Are you buying a new property and want to transfer the old loan with you? Sometimes it can be more economical to transfer an existing loan to a new property rather than taking out a new loan.

This depends on the terms of the current loan and the loan options that are available at any given time, along with the mortgage rate on the new property.

The condition for mortgage transfer is that the loan is not in arrears and that the loan's mortgage status after the mortgage transfer does not exceed the maximum mortgage rate according to the fund's loan rules. The debtors of the mortgaged loan must also be the same as the registered owners of the mortgaged property.

Mortgage transfer is subject to the fund's approval!

APPLICATION: Request for a mortgage transfer

Documentation that must accompany mortage transfer applications:

• Request for a mortgage transfer.
• Loan number of the relevant loan/loans that are requested to be transferred.
• Mortgage statement (the fund can provide this - fee according to tariff.)
• Certificate of real property value (the fund can provide this - fee according to tariff.)
• Approved purchase offer.

Anyone can find themselves in a situation where their income is temporarily reduced and they have difficulty paying off their loans. There are various ways possible to make it easier for everyone to deal with a reduced ability to pay. It is important to contact us in time to find ways that suit you.

Main options include:

• Extending the loan term
• Conversion of equal installments to equal payments
• Refinancing - change the loan type and/or installment type and extend the loan term
• Freezing - payment deferment of up to 6 months
• Adding arrears to principal - each case is assessed individually and the fund must be contacted

APPLICATION: Loan payment deferment request

Those who want to change the terms of a loan are asked to contact Gildi's loan department via the email lan@gildi.is

Deferment is a temporary remedy and can be resorted to in certain circumstances. You can request payment deferment on housing loans from three months to up to six months due to temporary payment difficulties such as unemployment, illness or accidents.

There is also the possibility of freezing a loan due to reduced income during maternity leave.

Freezing a loan means that the borrower does not pay off the loan while the freeze is in effect. Interest and indexation are added to the principal and the loan is extended for the duration of the freeze. Please be aware that the payment burden increases when payments of the loan begin again.

All applications for a payment deferment are assessed and are subject to the fund's approval.

Application: Application for deferment of payment of loans

The following information must be kept in mind regarding the application for a payment deferment:

• The loan must not be in arrears and the borrower must not have a long history of freezing loans
• The reason for the request for a payment deferment must be specified and include the following documentation as appropriate: Confirmation from the Directorate of Labour, medical certificate or payment statement from the Maternity/Paternity Leave Fund
• Payment deferment is not granted for construction

After bonds are issued, it is possible to request a change to the loan. The loan term can be shortened or extended. It is also possible to change the form of payment from equal installments to equal payments, or vice versa. If a change results in a more than 20% increase in the payment burden, a payment ability evaluation must be carried out.

The request must be sent by email to lan@gildi.is along with the following documents:

• Mortage statement and certificate of real property value (the fund can provide this - fee according to tariff.)

If it is requested to add a new debtor or delete a debtor from a property loan, a payment ability evaluation must be carried out in both cases. If a debtor is being added, that person must be the spouse (marriage or civil partnership) of the original debtor as well as the registered owner of the property.

APPLICATION: Request for name change on loan

Please note that the fund will send a link with a payment ability evaluation following the application.

Required documents:

• Purchase offer/purchase agreement (if applicable)
• Mortage statement and certificate of real property value (the fund can provide this - fee according to the fund’s tariff.)
• Waiver (if applicable)

If changes need to be made to a mortgage that take precedence over the mortgage, a mortgage authorisation or a conditional mortgage authorisation must be requested.

The principle is that the fund's collateral position does not decline and that the collateral position meets the fund's requirements and rules as if it were a new loan.

The borrower can request that a loan from a third party take precedence over the fund's mortage on the condition that the fund's loan is repaid, in which case a conditional mortgage authorisation must be applied for.

The request must be sent by email to lan@gildi.is along with the following documents:

• A copy of the mortgage bond(s) which Gildis's loan is requested to be subordinate to.
• Balance of the existing loan to be paid off (if applicable)
• Mortage statement and certificate of real property value (the fund can provide this - fee according to tariff.)