Mortgages for people with
income in foreign currency

Mortgages or property loans for people with income in foreign currency are designed for customers who wish to take a loan but need to use foreign currency to pass the credit assessment or for people who are resident abroad. The mortgaged property must be in Iceland.

The mortgage is only for individuals who intend to buy, renovate or refinance residential property for their own use.

Type of loan available

Non-indexed loan
with variable interest rates

No pre-payment fee

Non-indexed loan
with fixed interest for 3 years

Maximum 1% pre-payment fee


Credit assessment

The borrower needs to undergo a credit assessment as the debt service burden (regular repayments of the loan) of the mortgage may increase by up to 40%.

Conditions for a loan

  • Loan-to-value may never exceed 70% of the market value of the property when buying and the real estate valuation when refinancing
  • The loan must always be secured with a first lien
  • Loan period: 5-40 years
  • The minimum loan amount is ISK 1,000,000 for each loan
  • If the loan amount is higher than ISK 70,000,000, the monthly disposable income after paying all bills needs to be a minimum of ISK 175,000

For further information please contact

Loan repayments

The loan repayments must be debited from a deposit account denominated in Icelandic krónur. It cannot be repaid in foreign currency.

The customer must arrange to transfer funds into an account in Icelandic krónur to repay the loan.

Important to know

Please note that if the borrower does not intend to live in the property, this will affect the interest on the loan.

It is permitted to grant loans to persons with a foreign domicile but certain countries require further checks.

Loan application

Application for loan in Icelandic krónur linked to foreign currency