Total loans are up to 80% of construction cost or 6 million above property valuation.
Base loan is called primary mortgage and a supplementary loan, second mortgage. Additional loans generally have higher interest rates.
Non-indexed loans
Non-indexed loans have higher monthly payments than indexed loans. Non-indexed loans do not increase with inflation, so asset growth is faster.
Fixed interest rates for 3 years at a time
Loan period up to 25 years.
Base loan for up to 70%.
Additional loan for 71–80%.
Additional loan exceeding 80% up to ISK 6 million above the property valuation.
Indexed loans
Indexed loans have lower monthly payments than non-indexed loans. They are linked to inflation so the principal amount can increase initially. This makes the asset growth slower.
Fixed interest rates for 5 years at a time
Loan period up to ****35 years.
Base loan for up to 70%.
Additional loan for 71–80%.
Additional loan exceeding 80% up to ISK 6 million above the property valuation.
Fixed interest rates over the term of the loan
Loan period up to 35 years.
Base loan for up to 80%.
Additional loan exceeding 80% up to ISK 6 million above the property valuation.
Service provider
Housing & Construction Authority