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First purchase

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First purchase of a residential property

To assist first buyers in becoming owners of a real estate property, Brú Pension Fund offers first buyers to apply for an additional loan. The combined mortgage for loans must not exceed 85%, where the base loan will cover 65% and the additional loan 20%, or the percentage that amounts to 85%.

Apply for a loan (English)          

Common questions about loans


I am a first buyer, what do I need to know?

  • The maximum loan amount is 85% of the purchase price of property.
  • The loan amount can never exceed the combined fire insurance valuation and ground property. You can view all properties through
  • The maximum loan amount is 70,000,000 ISK.
  • Brú Pension Loans are only applicable for real estate properties.
  • If you apply for 85% of purchase price, the base loan will cover 65% and the additional loan 20%, or the the percentage that amounts to 85%.
  • You can apply for a base loan with indexed interest.
  • You can apply for a base loan with equal payments or equal instalments.
  • The additional loan is a fixed product with non-indexed interest, equal instalments and maximum duration of 15 years.
  • If you apply for a loan amount exceeding 50,000,000 ISK, Brú Pension Fund makes higher demands for payment capacity and the minimum credit rating of all applicants is B.
  • At least one applicant must be a fund member of Brú Pension Fund.
  • Maximum duration of the base loan is 40 years if the mortgage is under 65% of property value but shortens to 35 years if the mortgage amount is higher.
  • Applicants do not need to be joined.
  • All applicants must be owners of the property mortgaged for the loan.
  • Overview of equity needs to be submitted with the application (if not derived from other sold property). The overview must be from online banking of the applicant, and must include account owner, date and amount on the account. A screenshot is not sufficient.
  • If you wish to use personal pension savings as equity, you will need to submit an overview to confirm the amount that is available to withdraw. More information about personal savings.

Documents required

    • Last year's tax return (skattframtal). Available at website – my pages – tax returns from past years (framtal síðustu ára)
    • Income tax report for this year and last year (staðgreiðsla). Available at website – my pages – almennt
    • If applicable: Payment plan from the Social Insurance Administration (Tryggingastofnun/TR) - Accessible on Tryggingastofnun website - my pages
    • If applicable: Overview of child support payments (meðlag). Accessible at Með
    • Purchase offer and sales overview.
    • Overview of equity. The overview must be of the owner's bank account that proves the following: The owner of the bank account, date and the available amount. A screenshot is not valid.
    • If applicable: An overview from a personal pension savings holder if you plan to utilize personal pension savings as equity, proving the amount that is available for withdrawal.
    • Copy of valid ID. For example a driving license or a passport.
    • Any addinitoal applicants must submit their consent for data collection. The form is available on the application website or you can click the link here: 7.1.2. Data Collection Consent Form



How to utilize personal pension savings

What is personal pension savings?

Personal pension savings are private savings that you have accumulated through your career and is considered your property. These savings are typically released at retirement age and will be passed down to your spouse or children.

Personal savings can be both private pension and a voluntary additional pension. Private pension is a portion of your mandatory premium payments, divided into a personal savings account with a personal pension fund. The additional pension is an addition to your mandatory premiums and is comprised of additional payments from you and your employer. You choose to contribute 2-4% and your employer 2%, after you have made an agreement with a personal pension fund. 

Brú Pension Fund does not currently oversee any personal pension savings. You can make an agreement with a personal pension fund if you want to apply for additional personal savings.

Additional personal pension on Lífeyrismá

Additional pension savings can be utilized for first purchase of property. By using personal savings allowance you can acquire more equity in your property with income that would otherwise be liable to taxation. The allowance is according to act nr. 111/2016, and act nr. 55/2022.  

Requirements for support of first purchase:

  • You are purchasing your first property or have not owned a property for 5 years.
  • You must not previously have owned more than a 30% share of a residential property.
  • You must own at least a 30% share in the current property and the loan must have a mortgage in said property.
  • You must buy the property yourself or with another person.

Utilization of personal pension savings:

  • You must apply in the following 12 months after signing a purchase agreement.
  • You are allowed to utilize personal pension savings for ten consecutive years.
  • The ten-year allowance begins at a time of your choice.
  • You can use up to ISK 500,000 per year, free of taxation, to buy your first property.
  • The tax-free amount is considered ISK 5,000,000 for the ten year period.

Information on how to utilize pension savings on