Varied and flexible housing mortgage
At LSR, you can get a housing mortgage if you have paid a premium to LSR sometime in the past 5 years. LSR housing mortgages are available both indexed and non-indexed. You do not have to pay a prepayment fee, neither when you pay a part of your loan off early nor when it is paid off in full.
3
Number of loan types
9%
Non-indexed loan, interests reviewed every 36 months
4,5%
Indexed loan, interests reviewed every 36 months
4,5%
Indexed loan, fixed interests during the loan period
ISK 75,000,000
Maximum amount of loan
ISK 1,000,000
Minimum amount of loan
5 - 40 years
Loan period of indexed loans
3 - 40 years
Loan period of non-indexed loans
What conditions must be met to get a loan?
- Loans are only granted against collateral in residential property in Iceland for personal use where the borrower has or will have a legal domicile.
- Housing mortgage loans can be a maximum of 65% of the registered real estate value or the purchase price of the real estate purchase agreement.
- Housing mortgage loans can however be a maximum of 70% of the registered real estate value or the purchase price of the real estate purchase agreement if LSR is the sole lender.
- The maximum mortgage is also limited by the fact that it can never exceed the sum of the fire insurance value and the registered land value.
- All registered owners/buyers of the relevant property must become borrowers and pass a payment ability evaluation and credit rating assessment, and the Central Bank of Iceland's debt service-to-income ratio.
How do I apply for a loan?
A loan application is filled out on My pages. In the application process you will also have to fill out an electronic payment evaluation that is paid for according to tariff.
For property purchases, you must submit:
- A signed purchase offer/purchase agreement for the property being purchased
- A signed purchase offer/purchase agreement for the property being sold, if appropriate
- Confirmation of funds to be used for the property purchase (if funds from the sale of a property are not to be used)
In the case of a divorce or separation, you must submit
- Division of assets and divorce agreement confirmed by the District Commissioner
- Confirmation of the division of assets and liabilities, signed by both parties
If you meet any of these conditions, you can apply for a property loan at LSR:
- Has paid a premium to LSR sometime in the past 5 calendar years
- Has ever paid a premium to LSR and not paid a premium to another pension fund after payments to LSR ended
- Are a pensioner with LSR and have paid a premium to LSR for at least 10 years in total
- Are a spouse's pension recipient at LSR and your spouse would have been entitled to a loan