Market share in loans for initial housing was 38%
Landsbankinn lends up to 85% of the purchase price of residential housing. Loans are granted for up to 70% of the purchase price with an up to 35-year term and the option of a supplementary loan of 15%, mainly useful to first-time buyers. Landsbankinn supports first-time buyers by cancelling its borrowing charge.
In 2019, the Bank issued loans to 1,056 families or individuals for first-time housing purchases, a total of ISK 30 billion. The Bank's market share in loans to purchase initial housing was around 38% in 2019. Clearly, a large number of first-time home buyers chooses to finance the purchase with loans from Landsbankinn.
Interest rate changes and variable interest rates more common
Landsbankinn lowered interest rates in 2019. Lowest non-inflation indexed rates on housing loans were 6% at the beginning of 2019 and stood at 5.05% at year end. The total decrease during the year is 0.95 percentage points. Inflation-indexed interest rates decreased by 0.35 percentage points during the year, from 3.55% to 3.2%.
Around 79% of all new housing loans issued by Landsbankinn in 2019 had a variable interest rate, a higher ratio than previously.