Loan take-over

If you are buying an apartment that has an ongoing loan from HMS, you have the option to take over the loan. If the terms of that loan are good and the loan is well into the loan term, this could be a favorable option. When taking over a loan, there is no borrowing fee.

In the event of a divorce or a breakup, you can take over the former spouse’s part in a loan. Also, if you are buying into a home that another person already owns, for example a new spouse, you can become co-owner and take over part of the existing housing loan.

Conditions

• If you are taking out a new loan at the same time as taking over another loan, the total loan amount can not exceed ISK 44 million.

• The property may not be leased.

• It is only possible to own one apartment with a HMS loan.

• All older HMS loans can be taken over except loans from Byggingasjóður verkamanna.

• In the event of a divorce or a breakup, equity loans can only be taken over partially.

• The payment burden ratio must complies with the condition of Central Bank of Iceland

Application

Supporting documents:

The application has to include:

• A signed purchase offer and sales statement or a deed (as applicable)

• Confirmation of own funds, for example a bank statement

• Last tax report’s tax assessment results

• In the case of a divorce or a breakup confirmation of division of assets is required

A HMS loan advisor will be in touch shortly by email, confirming receipt of the application and giving you information on credit assessments.

Take over approved

• As soon as the application for take over is approved it is forwarded to documentation.

• When the documents are ready, you can pick them up during our opening hours in Borgartún 21, Reykjavík and take them to the District Commissioner’s office (Sýslumaður) for registration (þinglýsing), (along with the purchase agreement, if applicable).

• When the documents have been registered you pick them up at the District Commissioner’s office (Sýslumaður) and return them to HMS.

Cost:

• Loan take over fee 11.000 ISK

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

• Credit assessment is ISK 8.400 for individuals and ISK 16.400 for couples.

Take over denied

If an application for the take over of a loan is denied, you will receive an email with our formal ruling and there you can see our reasons for the 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.