Affordability assessment
An affordability assessment is the first step when applying for a mortgage, as it is important to understand your financial capacity before choosing a property.
By signing in with electronic ID, you authorise us to retrieve information about your income, assets, and debts.
The cost of credit assessment is ISK 7,000 for an individual and ISK 12,500 for couples. The fee must be paid even if the loan is not granted.
Spouses and individuals who confirm that they share a household, living expenses, and intend to purchase property together may be jointly credit assessed.
According to the rules from the Central Bank of Iceland, the debt service ratio, which is the proportion of income going toward mortgage payments, must not exceed 35% or 40% for first-time homebuyers.
The payment assessment is valid for 6 months. You can open it at any time while it is valid.
The assessment closes as soon as the loan application is approved or rejected.
If a credit assessment is performed for loans from other than Arion Bank, Frjálsi Pension Fund, or EFÍA, then the credit assessment must be signed and paid for according to the bank's price list.
When the results of the payment assessment are available, you should have a clear picture of how large a loan you can take. However, we point out that the payment assessment does not take into account the operating costs of the property nor the Central Bank's rules on payment burden.
Therefore, it may be good not to borrow the maximum amount according to the assessment, but to leave some room for other expenses.
