Getting a Mortgage in Ireland – How Much Can You Borrow ?

Mortgage lending in Ireland fell dramatically since the height of the property boom in 2009   – but it  have picked up again in 2017 and 2018 . There seems to be a bit of a slowdown in 2019.
In 2017, there was €7.4bn borrowed for home loans by  35,400 people. This was a 30% increase in the total lending from 2016 . The average loan size for first time buyers was €206,216 and €232,275 for second and subsequent buyers.

Lending criteria in 2019 are less strict for first time buyers than they were in 2016.
This – combined with the  Help to Buy scheme might make it easier for more first time buyers get on the housing ladder. (Sadly – it looks like it has just helped to bring about higher house prices.)


The first question most people usually ask about getting a mortgage is ... How Much Can I Borrow ?

Lenders are governed by Central Bank Rules – see here so in general it is 90% maximum “LTV”  for first time buyers – i.e  90% of the House value.
There is also a restriction on mortgages being no more than  more than 3.5 times  annual gross income. (This is know as the income multiple)

Exemptions from Income Rules
The banks are allowed to make exemptions in some cases and can lend more than 3.5 times income to 20% of first time buyers. The exemptions tend to be used up quickly – and it is possible that applications in the first 3 months of the year will have more chance of going over the earnings multiple of 3.5


Single Person  Mortgage – How Much can I Borrow ?

Below are typical figures for mortgage amounts allowed for a single earner who is a first time buyer. (Based on 3.5 times earnings)

Annual Gross
Income
Maximum
Mortgage
Maximum House
Price possible with
a 10%  Deposit
10% Deposit
Required
€32000 112,000 124,400 12,440
€35000 122,500 136,111 13,611
€38000 133,000 147,780 14,780
€40000 140,000 155,556 15,555
€45000 157,500 175,000 17,500
€50000 175,000 194,444 19,444
€55000 192,000 213,330 21,330
€65000 227,500 252,780 25,278
€75000 263,500 292,780 29,278
€85000 297,500 330,560 33,056

Note: The figures will be exactly the same for joint applications. (Just add the two incomes).

See here for some sample mortgage payment calculations to give you an idea of how much your monthly repayments might be.

On the BOI website they have a mortgage calculator where you can see how much you might be able to borrow.


Other Requirements

In general terms – to be accepted for a mortgage offer,  you will need to be permanently employed in  “sustainable employment”. Banks will only lend if they believe your employer will be around in 12 months’ time or more.

If you are self-employed – you will need to have been trading for a minimum of two years.

If you are in contract employment or temporary employment other than in the medical profession, it might be more difficult to secure a mortgage.

You will also need to have evidence of savings built up over a at least a 12-month period to show your ability to make the repayments.  A big gift from a parent may not be enough.
If you are renting  , banks will  usually consider proof of paying rent as similar to saving.


If you have been refused a mortgage by 2 banks – you canthen  apply for an Affordable Mortgage from your local authority – with rates as low as 2% fixed for 25 years. Read more here about the Affordable Mortgage Scheme  (Officially known as the Rebuilding Ireland Home Loan Scheme)


See our listings of the Lowest Mortgage Rates

You might also be interested in the legal costs when buying a house in Ireland