The scheme allows individuals to use their private pension savings to reduce the principal of their residential mortgage for up to ten years. In 2026, you can use up to 500,000 ISK per person under the scheme.

To qualify, you must own at least 30% of the property, have your registered legal domicile there and have a loan secured by a mortgage on the property.

Apply Before 1 December to Include Contributions from 1 January 2026

If you want to use private pension savings contributions paid from 1 January 2026, you must apply before 1 December 2026. Applications submitted after this deadline will take effect from the month of application.

Spouses and cohabiting partners must each submit a separate application.

Learn more about the eligibility requirements and how to apply.