISK 500.000 per year for 10 consecutive years.

A good option but not for everyone

The idea behind personal pension savings is to reduce the drop in income that most people experience when taking a pension. If you use personal pension savings for a loan, the personal pension savings you have for payment will decrease after the age of 60. On the other hand, tax-free loan repayments increase your equity in the house faster, which lowers repayments in later years. It is important to continue to save regularly to provide for life after work.

It should be noted that personal pension savings are not enforceable, which means, for example, that they cannot be accessed in the event of bankruptcy.


Personal pension savings are an extremely advantageous savings option

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. 

Select application


Calculate Your Savings

The calculation is based on the input you provide and is for reference only. 

Please bear in mind that we assume a 5% return on investment and that savings will continue to 67 years of age even if you can withdraw earlier. 

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Your contribution

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of which return

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Monthly for 10 yr.

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