Change in loan period

Shortening of loan period

If you wish to pay your housing loan faster, you can either make extra instalments into the principal amount each month, or shorten the loan period. With a shorter loan period your monthly instalments will increase and the asset formation will be faster.

Application

You apply by emailing the following information to hms@hms.is :

• Name and Icelandic

  id.no

  . (kennitala).

• Which loan you wish to shorten (if you have more than one).

• What you wish the loan term to be shortened to, or what you want your monthly instalment to be.

To determine a shorter loan period based on monthly instalments, you can insert different criteria into our HMS Loan calculator.

A HMS loan advisor will be in touch shortly by email, confirming receipt of the application and requesting further information if needed. If your monthly payment burden increases by 20% or more, you will need to undergo a credit assessment.

Change of loan period approved

• When the loan documents with the new loan terms are ready, you will receive a notification by email.

• If there is a loan on the property on a rear mortgage (from another credit institution), that credit institution has to endorse its approval of the change in terms.

• You come to our office in Borgartún 21, Reykjavík, sign the documents and then take them to the District Commissioner’s office (Sýslumaður) for registration (þinglýsing).

• When the loan document have been registered you pick them up at the District Commissioner’s office (Sýslumaður), bring them back to HMS and we process the change of terms.

• The cost of the change of terms is added to the next instalment of the loan.

Cost:

• Change of terms 3.250 ISK

• Registration fee at the District Commissioner’s office (Sýslumaður) ISK 2.700

Extension of loan period

Extending the loan term reduces monthly instalments and asset formation becomes slower. If you wish to extend the loan period, you can look at available solutions for payment difficulties.