Equity loans

Equity loans are granted for the purchase of new affordable properties that have been approved by HMS. In exceptional cases, older properties outside the capital area are approved, if they have been totally renovated (as new).

On property websites like fasteignir.is and mbl.is you can search for apartments that are eligible for equity loans (hlutdeildarlán).

Size and price limits

The maximum price of an apartment is based on the number of square metres and rooms. Depending on the region, the size and price limits are as follows:

The capital region (Garðabær, Hafnarfjörður, Kópavogur, Mosfellsbær, Reykjavík og Seltjarnarnes)

Growing areas outside the capital area (Akranes, Akureyri, Grindavík, Hveragerði, Hörgársveit, Reykjanesbær, Suðurnesjabær, Árborg, Vogar og Ölfus)

Rural areas outside growing areas

Number of rooms with regard to family size

The apartment can have one bedroom beyond the family's needs. Family size is based on the number of children or young people under the age of 20, living in the household, in addition to the applicant.

If a spare room is needed for assistants due to disability, this is taken into account when assessing family size.

The apartment is not intended as a rental

Generally, you are not permitted to rent out an apartment that was purchased with an equity loan.

When you have lived in the apartment for two years, you can be permitted to rent it out temporarily if you need to stay away from home for one of the following reasons:

• work

• study

• illness

• disability, your own, your spouse’s or your child’s

• stay in a halfway house

• other special circumstances which can be justified