Should you refinance your mortgage?
Your ability to make repayments may have improved, which could mean you can shorten the loan term and pay it off sooner.
Your ability to make repayments may also have decreased. In that case, extending the loan term could be a sensible option, helping to reduce your monthly repayments.
You can refinance your mortgage up to 80% of the property value if you are refinancing the same amount that is already secured against the property.
If you already have a mortgage with Arion Bank, you can also refinance the same loan amount, up to 90% of the property value.
The total loan amount cannot exceed the property's combined fire insurance value and land value. In certain postcode areas, the limit is based on the fire insurance value plus twice the land value.
You can apply to refinance your mortgage up to 80% of the property's value. If your mortgage is with Arion Bank, you can apply to refinance up to 90% of the property's value.
You can apply jointly if you are married or in a registered cohabiting relationship. Under the Central Bank of Iceland's rules, your debt service-to-income ratio, which compares your mortgage repayments with your income, must not exceed 35%.
If the loan amount exceeds 70 million ISK, the bank reserves the right to impose additional requirements for the loan.
You can apply for refinancing and sign the supporting documents online. Please note that you must sign the final loan documents at one of our branches.
Please note that you may need to pay an early repayment fee on your existing loan if you refinance.
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.
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.
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.
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.