Quick answer: First-time buyers can borrow up to 4× their gross income with a 10% deposit. Second and subsequent buyers (SSBs) are limited to 3.5× income but can also borrow up to 90% LTV (10% deposit) — the same LTV as FTBs since January 2023. You need Approval in Principle (AIP) before bidding seriously on a property.
Central Bank Mortgage Rules (2026)
The Central Bank of Ireland sets limits on how much banks can lend.
Loan-to-Value (LTV) Limits
| Buyer Type | Max LTV | Meaning |
|---|---|---|
| First-time buyers (FTBs) | 90% | Minimum 10% deposit required |
| Second and subsequent buyers (SSBs) | 90% | Minimum 10% deposit required |
Since January 2023: the Central Bank removed the separate 80% LTV cap that previously applied to SSBs. Both FTBs and SSBs can now borrow up to 90% LTV. The key remaining difference is the income multiple — SSBs are capped at 3.5× gross income, whereas FTBs can borrow up to 4×. Source: Central Bank — targeted changes to mortgage measures (Nov 2022).
Example (FTB): Buying a €400,000 home → maximum mortgage = €360,000. You need at least €40,000 as a deposit.
Example (SSB): Buying a €400,000 home → maximum mortgage = €360,000. You need at least €40,000 as a deposit (same LTV as FTBs). However, if your income only supports a smaller mortgage — say 3.5× €90,000 = €315,000 — you'd need a larger deposit to cover the gap.
Income Multiple Limits
| Buyer Type | Income Multiple |
|---|---|
| First-time buyers | Up to 4× gross annual income |
| Second and subsequent buyers | Up to 3.5× gross annual income |
Banks can make exceptions (lend above these limits) for up to 15% of their new lending in any year. Exceptions are not guaranteed and depend on the lender and your profile.
Example (FTB): Combined gross income of €90,000/year → maximum mortgage ≈ €360,000 (4×).
Example (SSB): Combined gross income of €90,000/year → maximum mortgage ≈ €315,000 (3.5×).
The Mortgage Process
- Check your affordability — use the income multiple and LTV rules above to estimate your borrowing capacity.
- Save your deposit — minimum 10% for both FTBs and SSBs. Many lenders prefer to see 6+ months of regular saving.
- Get Approval in Principle (AIP) — a conditional offer from a lender showing how much they'll lend you. Valid for 6–12 months depending on the lender. Required before bidding seriously.
- Find a property and bid — once your offer is accepted, instruct your solicitor.
- Full mortgage application — your lender will require payslips, P60/employer letter, 6 months bank statements, and property valuation.
- Loan offer — issued after the lender's underwriting team approves your full application. Typically valid for 6 months.
- Draw down — mortgage funds are released on closing day. Your solicitor handles this.
What Lenders Look At
- Stable income — lenders look for a reliable income history; exact requirements vary by lender and applicant type.
- Credit history — lenders check the Central Credit Register (CCR). Any missed payments or adverse credit history can affect your application.
- Outgoings — existing loans, car finance, credit card balances. These reduce your affordability.
- Savings record — demonstrates ability to make repayments.
Monthly Repayment Guide
A rough rule of thumb: every €100,000 borrowed over 30 years at ~4% interest costs approximately €477/month.
Example: €300,000 mortgage over 30 years at 4% ≈ €1,432/month.
Actual rates vary — use your lender's mortgage calculator for a precise figure. Fixed rates in Ireland in 2026 typically range from 3.5% to 5% depending on LTV and term.
Key Points
- AIP is not a guarantee — full approval can still be refused if circumstances change.
- Avoid switching jobs or taking on new debt between AIP and draw-down.
- Lenders require buildings insurance on the property. Mortgage protection insurance is also commonly required for owner-occupiers, though exceptions exist.
- Solicitor fees for conveyancing typically run €1,500–€3,000 plus VAT.
Extra Costs to Budget For
Beyond the purchase price, factor in: - Stamp duty — 1% on the first €1m of the price (see our stamp duty guide) - Solicitor fees — typically €1,500–€3,000 plus VAT - Valuation fee — usually €150–€200, required by the lender - Survey — optional but recommended, approx €300–€600 - Mortgage protection insurance — premium depends on age and loan amount - Buildings insurance — required by lender from drawdown - Moving costs — varies widely
Buyer Support Schemes
First-time buyers may be eligible for: - Help to Buy (HTB) — a Revenue tax rebate of up to €30,000 for new builds - First Home Scheme — the State takes a shared equity stake to bridge the affordability gap
Check eligibility at revenue.ie and firsthomescheme.ie.
Common Questions
Q: How much mortgage can I get in Ireland? As a first-time buyer, you can borrow up to 4× your gross annual income with a minimum 10% deposit. On a combined income of €80,000, that's a maximum mortgage of €320,000. Second-time buyers are capped at 3.5× income with a 10% deposit (same LTV as FTBs since January 2023).
Q: What is Approval in Principle and do I need it before viewing houses? AIP is a conditional letter from a lender confirming how much they'll lend you, based on your income and financial position. You don't need it to view houses, but you should have it before making offers — estate agents routinely ask for it.
Q: How long does mortgage approval take in Ireland? AIP typically takes 1–2 weeks after submitting your documents. Full formal approval (after your offer is accepted on a specific property) usually takes a further 2–4 weeks, depending on the lender and how quickly you provide the valuation and final documents.
Q: Can I get a mortgage if I'm self-employed? Yes — but lenders typically require 2–3 years of certified accounts. Self-employed applicants face more scrutiny, so a strong savings record, clean credit history, and a mortgage broker who knows the market will all help.
Sources
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