Financial and Mortgage Portfolio Overview
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Highlights
Property valuations are regularly updated
LTVs are generally determined based on the official real estate value
Property valuations are updated at least once a year by
an external surveyor
Íslandsbanki uses an official real estate value which is
published once a year. In addition, the Bank uses an
independent third party valuation model as well in some
cases
The product type depends on the LTV ratio in terms of
the borrower's financing needs
Base loan (A) is up to 70% of official real estate value
Additional loan (B) is up to 80% of property price
In terms of refinancing, the maximum loan is 70% of
official real estate value (A - Base loan)
Example
An individual buys an apartment for the first time. The price is ISK
50.000.000 and the official real estate value of the property is ISK
40.000.000. The customer is looking for a maximum loan to buy his
first apartment and has a down payment of ISK 7,000,000.
The funding in terms of product types and LTV would be:
Down payment (savings): ISK 7,000,000
Base loan (A): ISK 28,000,000 (70% of the official real estate
value, ISK 40,000,000)
Additional loan (B): ISK 12,000,000 (from 70% up to 80% of
the property price)
First-time buyer loan (C): ISK 3,000,000 (in addition to the
traditional 80% housing financing of the purchase price)
Total loan amount: ISK 43,000,000
LTV: 86%
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August-September 2022View entire presentation