Mortgage payment on hold
It can be useful in certain circumstances to be able to apply for a mortgage payment on hold.
It can be useful in certain circumstances to be able to apply for a mortgage payment on hold.
The mortgage loan must be in good standing
The mortgage loan must not be frozen
The mortgage loan must not have received a payment deferral during the year
Applications must be submitted 2 days before the end of the month and signed before the 1st day of the following month for the application to take effect on the next due date
The loan-to-value ratio must not exceed 70% at the start of the deferral period
Payment deferral applies exclusively to Arion Bank mortgage loans
You can apply for a payment holiday on your loan once per calendar year; however, at least 9 months must pass between applications.
Please note that interest and indexation continue to accrue during the payment holiday and are added to the principal instead of being paid. This will result in higher installments when payments resume, as the loan term is not extended.
A processing fee of ISK 9,995 is charged for each loan and is added to the next instalment. When processing changes to the loan terms, a land register certificate (veðbókarvottorð) for the property must be obtained.
The certificate is requested electronically from the District Commissioner, and the cost is included in the processing fee.
You must apply no later than two days before the end of the month in which you wish to begin the payment holiday. Documents will be sent to the applicant for electronic signature, and they must be signed electronically before the 1st day of the following month.
The application applies to all home loans held by the applicant, and by signing, the applicant confirms which loans are to be covered by the payment holiday.
We encourage you to contact us at arionbanki@arionbanki.is or via online chat if you have any questions.