Non-indexed housing loans with fixed rates

Landsbankinn now offers non-indexed housing loans with fixed rates for a term of 36 or 60 months. Before the final due date for payment of the fixed rate period, the borrower chooses whether to again opt for fixed rates at the available terms or to change to floating non-indexed rates for the remainder of the loan term.

Term of loan

  • The loan has a 40-year term.
  • A supplementary loan is an amortised loan for a maximum period of 15 years.

Amount of loan and LTV

  • The maximum loan amount is up to 70% of the property's market value or valuation and a supplementary loan can be taken out to finance up to 85%.
  • The lending percentage cannot exceed the combined fire insurance assessment value and plot value of residential housing.
  • First mortgage rights are required and the real estate must be owned by the borrower.
  • Minimum housing loan is ISK 1 million.

Interest

Instalments

  • These are variously amortised or equal payment on principal loans.
  • Repayment of supplementary loans is in the form of monthly equal instalments on the principal.
  • Instalments are made monthly on the first day of the month.

Fees

  • A stamp duty of 1.5% goes to the national treasury (no stamp duty is charged on the first real estate purchased).
  • Until 31 December 2011 no stamp duty is charged on refinancing of housing loans. No stamp duty is charged on the tranche of the new loan comparable to the recalculated value of the older loan, plus default.
  • Fee for registration accrues to the national treasury.
  • Borrowing charge of 1%.
  • No borrowing charge applies to refinancing of Landsbankinn loans, since the borrower has already paid the fee.
  • Within 30 days of redetermining interest, the customer can make additional down payments or excess payment without a pre-payment charge applying. During the fixed rate period, a prepayment and excess payment fee of 2% applies.
  • Other fees as per the bank's current tariff.

More favourable terms for first-time real estate purchases

  • Borrowers purchasing their first real estate and who service their debt promptly get yearly refunds from the bank at the end of each year for a period of three years.
  • The refund amounts to 0.25 percentage points of paid interest on the loan and is payable to the borrower's account for debit.

Are you a member of Varðan?

  • Members of Varðan are charged a lower borrowing charge, or 0.5%.
  • They are also rewarded ISK 5,000 in ExtraChange if they collect ExtraChange
  • Other information
  • The borrower must pass credit assessment.

Loans