A First-Time Buyer's Guide to Irish Mortgages
8 min read
Before a lender even looks at your application, two Central Bank of Ireland rules set hard limits on what you can borrow. Understanding them first will save you time — and heartbreak at viewings.
The two rules that cap your mortgage
Since 2015, the Central Bank has applied macroprudential "mortgage measures" to every regulated lender in Ireland, built around two limits that operate together.
| Buyer type | Max loan-to-income (LTI) | Max loan-to-value (LTV) |
|---|---|---|
| First-time buyer | 4x income | 90% |
| Second/subsequent buyer | 3.5x income | 90% |
| Buy-to-let | No fixed LTI — lender discretion | 70% |
Your actual maximum loan is whichever of the two rules is more restrictive for your situation — usually the income rule for buyers with a solid deposit, or the deposit rule for buyers with a smaller deposit relative to their income.
Worked example
First-time buyer couple, €100,000 combined income, €40,000 savings
Loan-to-income limit: €100,000 × 4 = €400,000 maximum loan
Loan-to-value limit: with €40,000 as a 10% deposit, the maximum property price the deposit supports is €400,000, implying a €360,000 loan
The deposit is the binding constraint here — maximum loan ≈ €360,000
What lenders assess beyond the Central Bank limits
- Proof of steady income — payslips, employment contracts, or accounts for the self-employed.
- Six months of bank statements showing repayment capacity, often evidenced by rent or savings history.
- Existing monthly commitments — loans, credit cards, subscriptions — which reduce what a lender considers affordable, even within the Central Bank limits.
- Your credit history, via the Central Credit Register.
- A stress test: lenders check you could still afford repayments if interest rates rose, typically modelled around 1 percentage point above your offered rate.
Exceptions to the limits
Lenders are permitted to grant a limited proportion of their annual lending above the standard LTI or LTV limits — commonly called "exceptions." These are limited in number, at the lender's discretion, and not something you can rely on when budgeting for a home search.
Model your own numbers
Frequently asked questions
What's the minimum deposit for a first-time buyer in Ireland?+
10% of the property price, under Central Bank of Ireland rules — meaning the maximum mortgage is 90% of the property's value (90% loan-to-value).
How many times my salary can I borrow?+
Up to 4 times your gross annual income as a first-time buyer, or 3.5 times as a second-time or subsequent buyer, under standard Central Bank loan-to-income limits. Lenders can grant a limited number of exceptions above this each year.
Do government schemes like Help to Buy affect these limits?+
Schemes like Help to Buy and the First Home Scheme provide extra funds toward your deposit on new-build homes, but they don't change the Central Bank's loan-to-income or loan-to-value limits themselves.
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This calculator is provided for informational purposes only and should not be considered financial or tax advice. Figures are estimates based on published Revenue and Central Bank of Ireland rules for the 2026 tax year and may not reflect your personal circumstances. Always confirm your position with Revenue.ie or a qualified professional before making a financial decision.