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Property

Iceland — Property: Mortgage Availability

Terms of Iceland's state HMS home loans: base loans up to 50% of property price (80% fixed-rate), additional loans to 80%. The page does not say whether foreigners are eligible or give maximum loan amounts.

VerifiedGovernment / official sourceHousing and Construction Authority (HMS) – Home loan terms on island.isLast reviewed: 2026-10-27

Key facts

  • Base loans cover up to 50% of the property price; a fixed-rate base loan for the full term can go up to 80%.
  • Additional loans cover 51% to 80% as a second mortgage, with generally higher interest.
  • Property price is the lower of the purchase price or market value.
  • Non-indexed loans run up to 25 years with fixed rates in 3-year periods; indexed loans run up to 40 years with fixed rates in 5-year periods and a principal that can rise with inflation.
  • Fixed-rate loans over the full term run up to 35 years, and loan types can be mixed (part indexed, part non-indexed).
  • The page does not state a maximum loan amount, a payment burden ratio, or whether non-citizens are eligible.

Steps

  1. Identify a lender — Research and choose a bank that offers mortgages to foreign buyers.
  2. Prepare documentation — Gather necessary documents such as proof of income, employment contract, and previous financial statements.

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