Tax returns and income information are obtained from the Directorate of Internal Revenue. Information on debt owed to credit institutions other than Landsbankinn is collected from CreditInfo along with a credit assessment, if the customer has not had a business relationship with Landsbankinn.

Further data is sometimes required. Additional data may include, as applicable, purchase offers or purchase agreements, status of unpaid public levies or information on overseas income, liabilities or assets.

A credit assessment is valid for 6 months and the data on which the assessment is based may not be more than a month old.

Yes, if you apply for a credit assessment without electronic ID, you must submit a copy of your tax return and withholding tax statement for the previous 6 months. You can obtain these documents electronically at www.skattur.is and take them to your nearest bank branch. In such cases, it may be a good idea to begin by making an appointment with us to save time and make sure that no information is missing.

A credit assessment is required if the loan amount exceeds ISK 2,700,000 for an individual or ISK 5,400,000 for a married or cohabiting couple.

The cost of a credit assessment is ISK 7,900 for an individual and ISK 12,900 for a married or cohabiting couple.

The Central Bank of Iceland has set rules that place a cap on debt service to income ratios on consumer mortgages. This means that monthly payments on new mortgage loans may not exceed 35% of the borrower’s disposable monthly income. For first-time buyers, the maximum is set at 40%.

Calculations of the debt service to income ratio for non-indexed mortgages are based on a loan term of 40 years and the negotiated interest rate but with a minimum of 5.5% interest, while indexed mortgages are based on a loan term of 25 years and the negotiated interest but with a minimum of 3% interest.

Further information on the rules (in Icelandic)