HMS housing loans

The aim of HMS (Housing and Construction Authority) housing loans is to improve security in the housing market by providing loans to individuals in situations not serviced by other credit institutions. This includes low-income individuals anywhere in Iceland, disabled individuals with special needs, and individuals building or converting housing in rural areas.

• HMS housing loans are only granted for housing intended for personal use.

• It is only possible to own one apartment with a HMS loan.

• It is not possible to refinance HMS loans.

• HMS loans have no prepayment fees.

On the HMS Loan website you can view the status of your applications, loans and make extra down payments.

Equity loans

Equity loans are provided to first-time buyers or those who have not owned an apartment in the last 5 years. Unlike other loans, equity loans have no monthly instalments or interest, instead you pay the loan in full 10-25 years later or when you sell the property.

Home loans

HMS Home loans are provided for purchases of apartments with property value under ISK 73 million. The total loan amount per property can be a maximum of ISK 44 million, never more than 80% of the property´s price or its market value (the lower amount applies).

Special needs loans

Special needs loans are provided to disabled individuals who need to make changes to their housing or buy more expensive housing due to their special needs. Custodians can also apply on the basis of a disabled child’s special needs.

Renovation loans

Renovation loans are provided to individuals who need to carry out necessary maintenance or improvements to their home. If renovations are being made to apartment buildings each owner has to apply for a loan.

New construction loans

New construction loans are provided to individuals who are building new housing or have purchased properties that are not ready.

Loans for rural areas

Loans for rural areas are provided for the construction of affordable housing in areas where financing is difficult to obtain or where interest rates are much higher than in other regions of the country.