What is refinancing?
Refinancing is when you replace an existing loan with a new loan that has more favourable terms. Refinancing can be a good option if you want to gain more equity in your property or if you want to change the current payment load or payment agreement. Refinancing can also be a good option if current terms change, for example, when interest rates change.
You can apply for refinancing with Brú Pension Fund. In the application you have the option to select Refinancing and Brú Pension Fund will process your application accordingly.
> Apply for a refinance loan (mortgage loan application)
I want to refinance, what do I need to know?
- The maximum loan ratio is 65% of the most recent property evaluation.
- The loan amount can never exceed the combined fire insurance valuation and ground property. You can view all properties through www.skra.is
- Brú Pension Loans are only applicable for real estate properties.
- You can apply for a base loan with indexed interest.
- You can apply for a base loan with equal payments or equal instalments.
- The maximum loan amount is 95,000,000 ISK.
- 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.
- Information on utilizing personal pension savings for payments of loan can be found on skatturinn.is and www.leidretting.is
Documents required
- Last year's tax return (skattframtal). Available at Skatturinn.is website – my pages – tax returns from past years (framtal síðustu ára)
- Income tax report for this year and last year (staðgreiðsla). Available at Skatturinn.is 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 Meðlag.is.
- Last payment slips of the loans that will be paid up (if not with Brú) as well as payments slips for any other loans that may be present with liens in other properties, if relevant.
- If, after receiving the loan, you still owe other mortgage loans with the mortgage in the same or other property, you must submit a copy of a payment slip.
- 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