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Mortgage loans

Hús á fjalli

Mortgage Loans

We offer fund members of Brú and LsRb diverse loans for purchase of property, property maintenance or refinancing. Please read the information and different requirements before applying for a loan.

Apply for a loan (English) 

Loan calculator (Icelandic)


Am I applicable for a Brú Pension Fund loan?


We process loan applications as quickly as possible.

The processing of applications can only take place after all documents have been received. If there are multiple applicants, each one must submit a Consent Form for Data Collection. The loan application and consent form are confirmed with electronic credentials when you log into the application website My pages

  • The processing of an application takes three to five weeks.

  • Applications for purchase of real estate are a priority.

Loan options

Here you can read information about the different loan options provided by Brú Pension Fund. Additionally, lífeyrismá provides general information about pension funds and pension loans, and provides information about how to utilize personal savings for the  purchase of property. 

Indexed loans and non-indexed additional loans

Loans are with indexed interest. When you are in the process of a real estate purchase we offer an additional loan with non-indexed interest when the mortgage ratio is between 65% and 75% (85% for first buyers)

Indexed loans

Indexed loans (verðtryggð lán) are indexed to inflation, meaning that the principal amount in your loan can increase. If the inflation rate increases and the principal amount grows, your equity ownership will amount at a slower rate. Indexed interests are usually lower than non-indexed interests, meaning a lower debt load at the beginning of the loan period.

Non-indexed loans

Non-indexed (óverðtryggð lán) loans are not indexed to inflation, meaning that an increase in inflation will not affect the principal of the loan. The principal slowly decreases with each instalment, resulting in faster equity ownership. Non-indexed interests are usually larger than indexed interests, meaning a higher debt load.

Fixed interest or variable interest

Fixed interest

Fixed interest stays constant throughout the duration of loan. By fixing the loan‘s interest, any changes to general interest terms will not affect your interest terms

Variable interest

The variable interest rate of indexed loans is decided every quarter of the year (unless the board decides otherwise) Decisions on interest rates and changes to interest rates are based on the return requirements of market indexed goverment bonds, and/or general market interest terms on similar loans.

According to the law, the indexed loan duration needs to be at least 5 years.

The duration of the loan can go from 5 to 40 years if the overall mortgage is under 65% of real estate value. If the mortgage is higher than 65% of real estate value, the longest available duration for the loan is 35 years.

View interest rates

 Equal payments or equal installments

Equal payments (annuitet)

Each installment is lower and always the same amount. Therefore, at the beginning of your loan period you pay a larger percentage towards interest and less percentage towards the loan principal. As you progress, the installments for the principal increase. You can see a visual progression in our loan calculator.

Equal instalments

A larger amount of each installment goes towards your principal and a lower amount towards interest, meaning that payments are larger in the beginning of the loan period and slowly decrease over the duration of the loan. You can see a visual progression in our loan calculator.


Credit assessment

Brú Pension Fund carries out a credit assessment when you apply for a loan. Credit assessment cannot take place unless the application is submitted. You can view the price list on our website. Information about your credit rating and financial history will be considered.

You can fill out a remporary credit assessment on Brú's website. The results from the temporary credit assessment are meant only as a personal guideline and are not binding.

Fill out a temporary credit assessment.