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 or five years and after that the loans bear 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 three types of inflation-indexed loans: loans with fixed interest throughout the loan period, loans with fixed interest for five years or loans with variable interest
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 or five years
- Fixed interest is for a term of three or five years and after that you pay variable interest for inflation-indexed or non-indexed mortgages as per the Bank's interest rate table