Equity loans
Apply for equity loan
HMS has opened applications for shared equity loans for the month of May.
Applications can be submitted until 12:00 (noon) on Friday, May 15.
Equity loans have now been firmly established as part of the government’s housing measures, with monthly allocations guaranteed throughout 2026.
These loans are granted for the purchase of newly built homes and are intended for first-time buyers, as well as individuals who have not owned property in the past five years and who are below specified income thresholds. The aim of the loans is to support first-time buyers in entering the housing market by bridging the financing gap when purchasing a home.
At least ISK 458 million available for allocation in May
The application period runs from 12:00 (noon) on Monday, May 4, until 12:00 (noon) on Friday, May 15. A minimum of ISK 458 million will be allocated during this period. If the available funding is insufficient to cover all eligible applications, a random draw will be conducted among applicants who meet the eligibility criteria, in accordance with the established priority rules.
Priority is given to applications where a signed purchase agreement is in place. Additionally, it is stipulated that at least 20% of shared equity loans each year will be allocated to purchases of properties outside the capital area. Loan approvals will not be issued until all applications have been reviewed.
Applicants may apply for a shared equity loan either after signing a purchase agreement or based on an estimated purchase price. Applications with an approved purchase agreement will be given priority in the allocation process.
With an accepted purchase offer
When you have signed a purchase offer, you undergo a credit assessment and apply for a basic loan to the credit institution of your choice and an equity loan to HMS. When applying to HMS you can use a credit assessment from another credit institution.
Supporting documents:
Confirmation of 5% personal funds with a bank statement showing the status of all your accounts.
A signed purchase offer.
Last tax report’s tax assessment results.
Credit assessment provided by the credit institution that will provide the base loan.
If a base loan is in place, confirmation of its amount and terms of credit, is required.
When you have submitted your application, you will receive confirmation of receipt by email. HMS loan advisors will be in contact if further information are needed.
Application accepted with a purchase offer
When a loan is approved, the conditional loan promise is sent to your HMS My Pages. You forward it to your real estate agent who will provide HMS with information on the purchase agreement, copies of the documents for the base loan and certification of the building commissioner’s safety inspection. Equity loans are disbursed when these documents are ready and have been registered (þinglýsing) at the District Commissioner’s office, (Sýslumaður).
Without a purchase offer
You can apply for an equity loan for the estimated purchase price to get a conditional loan promise. It is a good idea to check the size and price limits to see what amount you intend to apply for. After submitting an application you will undergo a credit assessment with HMS.
Supporting documents:
Confirmation of 5% personal funds with a bank statement showing the status of all your accounts.
Last tax report’s tax assessment results.
When you have submitted your application, you will receive confirmation of receipt by email. HMS loan advisors will be in contact if further information are needed.
Application accepted without a purchase offer
You find a property that is eligible for an equity loan (hlutdeildarlán). You can do this by going to fasteignir.is or some other property website.
You make an offer on a property that meets the conditions of equity loans.
When you have signed a purchase offer, you forward it along with information on your base loan (if available), by email to
If the property meets the conditions for equity loans, you will receive a conditional loan promise that is valid for 3 months. It will be sent to your HMS My pages.
You forward it to your real estate agent who will provide HMS with information on the purchase agreement, copies of the documents for the base loan and certification of the building commissioner’s safety inspection. Equity loans are disbursed when these documents are ready and have been registered (þinglýsing) at the District Commissioner’s office (Sýslumaður).
Loan denied
If a loan application is denied, you will receive an email with our formal ruling and there you can see our reasons for refusal. If some documents are missing or if your situation has changed in some way, you can apply for a revision of your application and provide us with new information.
HMS rulings can be appealed to the Welfare Appeals Committee
Personal funds
Personal funds is the amount you have when debts (for example, short-term loans, overdrafts or car loans) have been deducted from your assets (for example, money or a car). Student loans do not count as debts.
You can use personal pension savings that you have accumulated maximum of ISK 500.000 for each year in the period you choose for personal funds. For more information, see the tax office website.
Cost of borrowing:
Loan charge is 64.500 ISK .
Credit rating for an individual is 8.400 ISK and 16.700 ISK for couples or cohabitants.
Registration fee at the District Commissioner’s office (Sýslumaður) is 3.800 ISK.
Monthly allocations
Every year the Icelandic government allocates a certain amount to equity loans. Each month is a separate allocation period and if the applications received exceed the allocated monthly amount, applications will be drawn randomly. However, applicants with accepted purchase offers have priority when allocating. If an application is denied because of this, you can apply again next month.
Processing time
Applications are usually processed within one week of their receipt. When an application is processed or if documentation is missing, you will receive notification by email from a HMS loan advisor.
Service provider
Housing, construction and planning authority