• Gildi offers a variety of loans for property purchases, and loans are available for up to 70% of the property's purchase price. Basic loans, for up to 60% of the purchase price, and additional loans between 60%-70% are granted
• The maximum loan amount is ISK 75,000,000 combined with the loan amount from a superior lien. Loans can not exceed 100% of the fire insurance assessment plus the lot evaluation.
• Gildi issues loans in a continuous order, beginning with the first mortgage. An exception can be made from the claim above for first priority lien and a continuous order of liens if the loan amount from other lenders is less than 20% of the purchase price.
• You can choose between indexed and non-indexed loans with equal payments or equal installments.
• Indexed loans can have variable interest or fixed interest, but non-indexed loans can only have variable interest.
• There can not be more than two buyers, as loans are only granted to individuals or cohabiting partners.
• A copy of the signed purchase offer, a sales summary for the property being sold, a payment plan from the Social Insurance Administration (TR) (if applicable) and a tax assessment notice (if applicable) must be included with the loan application.
• If you are buying a new building and there is no fire insurance assessment for the property, you must send a copy of the construction insurance for the property.

• You can refinance for up to 70% of the property value. Basic loans, for up to 60% of the property value, and additional loans between 60%-70% can be granted.
• The maximum loan amount is ISK 75,000,000 combined with the loan amount on the previous mortage. Loans do not exceed 100% of the fire insurance assessment plus the lot evaluation.
• Gildi issues loans in a continuous order, beginning with the first mortgage. An exception can be made from the claim above for first priority lien and a continuous order of liens if the loan amount from other lenders is less than 20% of the property’s value.
• You can choose between indexed and non-indexed loans with equal payments or equal installments.
• Indexed loans can have variable interest or fixed interest, but non-indexed loans can only have variable interest.
• If you are refinancing a loan from another lender, you must always go through a payment ability evaluation, even if the payment burden of property loans is decreasing.
• A payment plan from the Social Insurance Administration (TR) (if applicable) and a tax assessment notice (if applicable) must be included with the loan application.
• Gildi pays off property loans from other credit institutions, but the fund cannot pay off other debts that are not connected to the property, such as short-term personal small loans or overdrafts.
• You need to apply for refinancing if you want to increase the loan, change the combination of non-indexed and indexed loans or change the interest form of loans.
• Refinancing is not required if you want to change the period of the loan or the repayment type of the loan. This can be changed by changing the terms of the loan.

• The pension fund performs a payment ability evaluation and evaluates the applicant's credit rating.
• An exception to the payment ability evaluation may be made if a loan from the pension fund is being refinanced, which is only aimed at paying off an older property loan or loans, along with borrowing costs. Furthermore, a change must not result in an increase in the payment burden.
• The evaluation is based on regular 12-month income according to the withholding tax record from the Directorate of Internal Revenue.
• Rental income is not taken into account in the payment ability evaluation.
• A spouse may not be included in the payment ability evaluation if they are not the registered owner of the property.

• The Central Bank of Iceland has set rules on the maximum payment burden for property loans. They include that the payment burden of property loans can be a maximum of 35% of disposable income, except in the case of a first purchase, in which case it can be a maximum of 40%.
• The criteria for calculating the maximum payment burden according to the Central Bank’s rules is equal payments. If the loan is non-indexed, a loan period of 40 years and a contractual interest rate of at least 5.5% are assumed. For indexed loans, a loan period of 25 years and a contractual interest rate of at least 3% are assumed, although the payment arrangement and loan period of the loan may be different.

Yes, it is possible to make additional payments on a loan.

If the person in question has online banking with Íslandsbanki, it is done with a command in the online banking, but alternatively, it is possible to transfer to account 0526-22-1, ID No. 421289-2639, and have the loan number in the reference (Íslandsbanki is the collection agency).

If a loan is being paid off, Íslandsbanki must be contacted with the prepayment value for the day the loan is paid off.

There is no prepayment fee on loans from Gildi, and they can be paid off at any time.

The Icelandic Central Bank has set rules on the maximum debt service-to-income ratio (DSTI) in proportion to disposable income. The maximum DSTI for housing loans is 35% of monthly disposable income. The maximum goes up to 40% for first-time buyers and up to 37,5% when one of the two buyers has previously owned a property.

Debt service on non-indexed mortgage loans is calculated based on a minimum interest rate of 5.5% and a maximum loan term of 40 years, while debt service on indexed mortgages is calculated based on a minimum interest rate of 3% and a maximum loan term of 25 years.

You have to pass both a payment ability evaluation and a credit rating.

In order to get a loan, you have to provide a mortgage on a residential property in Iceland. The mortgage rate must never be higher than 70% of the appraised market value of the relevant property. The estimated market value is based on a recent purchase agreement or property assessment of the current year.

Loans are divided into basic loans and additional loans, depending on the mortgage rate. A basic loan has a mortgage rate of up to 60%, and an additional loan has a mortgage rate of 60–70%.

The mortgage may not exceed 100% of the property’s fire insurance appraisal plus the plot assessment.

As an example, the maximum loan for a property with a value of ISK 30 million is ISK 21.0 million as long as the conditions for a fire insurance appraisal are met. An amount greater than ISK 75 million is not lent (including additional loans). More information can be found in loan rules.

Gildi’s Board of Directors decides on changes to the interest rates of mutual fund loans. In those decisions, interest rates on the market for similar loans and the fund’s risk assessment are mainly considered, but other factors are also taken into consideration. They vary depending on the type of loan, but they can include the Central Bank of Iceland’s policy rates, deposit rates as well as historical and expected inflation. More information can be found in Gildi’s loan rules.

It generally takes 2–3 weeks to process a loan application.

The borrower himself has to get the bonds publicly registered; how long it takes varies depending on the District Commissioner’s Office.

The bonds themselves must be signed with two witnesses and submitted for official registration and collected once the registration has been completed. A bond will not be paid out until the registered document has been received by the fund.

If the instalments or interest are not paid on the due date, late payment interest will be paid in addition to collection costs according to the tariff of a commercial bank or legal firm at each time.

If the contract is not fulfilled, Gildi may move up the entire debt to the due date without notice. As a last resort, the borrower’s home (mortgaged property) may be foreclosed.