Interest rates are fixed for three years (36 months) and are based on the interest rates available at any given time.

After the fixed-rate period ends, the interest rate will become variable and will consist of a variable base rate plus a fixed interest-rate margin. The variable base rate is the Central Bank of Iceland’s policy rate/main rate at any given time. However, the interest rate can never be lower than the specified interest-rate floor stated in the bond.

What's the difference between equal instalments and equal (amortised) payments?

Equal payments

If a loan is amortised, the payments you make will be equal throughout the repayment period.  On the other hand, the relative amount of the instalment on the principal and the interest paid will change.  The principal decreases more slowly than if equal instalments are paid.

Equal instalments

For loans with equal instalments, the amount paid towards the principal in each payment is the same. The debt service is therefore greatest at the beginning, but decreases as the loan term progresses.