Taking over older loans from the Housing and Construction Authority can be an advantageous option, especially if their terms are good and the loan term has passed. It can also be advantageous to assume an older loan and take out a new loan in addition. All older HMS loans can be assumed, except loans from the Workers' Construction Fund (marked as 1003). Borrowing fees do not have to be paid at the time of assumption. If there are only assumed loans, but no new loan is requested, there is no requirement that the loans fit within a certain mortgage ratio. If you are assuming a loan and taking out a new loan at the same time, the combined loan amount must fit within the applicable mortgage ratio in each case.

The conditions for the assumption differ depending on which loans are assumed.

ÍLS-mortgage bonds of the Housing Loan Fund and real estate mortgage bond of the Housing Authority

In order to assume ÍLS mortgage bonds and real estate mortgage bonds approved by the Housing Bonds Department, you need to undergo a credit rating and fill out an on-line application.

Loans from the National Construction Fund and the mortgage department of Landsbanki Íslands

If only the loans of the National Construction Fund and the mortgage department of Landsbanki Íslands are taken over, you do not have to meet the conditions for a credit rating. A separate application must be completed. It must be accompanied by a copy of the notarized purchase agreement.

Necessary supporting documents for a credit rating can be obtained here.