Mortgages
Arion Bank offers mortgages with terms of up to 40 years, lending up to 80% of the market value of the property.
The loan is split into two parts. The first part can be up to 70% of the real estate valuation. The second part can bridge the gap up to 80% of the market value.
Arion Bank offers both inflation-indexed and non-indexed mortgages. It is also possible to have a mixture of these two types of loan.
Non-indexed loans
Ideal for people who want to pay off their loans more quickly and avoid the cost of inflation accumulating on the principal. Repayments are generally higher to begin with than inflation-indexed loans.
You can choose between variable or fixed interest rates. Fixed interest is for a term of three years and after that the loans bear variable interest for inflation-indexed or non-indexed mortgages as per the Bank's interest rate table.
Mixed loans
Repayments on inflation-indexed loans are generally lower during the first part of the loan period, unlike non-indexed loans. By splitting the loan into inflation-indexed and non-indexed, the repayments become more even over the loan period. Mixed mortgages have terms of up to 40 years.
Interest on the non-indexed part of the loan can be variable or fixed for three years. Fixed interest is for a term of three years and after that you pay variable interest for inflation-indexed or non-indexed mortgages as per the Bank's interest rate table.
Inflation-indexed loans
Inflation-indexed loans have lower repayments but it takes longer to repay the loan in full. Inflation is added to the principal and spread out over the loan period.
You can choose two types of inflation-indexed loans: loans with interest for three years or loans with variable interest.
Green mortgages
Environmentally certified housing - no loan origination fees
Our customers pay zero loan origination fees on mortgages when investing in residential property which has been environmentally certified.
Confirmation must be provided that the property has been certified by one of the following:
- Swan Ecolabel
- BREEAM - Very Good
- LEED Gold