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.



  • 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.


  • Fee for registration accrues to the national treasury.
  • Borrowing charge is ISK 52,500 kr..
  • 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 1% applies.
  • Other fees as per the bank's current tariff.

Other information

  • The borrower must pass credit assessment.