Suitability

Almenni Pension Fund offers its members indexed and non-indexed loans against a mortgage in a property.

  • To be able to apply for a loan, the member must be an active fund member (which means that the member must have paid minimal contributions for at least six of the last 12 months or supplementary contributions for at least 24 of the last 30 months).
  • A member can also apply for a loan under the following conditions:
    • Pensioners can also apply for loans provided they where active members when the pension began.
    • If a fund member has lost rights to apply for a loan due to a temporary absence from the labor market, the right to apply for a loan is re-established of the person submits a valid employment contract with a confirmation that she/he pays hers/his contributions to Almenni Pension fund.
    • Fund members that are buying their first real estate can apply for a loan if they pay minimum contributions and/or supplementary.
    • Current borrowers who do not meet the above conditions have the right to refinance their loans within the fund if they meet the fund’s credit rules.
  • Loans are granted against a mortgage in a property owned by the member or co-owned with a spouse or third party. Existing mortgage, in addition to the Fund´s loan, may not exceed 70% of the property value (which is determined either by the purchase price or property value as determined by the Registers Iceland).
  • Click the links below to find information and an application. As they are in Icelandic, we encourage you to contact us for further information and assistance via e-mail: almenni@almenni.is or phone: 510-2500. You can also visit us weekdays between 9 am and 4 pm at Borgartún 25, 5th floor.

Terms

The fund offers its members indexed or non-indexed loans in the amount up to 80.000.000 ISK:

  • Indexed loans are indexed to the Icelandic Consumer Price Index. Members can choose between a loan with a fixed interest rate for the loan term or fixed interest for the first 36 months but variable interest rate after that, unless the borrower chooses to fix the interest rate again for another 36 months. The loan term can be from 5 to 40 The loan repayment can be either fixed amortizations or fixed payments (annuity).
  • The non-indexed loan’s interest is fixed for 36 months at a time. The loan term can be up to 40 years. The repayment can be either fixed amortizations or fixed payments (annuity).

Mortgages

Loans are only granted against a mortgage.

  • Mortgage has to be a property owned by the member or co-owned with a spouse.
  • Existing mortgage, in addition to the Fund´s loan, may not exceed 60%-70% of the property value (which is determined either by the purchase price or property value as determined by the Registers Iceland) depending on whether the property is pledged against other loans and in what order.

Click here for further  information about loans in icelandic and here to fill out an application. As they are in Icelandic we encourage you to contact us for further information and assistance via e-mail: almenni@almenni.is or phone: 510-2500. You can also visit us weekdays between 9 am and 4 pm at Borgartún 25, 5th floor.

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