Housing loans
Festa pension fund provides real estate mortgage loans to fund members. The applicant must be a member of Festa pension fund and have paid premiums to the fund for 6 months of the last 12 months to be eligible for a loan.
The accumulated mortgage debt, in addition to the fund's loan, may not exceed 70% of the official property valuation or the sale price of the property according to the new purchase agreement (not older than three months from when the loan application is received by the fund). However, the total mortgage can never exceed 85% of the official fire insurance value of the mortgaged property. The loans are indexed and based on the consumer price index. The terms and conditions are presented on the website, and you can also calculate the cost and installments of loans in a loan calculator.
Attention is drawn to the fact that according to the regulation of the Central Bank of Iceland No. 216/2024 on the maximum payment burden of real estate loans in proportion to the consumer's income, the payment burden of real estate loans shall be a maximum of 35% of the monthly disposable income of consumers when real estate loans are granted. See further discussion in the fund's loan terms and conditions under article 3.3.
