12 November 2021

Amendments to the Rules on Maximum Debt Service-to-Income Ratios on Consumer Mortgages

The Financial Stability Committee of the Central Bank of Iceland has approved amendments to the Rules on Maximum Debt Service-to-Income Ratios on Consumer Mortgages, no. 1077/2021, which take effect on 1 December 2021.

With the amendments, Article 4 of the Rules is changed so as to authorise lenders to calculate maximum debt service-to-income ratios on the basis of annuity mortgages, irrespective of the payment structure provided for in the mortgage agreement in question.

The changes are provided for in new Rules on Maximum Debt Service-to-Income Ratios on Consumer Mortgages, no. 1268/2021, which will replace Rules no. 1077/2021. The amended Rules are published in the Law and Ministerial Gazette [Stjórnartíðindi] and will take effect on 1 December 2021.
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