Green mortgage
A mortgage interest discount and waived origination fee for individuals financing an environmentally certified home in Iceland.
Această oportunitate este disponibilă momentan în limba engleză.
Finance a home with recognised environmental certification. Íslandsbanki waives the loan origination fee and reduces the mortgage interest rate by 0.10 percentage points. Certification covers the building’s environmental impacts, including renewable energy and materials.
The bank lends you money to buy your home or refinance its existing mortgage; you repay the loan with interest. Purchases can be financed up to 80% of the purchase price, while refinancing is capped at 70% of the official property valuation. Borrowing above 50% of the property value carries an interest surcharge. First-time buyers can obtain an additional loan of up to ISK 7 million, with total borrowing limited to 90% of the purchase price.
Choose equal repayments of principal, or annuity repayments with approximately equal total monthly payments. Non-indexed loans can run for up to 40 years, with rates fixed for three or five years at a time or variable rates tied to Central Bank policy rates. Indexed loans, whose repayment amount can change with the index, can run for up to 30 years, with rates fixed for five years at a time. Fixed rates are reviewed after each fixed period; changes in interest rates or the index can affect the total you repay.
Eligibility
- You must be an individual buying a home for your own use or refinancing the mortgage on your legal residence.
- The property must hold recognised environmental certification, such as Nordic Swan certification or BREEAM at Very Good level. These are building environmental certifications; ordinary home ownership alone does not qualify for the discount.
- The bank must approve your creditworthiness, your ability to make the payments, and the home’s value. Borrowing above ISK 75 million is subject to special lending rules.
- The bank requires a first-ranking mortgage, or an uninterrupted sequence of mortgage security starting at first rank. This means the property secures the loan and the bank’s mortgage begins with the highest-priority claim.
- The home must be completed to construction stage B4. For a new build, you can apply when the property has reached a construction stage acceptable to the bank.
- The loan cannot exceed the combined fire-insurance valuation and land valuation by more than ISK 10 million.
- Monthly mortgage payments normally cannot exceed 35% of take-home pay, or 40% for first-time buyers. For this assessment, the bank uses a 40-year term for non-indexed loans and a 25-year term for indexed loans, even when an indexed loan lasts 30 years. You can request an exception if you exceed the Central Bank’s payment-burden limits; the bank assesses each request individually.
How to apply
- Statut
- Deschis continuu
- Condițiile sesiunii de finanțare
- Subject to the bank’s credit, affordability, mortgage-security and environmental-certification requirements.
Apply through Íslandsbanki’s online mortgage application. You must pass the bank’s credit and affordability assessments before approval. Use the green product’s discount-request form to request the interest discount for your certified home.