First steps

Right to purchase

Can I purchase a property in Iceland? 

EEA citizens legally domiciled in Iceland have the right to purchase real estate. However, you must apply to the Icelandic Directorate of Immigration for a residence permit. You can find all the information you need about your rights to purchase on the Government of Iceland website

Savings

Saving for you first buy

Saving for your first property can take time. You should start saving as soon as you can. Automatically transferring money to a savings account each month is the most efficient and effective way to save. Choose a savings account to suit your needs and watch your money grow. You can use the Online Bank to choose the fixed sum and which account or fund you would like it transferred to. Your Private Pension can also be used when buying a new home.

Tax effi­cient pen­sion options

An extra pension can be used towards your current mortgage or buying a new home. The option is only available to those who have a private pension. More information is provided here.

Credit score eval­u­ation

Quick credit score eval­u­ation

A quick credit score evaluation is an online calculator designed to assess your payment ability. Open the quick score evaluation

Credit score eval­u­ation

Your credit score shows how capable you are of paying your mortgage payments. You can complete a full evaluation online without visiting our branches. Instant credit score evaluation (in Icelandic)

Mort­gage cal­cu­lator

Mort­gage cal­cu­lator

You now know how much you can afford to pay towards your mortgage each month. Have a look at our range of mortgages and decide which one would be the best option for you.

Click here to calculate the cost of different types of mortgages

Finding the one

Finding the right property

The results from your credit score should give you a better idea of what you can afford. You can now start looking at real estate within your price bracket. You should evaluate several factors such as property size, price per square metre, local services, public transport, etc.

Book an appointment

Book an appoint­ment with one of our con­sult­ants

We strongly recommend booking appointment with a mortgage loan advisor and talk to us about payment capacity and how best to fund prospective real estate purchases.

Mortgage Plus

We offer an extra loan of up to ISK 3,000,000 to help you take that first step. You can find more info about this type of loan further down the page.

The one

You found a house!

Finding the right house is just one step towards homeownership. It's easy to get carried away and forget some of the most essential steps of the process. You should always have the property inspected by a specialist so that you are fully aware of any damage or issues that need to be addressed. You can make an offer on the property, listing the inspection as one of the provisions for completion. That way you won´t lose out on the house but you remain protected.

Bid accepted

Bid accepted

Once you have found the right property and a bid has been accepted, a formal credit score evaluation will be carried out and you can then apply for a mortgage. You will need to choose the right mortgage for you and decide how you want to pay for the property. Usually, the first payment is made when you sign the documents required for the close of sale, the second payment is made when the property is handed over and the third and final payment is made when you receive the title deeds to the property. If you intend to take advantage of your private pension savings, to pay towards the purchase, then please remember that it can take up to 8 weeks to receive your money.

Loan

Loan documents

Once you have made your final decision, the appropriate loan documents are prepared and you will receive notification when they are ready to be signed. The documents are sent directly to the real estate agent. You must read them carefully to make sure they are in accordance with your wishes.

Purchase agreement

Purchase agreement

A certified real estate agent will review all issues pertaining to both you and the seller, e.g., payment arrangements, payments, etc. You should ask the real estate agent to give you a list of all the documentation needed to close the sale. The signed documents are then sent to the District Commissioner. The mortgage is then paid off when the bank receives a registered mortgage bond.

Delivery

Property delivery

The date of the hand over should be negotiated when you complete the details of your purchase agreement.

Waiver

The title deeds

The real estate agent will invite both you and the seller to a meeting where the agent will hand over the title deeds once he/she is certain that both you and the seller have fulfilled your obligations according to the purchase agreement. This process can take several months. Usually, the final payment is made once the title deeds have been handed over, but you can hold back some of the money if you have since discovered any defects that were unknown when the purchase agreement was signed. If everything goes according to plan, then the final payment will go through, and the title deeds will be handed over to you. The title deeds are then sent away to be registered and you will subsequently become the registered owner of the property. 

Private Pension towards a mortgage

Tax effi­cient pen­sion options

You can apply to use your private pension savings to pay directly towards a loan. The government now offers three options regarding the tax-free payment of a private pension towards a mortgage: Read more about these options.

Payments

Extra payments on your loan

You can make extra payments towards the loan via the online bank. The minimum deposit amount is ISK 1,000. Making extra payments can shorten the time it takes you to repay the loan. See further deposit instructions

Maternity/Paternity leave

Are you about to take maternity/paternity leave?

You can delay your mortgage payments by anything up to nine months, if baby is on the way and you are about to start your maternity/paternity leave.

You can apply for a delay to your payments by sending us the payment schedule from the maternity/paternity fund (Fæðingarorlofssjóður). We will review your payment schedule and subsequently ask you to sign- off on any changes to the Terms and Conditions of your mortgage. The costs associated with these changes can be found in Íslandsbanki's price list.