Planning to build?
We offer comprehensive financing for your building project.
We offer comprehensive financing for your building project.
We can help finance the entire building process, from buying the plot to completing the property. Initially, we provide financing as a short-term, non-index-linked loan. Once the property reaches construction stage 2 (weather-tight), you can apply for a mortgage. The property serves as security for the loan under a mortgage deed.
Once the property is complete, you can borrow up to 80% of the building cost or the property's market value, whichever is lower. We only lend against a first-ranking mortgage.
Additional requirements apply if the loan amount exceeds ISK 70 million.
A good place to start is by reviewing your finances and completing an affordability assessment. To learn more, email us at ibudalan@arionbanki.is or book an appointment with an advisor.
You need to provide a cost estimate and building plan
You must have at least 30% equity in the estimated building cost when the project starts
You can borrow up to 70% of the value of the work completed at each construction stage
The property under construction must have appropriate fire and construction insurance
The loan is provided as an overdraft for up to 12 months and can be extended if needed
The loan has a variable, non-index-linked bridging loan interest rate and is provided through a dedicated account
You can repay the loan at any time without charge
Provides comprehensive cover if you are building a home and have appointed a construction manager or qualified contractor to manage the work.
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.