How Much Can I Borrow in Iceland?
Enter your disposable income, your savings and the interest rate you expect to see the highest purchase price you can manage, how big the loan will be and whether your income or your savings set the limit.
General values (Iceland). They don't account for regional rules or other costs that may apply. Check them with your lender or advisor.
More options
In Iceland, the limit we apply only counts the mortgage: your other debts don't change it, but the lender will review them and may lend you less.
Enter your income, savings, interest rate and term.
A rough estimate with a fixed payment. Lenders will also look at your other debts and job stability.
Work out the mortgage for this home →Results are estimates. Solvemis accepts no responsibility for the results obtained or for how they are used. Always double-check the result and talk to a qualified professional before making decisions.
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How it works
How to use it
- Enter your disposable income per month and your available savings.
- Add the interest rate you expect and the loan term.
- Check the percentages for Iceland and change them if needed.
- Look at the maximum price, the breakdown and which limit applies.
How it is calculated
Two prices are calculated and the lower one applies. By income: the loan whose payment is the chosen share of income, plus savings, minus buying costs. By savings: the price at which your savings cover exactly what is not lent and the costs. The percentages are reference values for Iceland. A second applicant's income is added to yours; other debt payments count the way the country's rule counts them.
Sources
- Hvernig virkar greiðslubyrðarhlutfall þegar ég sæki um íbúðalán? — Landsbankinn
- Lög um stimpilgjald nr. 138/2013 — Althingi
- Greiðslubyrðarhlutfall – Húsnæðislán hjá HMS — Ísland.is
About this calculator
How it is calculated
Buying a home has two limits at once. The first is the debt service burden: it must not exceed 35% of disposable income (40% for first-time buyers). The second is savings: the bank lends at most 80% of the purchase price (90% to first-time buyers), and the rest plus the costs is paid with your own money. The calculator finds the price each limit allows and shows the lower one.
What banks in Iceland look at
Besides the Central Bank’s rules, banks assess your ability to pay with a credit assessment (greiðslumat), which takes living costs and other debts into account.
Buying costs in Iceland
Stamp duty is 0.8% of the property’s assessed value (0.4% for first-time buyers), plus registration fees. The 0.8% value is a general reference: check it with your bank or an adviser.
Frequently asked questions
What decides how expensive a home I can buy?
Two things at once: your income decides the highest payment, and your savings have to cover the down payment and the buying costs. The calculator compares both limits and shows which one applies.
Why are the buying costs not in the loan?
The down payment and stamp duty are paid with your own money, so they are deducted from your savings.
Disposable income or total income?
The Central Bank's debt service ratio is based on disposable income, meaning income after tax. If you are buying together, add your incomes.
What if we buy as a couple, or I already pay other loans?
Under «More options» you can add the second applicant's income, which is added to yours, and what you already pay each month for other loans, cards or leasing. In Iceland, the limit we apply only counts the mortgage: your other debts don't change it, but the lender will review them and may lend you less.
Updated 14 October 2026
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