10.03.2026

New range of mort­gages from Arion Bank

Arion Bank is once again offering non indexed mortgages with variable interest rates. Customers now have three main options when taking out a new mortgage:

Non indexed mortgages with variable interest rates – loan term up to 40 years
Customers may take out a mortgage with non indexed variable interest rates.
The loan term may be up to 40 years. Mortgages with variable interest rates do not carry a prepayment fee.

Non indexed mortgages with fixed interest rates for three years – loan term up to 40 years
Customers may take out a mortgage with non indexed interest rates fixed for three years. The loan term may be up to 40 years. When the fixed rate period ends, the loan switches to the Bank’s variable rate available at that time. A prepayment fee applies during the fixed rate period, but once the loan shifts to a variable rate, no prepayment fee applies.

Indexed mortgage with fixed interest rates for three years at a time – loan term up to 30 years
Customers may take out a mortgage with indexed fixed interest rates for three year periods. The loan term may be up to 30 years. At the end of each three year period, the Bank may review and refix the interest rate for the next three years. During the last 90 days of each fixed rate period, the loan carries no prepayment fee.

Learn about the fixed payment option

Arion Bank also offers the fixed payment option (Icelandic: Greiðslufesta) for customers who choose non indexed loans but wish to reduce their monthly payments.

With the fixed payment option, a fixed monthly payment, lower than the contractual instalment, is paid for twelve months. The difference is added to the principal, increasing the loan amount. Customers may choose to base the fixed monthly payment on an interest rate that is 1%, 2%, 3% or 4% lower than the loan’s current rate.

You can read more about fixed payment option here .

More information

Further information on Arion Bank mortgages can be found here.

Share article:

facebookxmaillinkedin

More news

News overview
02 October 2026

We are not proceeding with the announced fee increases and will seek to keep increases below 2.5%

On 23 July, we announced increases to various items in Arion Bank’s list of fees and charges that were due to take effect two months later, on 23 September. These related to fees that had not been increased for many years, including services for which the Bank relies on external providers, such as distribution companies that had raised their charges by more than the Bank had raised its own fees. These announced changes to fees and charges have not been implemented.

Read more
01 October 2026

Stefnir at 30: growth, innovation and greater access to investing for all

Stefnir hf, a subsidiary of Arion Bank hf, is celebrating its 30th anniversary this year. Since it was established in 1996, Stefnir has grown into one of Iceland’s most successful fund management companies. The company currently employs twenty people and has more than ISK 390 billion in assets under active management.

Read more
30 September 2026

Arion Bank’s new economic forecast: A long winter, a slow thaw

Arion Bank’s new economic forecast assumes that winter will be long for the Icelandic economy and that the spring thaw will be late in coming. There is no end in sight to the war in the Middle East, with repercussions for energy markets, inflation and growth both in Iceland and abroad. Hopes of swift interest rate cuts have faded, and households and businesses have become more pessimistic. These challenges are reflected in a lower growth forecast, higher interest rates and higher inflation. 

Read more