HOW MUCH CAN I BORROW FOR A MORTGAGE IN IRELAND?

Figuring out how much you can borrow for a mortgage in Ireland is a really important step in your home-buying journey. MortgageLine is here to simplify this process. With our easy-to-use mortgage calculators, you can estimate your borrowing potential and monthly repayments in seconds, giving you the confidence to plan your next steps.

Whether you’re a home buyer or switching a mortgage in Ireland, understanding how much mortgage you can get in Ireland depends on factors like your income, deposit size, and the Central Bank’s lending rules. Let’s dive into what you need to know to get started!

What Factors Affect How Much You Can Borrow?

When calculating how much mortgage you can get in Ireland, lenders consider several factors:

Income and Employment Status

Your gross annual income plays a key role in determining how much mortgage can you get. For first time buyer mortgages, lenders typically allow borrowing up to 4 times your income. For example:

• An individual earning €60,000 annually may borrow up to €240,000.
• A couple with a combined income of €120,000 could borrow €480,000.

Stable, long-term employment boosts your chances of borrowing the maximum amount for a mortgage.

You might be able to get more than 4 times income with a Central Bank Mortgage Exception.

Credit History

Your credit history shows lenders how reliable you are when it comes to loan repayments. Mortgage lenders will review your Central Credit Register record. You can view your record at https://www.centralcreditregister.ie/

A good credit history will not guarantee mortgage approval but is one factor a bank will review.

A bad credit history will also not mean a definite decline; however your options may be limited or result in higher mortgage interest rates.

Speak with a MortgageLine Adviser if you need to ask any Questions about your credit record.

Existing Debts and Financial Commitments

Lenders will assess your current financial outgoings and obligations, such as loans, credit cards and childcare costs, to determine whether you can comfortably afford the proposed mortgage. It is best to keep outgoings as low as possible and avoid any new loans in the 6 to 12 months before applying for a mortgage.

Use Our Mortgage Calculator

Want to know how much you can borrow for a mortgage in Ireland? Our, How much can I borrow? mortgage calculator, takes the guesswork out of the equation. Simply enter your Application & Mortgage Type, employment status and gross annual income and get an instant estimate of your borrowing potential.

Simply add your savings (and any other funds available to you) to the result to see your home buying budget. (Minimum savings of 10% of purchase price required)

Use our Mortgage Repayment Calculator to get an idea of the monthly mortgage repayments.

Central Bank of Ireland Lending Rules

The Central Bank Ireland mortgage rules are designed to promote responsible lending and protect borrowers from overextending themselves. Here are the key guidelines:

Loan-to-Value (LTV) Ratios

• First-Time Buyers: Can borrow up to 90% of the property value (minimum 10% deposit).
• Second-Time Buyers: Can borrow up to 90% (minimum 10% deposit).
• Buy-to-Let Investors: Typically capped at 70%LTV.

Loan-to-Income (LTI) Limits

• First-time buyers can borrow up to 4 times their gross annual income.
• Second-time buyers are capped at 3.5 times their income.

These mortgage lending rules in Ireland ensure that borrowers remain within their financial limits.

How Much Money Can You Borrow vs. How Much Should You Borrow?

It’s important to differentiate between how much you can borrow and how much you should borrow.

Assessing Affordability

Mortgage Lenders underwriters assess to ensure your mortgage repayments are affordable. Use the MortgageLine repayment calculator to get a better sense of the monthly cost and ensure your repayments fit comfortably within your monthly income.
As a guideline it is recommended that the new mortgage repayments should be no more than 35% to 40% of your take home pay.

Stress Testing Your Finances

Interest rates can rise over time. Stress-test your finances by considering potential increases in your monthly repayments. This ensures you’ll be prepared for future changes in market conditions. Try adding 2% to the mortgage interest and see if you think you can afford the increased repayments.

Steps to Boost Your Borrowing Capacity

First speak with one of our experienced Mortgage Brokers.

However, if you’re not happy with your borrowing potential, there are ways to increase it:

1. Improve Your Credit Rating

Paying bills on time, reducing credit card usage, and avoiding unnecessary loans, can help boost your financial strength.

2. Reduce Your Existing Debts

Paying off personal loans or credit card balances lowers your debt-to-income ratio, making you a more attractive borrower.

3. Save for a Larger Deposit

The larger your deposit, the less you’ll need to borrow, and you might gain access to better mortgage rates.

First-Time Buyer Mortgage: How Much Can I Borrow?

First-time buyers in Ireland benefit from more flexible terms:

• Borrow up to 90% of the property value with just a 10% deposit.
• Eligible to borrow up to 4 times your gross income, giving you more purchasing power compared to second-time buyers.

Use our mortgage calculators to see exactly how much you can borrow for a mortgage in Ireland as a first-time buyer! Also read; Tips for getting a mortgage as a first time buyer.

Know Your Borrowing Power with MortgageLine

At MortgageLine, we’re here to make the mortgage process straightforward and stress-free. Wondering how much can I borrow mortgage Ireland? Here’s how we can help:

• Expert Advice: We assess your financial situation to determine your borrowing capacity.
• Tailored Solutions: With access to multiple lenders, we find the best mortgage options for your needs.
• Step-by-Step Guidance: From calculating your buying budget, working out how to be mortgage ready and ultimately securing mortgage approval, we’re with you every step of the way.

Ready to take the next step? Get in touch with our team for help and advice that is tailored to you!

FAQs

1. How much can you borrow for a mortgage in Ireland?
   Your borrowing capacity depends on your income, deposit, and financial commitments. For first-time buyers, lenders generally allow up to 4 times your gross income. Use our calculator to get a more accurate estimate.
2. How does the Central Bank’s LTI limit work?
   The Central Bank of Ireland caps loans at 4 times income for first-time buyers and 3.5 times income for others. Exceptions may apply in certain cases, but they are limited and at the discretion of the lender.
3. What’s the difference between how much you can borrow and how much you should borrow?
   While you may qualify for a high loan amount, it’s important to borrow only what you can afford comfortably. Use our calculator and stress-test your finances to ensure your mortgage fits within your budget.

With the right tools and guidance, figuring out how much mortgage you can get in Ireland is easier than you think.

It is always best to seek advice and it is never too early to speak with someone. Speak with a MortgageLine Adviser today.