Additional financing when you need it most
Additional mortgage financing suits you if you need extra funding to buy a property. It is often used alongside loans from pension funds or other lenders and is secured by a second-ranking mortgage on the property.
First, complete an affordability assessment to understand your borrowing capacity better. If you would like more information, please get in touch with us at ibudalan@arionbanki.is or book an appointment with one of our advisors.
Available only with non-indexed interest rates, see the loan calculator or interest rate table for more details
You can borrow up to 80% of the purchase price, or up to 85% if you are buying your first home
The loan term can be between 5 and 25 years
Under the Central Bank of Iceland's rules, your debt service payments must not exceed 35% of your income, or 40% if you are a first-time buyer.
Choosing the right mortgage is a major decision that affects your household finances for many years. Therefore, it's important to understand how the choice of loan term and type can change both the payment burden and total cost. Whether the loan is indexed or non-indexed, and how long the loan term is, can have significant effects on payment burden and equity building.
After checking your payment capacity and securing a down payment, it's time to find your dream property. This process can take varying amounts of time, but it's important to choose carefully and find a property that has most of the features you're looking for.
Most people have very clear ideas about what kind of apartment they're looking for and what requirements it needs to meet, but it's good to keep in mind that you may not find an apartment that fulfills all your wishes. When buying your first property, you often need to prioritize features and choose the property that checks the most boxes if you can't find one at the right price that meets all your criteria.
When taking out a new loan, the repayment period can be crucial. The maximum loan term varies, but the longest loans are for real estate purchases, which can extend up to 40 years.
It is difficult to determine whether renting or buying is right for you, and this is mainly guided by your financial situation and financial goals. You should calculate both options thoroughly before making a decision. If you are considering purchasing property, there are several important factors you should familiarize yourself with and be clear about before you begin the process.