x
Common questions
Questions about Pension
Does Brú Pension Fund offer additional pension savings?
Brú Pension Fund does not offer personal pension savings.
However, members of Division V have the option to allocate a portion of their premium payments, up to 3.5%, to a personal pension savings. You can apply for dividing premiums by clicking the link below. You must first make an agreement with a personal pension fund and submit a copy of the agreement with your application.
Do foreign citizens pay premiums to pension funds?
Foreign citizens that make income in Iceland are subject to the same rules as Icelandic citizens and are required to pay premiums to a pension fund.
Where can I access confirmation about my pension payments for TR?
Confirmation of pension payments is accessible through the pension fund website, when you log on with electronic credentials. You will find the confirmation under Lífeyrisgreiðslur (Pension payments)
If I am self-employed, do I need to pay premiums to a pension fund?
Self-employed people are required to pay premiums to a pension fund. According to the law, the required amount must be no less than 15.5% of wages.
Must I pay premiums to a pension fund?
All employees and self-employed people between ages 16 and 70 years are required to pay premiums to a pension fund. The required amount is 15.5% - the employee contributes 4% and the employer a minimum 11.5%.
How do I apply for pension?
You can apply for old-age pension through My pages - umsóknir (applications) or click the link below.
When can I begin receiving pension?
Members of Division A and Division V can choose when to begin receiving pension between ages 60 and 80, and you do not need to be retired from work.
The reference age for full pension entitlement is 67 years. Payments can change depending on when you decide to begin receiving pension.
What is spouse pension?
If a fund member dies, the spouse may be entitled to pension payments. The fund member must have been an active member before passing. Entitlements may vary depending on the Divisions of Brú Pension Fund.
What is disability pension?
If you have paid into the Fund for at least two years and been assessed by a doctor to have incurred actual loss of income due to a disability or loss of capacity to work, you could be entitled to disability pension. Entitlements and conditions may vary depending on the Divisions of Brú Pension Fund.
What is child pension?
If a fund member dies (or become disabled, applicable for Division A), their children may be entitled to children's pension. Entitlements and conditions may vary depending on the Divisions of Brú Pension Fund
Where can I find information about my pension entitlements?
You can access information about pension entitlements on the Fund member's website through the link below. You can then click on Lífeyrisgátt (Pension Gateway) to view pension rights from all pension funds that hold your rights.
Is it possible to divide pension rights between married or cohabitated couples?
Yes, you can divide pension rights between married or cohabitated couples. There are three options. The division does not apply to disability pension, spouse pension or child pension.
- Divide lifelong pension payments that have already begun.
- Divide earned lifelong rights, in the latest before the fund member has reached age 65.
- Divide future rights, that is, the lifelong rights that will accumulate after an agreement about division has been made.
Questions about Loans
How do I apply for a loan?
You can apply for a loan and credit assessment through My pages - umsóknir (applications) or click the link below. When you apply for a loan, it is important that you are able to access electronic credentials, which you can apply for at your personal bank. If there are more than one applicant, all applicants need electronic credentials. Read more about Brú Pension Fund's mortgage loans.
> Apply for a mortgage loan (English)
Where can I access payment slips?
Through My pages - Lán (loans) - Lánin mín (my loans) you can find information about your loan. This information is in Icelandic. If you click on the loan, you will see options:
- Samantekt (overview). This shows the overview for the loan, the criteria and current status.
- Greiðslusaga (payment history). This shows all instalments that have been made towards the loan debt. To see payment slips for instalments you can click on the button on the rights side of the payment in question.
- Gjalddagar (due dates). This shows the schedule for future instalments. When a due date is approaching, you can view an unpaid payment slip by clicking on the button on the right side of the due date in question.
Where can I access information about my loans?
Through My pages - Lán (loans) - Lánin mín (my loans) you can find all information about your loan. This information is in Icelandic. If you click on the loan, you will see options:
- Samantekt (overview). This shows the overview for the loan, the criteria and current status.
- Greiðslusaga (payment history). This shows all instalments that have been made towards the loan debt. To see payment slips for instalments you can click on the button on the rights side of the payment in question.
- Gjalddagar (due dates). This shows the schedule for future instalments. When a due date is approaching, you can view an unpaid payment slip by clicking on the button on the right side of the due date in question.
Can I submit additional payments to my loan?
Through My pages - Lán (loans) - Lánin mín (my loans) you can register additional payments to a loan and thereby pay up a loan in a simple and secure way. If you click on the loan in question, you will see options including:
- Lánareiknir (loan calculator). This gives you the option to calculate the effects of, for example, submitting additional payments to your loan. The loan calculator shows how the payment will be entered and the evolution of future payments as a result. Additionally, you can calculate how shortening the loan period will affect future payments.
- Greiða inn á lán (submit a payment). This gives you the option to submit additional payments to your loan. You register an amount of your choice, confirm, and an invoice for the payment will appear in your online bank.
- Umframgeiðslusamningur (Additional payment agreement). This gives you the option to submit additional payments to your loan periodically. You choose the amount, the schedule, and a payment date out of a month. An invoice will appear in your online bank when the due date approaches, according to the agreement.
Where can I access documents and notices about my loans?
You can view documents regarding your loan by going through My pages - Lán (loans) - Lánaskjölin mín (my loan documents). They include:
- Purchase order (kaupnóta) for the processing of the loan and breakdown of disbursement.
- Standard documents about the loan - will accompany any new loan.
- Notice of any changes to the interest rate (vaxtabreytingar).
- Receipts for personal pension savings payments to a loan.
- Receipts for additional payments (kvittanir fyrir umframgreiðslu)
- Collection notices (innheimtuviðvaranir).
- Final collection warning (lokaaðvaranir).
- Loan overview for guarantors.
- Payoff receipt (uppgreiðslukvittun).
How can I utilize personal pension savings for downpayment or loan payments?
You will need to apply directly through Skatturinn's website, Þjónustuvefur - Samskipti - Fyrsta íbúð (first residential property). You can read more information about how to utilize personal pension savings for a down payment on a first purchase or loan payments.
> Information about Personal pension savings on Skatturinn.is
Can buyers, after 5 years of not owning property, also utilize personal pension savings?
Yes, according to a law change in June 2022, those who have not owned residential property for the previous five years are permitted to utilize laws that support first purchase of real estate property, act nr. 111/2016, if the meet other requirements.
This warrant does not apply to married couples or individuals who are under joint taxation, where one person is a registered owner of a residential property.
Two of us are applying for a loan, do both of us need to be fund members?
Only one applicant is required to be a member of Brú Pension Fund.
Can I apply for a loan at Brú Pension Fund?
- Yes, if you are a member of Brú Pension Fund or LsRb (Reykjavík Employee Pension Fund).
- Yes, if you have previously paid premiums to the Fund. Find out if you are a member.
- If you are interested in becoming a fund member, Division V is open to everyone! To become a member, you must notify your employer that premiums should be paid to Brú Pension Fund, Division V.
Who can apply for an additional loan?
Fund members who are buying a property are applicable for an additional loan. In the case of refinancing, an additional loan does not apply.
> Loan policies
Why should I refinance?
Reasons to refinance can vary.
- Loan terms can change.
- Circumstances can change.
- Desire to lower debt load.
- Desire to increase equity faster.
Before refinancing, there needs to be an examination on the current loan terms, settlement fee, loan period and the cost of refinancing.
Brú Pension Fund's loans do not require a settlement fee. The price list is available on our website, including the cost of a loan application.
How long is the processing time for loan applications?
Brú Pension Fund processes loan applications as quickly as possible. The processing time is typically around one to three weeks but can only begin after all necessary documents have been submitted.
Is there a fee for paying off the loan early?
Brú Pension Fund does not charge a fee for early payoff.
Can I change the duration of the loan after I have received the loan?
You can request for a change of loan terms of the bond according to Brú Pension Fund's loan policies. In some cases, you might need to undergo a credit assessment. You can find the application for loan modification through My pages or click the link below.
> More information about loan modification
> Apply for loan modification (English)
What is the maximum loan amount?
- The loan amount for a 75% mortgage ratio cannot exceed ISK 95,000,000.
- The loan amount for a 80% or 85% mortgage ratio cannot exceed ISK 70,000,000.
What are the mortgage terms?
Loans with a mortgage/collateral in Iceland are only applicable when the mortgage is in a residential property, owned by the applicant and must be in building stage 6 or 7, and assessment level 7 or 8, according to Registers Iceland (Þjóðskrá Íslands)
The maximum mortgage ratio is 85% for an additional loan when purchasing a real estate property. Loans are not granted to those with a mortgage in more than three properties.
> More information in section 5 of Brú Pension Fund's loan policies.
Is a credit assessment from a third party valid?
Brú Pension Fund requires a credit assessment performed by employees of the Fund.
What is the difference between a real estate loan and an additional mortgage loan?
The main difference is that additional loans are subject to higher interest rates and a shorter loan period due to higher risk load.
> View more information about loan differences through the Fund's loan policies.
Where do I apply for a credit assessment?
When you apply for a loan, you also automatically apply for a credit assessment. Apply through My pages - umsóknir.
What will happen if I default on a loan?
If you default on a loan you will need to pay interest on the overdue payments. Serious defaults will be processed through legal dept collection, meaning the loan borrower will have to pay legal fees and other collection costs.
> View more information about changes to loans.
> View more information about changes due to financial difficulties.