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General information

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.


You can find the information on fees here.

Maximum monthly mortgage payments

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.

Frequently asked questions

For what purpose can I use the loan?

No conditions are set as to what the loan can be used for, except in the case of conditional authorisations for a mortgage.

Can I pay off the loan or make payments toward the principal?

Yes. Loans can be paid off at any time without any prepayment charge. Please include the number of the loan in the explanation/payment reference.

Payments can be deposited in account 0515-26-010200, ID no. 430269-4459.

Does my spouse/partner have to be a co-borrower?

Yes, in those cases where he/she owns a share together with the borrower in the property to be mortgaged or the entire property. Your spouse/partner must also be co-borrower if he/she is included in the credit assessment with you.

Can I take out a loan on a property which is partly owned by someone else?

If a person other than a spouse or life partner, i.e. who is married to or in a registered partnership with the borrower, is the borrower's co-owner of the property a mortgage cannot be granted for that property.

Possible consequences if obligations under a loan contract are not met

If a debtor cannot pay the loan instalments, interest or indexation on the due date, the entire loan falls due without prior notice. The debtor will have to pay penalty interest from the due date, at the rate determined by the Central Bank of Iceland, as provided for in the first paragraph of Art. 6 of Act No. 38/2001, if he/she fails to make a payment on time, in addition to all the costs resulting from the default.

The final outcome could be that your home may have to be sold at a forced auction if you fail to make your payments.