Loan for what is missing
Additional housing loans are suitable for those who need extra financing to purchase a property. They are often used in conjunction with loans from pension funds or other lending institutions and are secured by a second lien.
Before getting started, it’s a good idea to assess your situation by going through a credit assessment. If you would like further information, you may contact us at ibudalan@arionbanki.is or schedule an appointment with an advisor.
The loan can be with non-indexed fixed interest rates for 3 years or non-indexed variable interest rates for the entire loan period
The loan-to-value ratio can be up to 80% of the purchase price, or 85% if you are buying your first home
Loan term can range from 5 to 25 years
According to Central Bank regulations, the debt service burden cannot exceed 35% of 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.