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Buying Property

Buying a home is both a long-term investment and commitment.

It is important to be well informed about issues regarding the best possibilities to finance the purchase, about what real estate brokers you can work with, and important details about the state of the property you are interested in.

Process of buying a property

The process of buying a property consists of four main steps:

  • Credit score evaluation
  • Purchase offer
  • Applying for mortgage
  • Buying process

Credit score evaluation

Before a bank or financial lending institution issues a mortgage, you will be required to go through a credit score evaluation to determine the amount you qualify for. Many banks offer a mortgage calculator on their websites to give you an idea of the mortgage you may qualify for before requesting an official credit score evaluation.

You may be required to hand in past payslips, your most recent tax report and you will need to demonstrate that you have the funds for a down payment. You will also need to report on any other financial obligations you may have and demonstrate your ability to commit to a mortgage.

Purchase offer

In Iceland, individuals are legally permitted to handle the offering and buying process on their own. There are, however, many things to consider, including legal matters regarding purchasing terms and large amounts of money. Most people choose to have a professional oversee the process. Only certified real estate brokers and attorneys may act as intermediaries in real estate transactions. The fees for such services vary.

Before making a purchase offer, understand that it is a legally binding agreement. Be sure to learn about the state of the property and the true property value. The seller is obligated to provide detailed information on the state of the property and ensure that the sale and presentation material provided corresponds to the actual state of the property.

List of certified real estate agents on District Commissioner website.

Applying for mortgage

You can apply for a mortgage at banks and various other financial institutions. They require a credit score evaluation and an accepted and signed purchase offer.

The Housing and Construction Authority (HMS) issues loans for the purchase of property and real estate.


Borgartún 21
105 Reykjavík
Tel.: (+354) 440 6400
E-mail: hms@hms.is

Icelandic banks issue loans for the purchase of property and real estate. Find out more about the conditions on the websites of the banks or by contacting a service representative at one of their branches.

Arion banki



Savings banks (Icelandic only)

Mortgage options compared (Icelandic only)

You can also apply for mortgage through some pension funds. More information on their websites.

If you are purchasing your first home in Iceland, you have the option of accessing additional pension savings and put them towards the down payment or monthly payments, tax-free. Read more here.

Equity loans are a new solution for those with low-income or limited assets. Read about equity loans.

Finding a property

Real estate agencies advertise in all the major newspapers and there are many websites where you can search properties for sale. Advertisements usually contain essential information regarding the property itself and property value. You can always contact real estate agencies for further details regarding the state of the property.


MBL.is (search possible in English, Polish and Icelandic)


Buying a home is both a long-term investment and commitment.