Hleður...
Detailed information about the buying process, financing, first-time buyer benefits, and more.
First-time buyers can withdraw pension savings tax-free to finance their first property purchase. This is one of the most important tools you have.
Maximum withdrawal per person per year
Maximum total withdrawal
Maximum withdrawal period
Minimum registered ownership
Withdraw accumulated pension savings as a lump sum for down payment. You choose how many years back you want to withdraw.
Direct future contributions toward loan payments. For non-indexed loans, you can choose to reduce principal or monthly payments.
Use part of accumulated savings for down payment and direct the rest toward loan payments.
The property buying process in Iceland typically takes 12-20 weeks from finding a property to getting the keys.
In Iceland, there are two main types of mortgages: indexed and non-indexed. Which is better depends on circumstances, inflation outlook, and your preferences.
| Metric | First-time buyers | Others |
|---|---|---|
| Max Loan-to-Value (LTV) | 90% | 80% |
| Max Debt Service Ratio (DSTI) | 40% | 35% |
| Stamp Duty | 0.4% | 0.8% |
The Housing and Construction Authority (HMS) offers shared equity loans that help first-time buyers gather a down payment.
You contribute
HMS contributes
Mortgage from bank
The loan is interest-free and payment-free during the loan term. It changes in line with the property value (shared equity) and is repaid upon sale or at the end of the loan term.
| Single | 10.000.000 kr. |
| Couple | 15.000.000 kr. |
| Additional per child under 20 | +2.254.000 kr. |
Shared equity loans are only available for new constructions approved by HMS. Check the list of approved properties at hms.is
A well-prepared inspection can save you millions. Here are the key things to check.
If you're buying an apartment in a multi-unit building, it's very important to check the housing association status:
In addition to the purchase price, you need to budget for various costs.
| Cost | Amount | Note |
|---|---|---|
| Stamp duty (first-time buyers) | 0.4% | Of property value |
| Stamp duty (others) | 0.8% | Of property value |
| Registration fee | 3.800 kr. | Per document |
| Loan origination fee (bank) | 0.5-1% | Often waived for first-time buyers |
| Home inspection | 50-100þ | Highly recommended |
| Real estate agent | 1.5-3% | Usually paid by seller |
If you're a first-time buyer purchasing a 60 million property: