Financial and Mortgage Portfolio Overview
Conservative lending criteria
Applicants must meet a stringent set of requirements
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Individuals intending to buy or refinance a home for own use can apply for a mortgage with
Íslandsbanki
Borrowers can renew their interest rates due to lower LTVs through refinancing, which is common in
Iceland
Íslandsbanki will have first lien position or equal lien on the property in accordance with the loan rules
Each application is evaluated with regards to the credit rating of the applicant, the credit assessment
and the value of the property. Special terms apply to loans that exceed ISK 75m in terms of LTVs and
the person's ability to pay
Each applicant must successfully complete a credit evaluation, before a loan application can be
accepted
The loan products are divided into base loans (A) and additional loans (B) based on the LTV:
Base loan (A): 70% of official real estate value (i. fasteignamat) - (base loans are in the cover
pool)
Additional loan (B): Up to 80% of property purchase price
Íslandsbanki offers a special loan up to a maximum of ISK 3m for those who are buying a house for
the first time. The loan is in addition to the traditional 80% of the purchase price, but up to a maximum
of 90%
LTI (Loan-to-income): In general, it is ensured that the mortgage payment burden does not exceed
30% of paid income. First-time buyers have an exemption of up to 35%.
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August-September 2022View entire presentation