Fara beint í efnið


Most people finance the purchase of real-estate property and housing construction with mortgages, and they need to investigate what kinds of terms are available.

Borrowing options

Mortgages are offered by various credit institutions:

  • The Housing and Construction Authority,

  • Commercial banks and saving banks,

  • Pension funds.

Most credit institutions require that a payment ability evaluation accompany loan applications. The payment ability evaluation is a calculation of the borrower's ability to pay and his or her borrowing needs; in other words, an assessment of how expensive a property the person in question will be able to buy based on the value of his or her assets, income and expenses.

Borrowers with the The Housing and Construction Authority will be able to prepare their own evaluation of their ability to pay on the Internet, or they can receive assistance with this over the telephone or at the Fund's facilities. Other lenders usually prepare the evaluation of payment ability for their customers.

The Housing and Construction Authority offers loans to individuals to buy, construct or make improvements on their own accommodation. The residents of Iceland have the same right to obtain the Fund's housing loans, regardless of where in Iceland they live.

The Housing Complaints Committee decides on disputes regarding the decisions of the The Housing and Construction Authority.

About housing loans

All house-purchasing loans are mortgages, which means that they are secured with a mortgage in the property to be purchased or in other real-estate properties.

When a decision is being made as to how large a mortgage will be granted for a house purchase, the reference points are usually the borrower's payment ability and the price of the property. Lenders will also view the assessment of the property to be purchased or mortgaged.

The payment load of the loan, meaning the value of installments, is determined by the interest on the mortgage and the repayment term.

If payment difficulties arise it is possible to seek advice and remedial action from

  • The Housing and Construction Authority,

  • credit institutions,

  • the social services of local communities, and

  • The Debtors' Ombudsman


Get information on different borrowing options and interest rates from the Housing and Construction Authority, banks and other credit institutions.

It is possible to prepare an evaluation of payment ability through the Housing and Construction Authority's website, if you want to check your purchasing power.

Seek remedial action from the creditor or from other advisors as soon as possible if any payment difficulties arise.

Laws and regulations