Finding out how much you can borrow is the exciting first step on your journey to buying a home. It helps you understand your budget and focus your property search.
Our mortgage calculator is designed to give you a quick and reliable estimate based on the Central Bank of Ireland’s lending rules. Use it to get a strong indication of your borrowing power in just a few moments.
Mortgage Affordability Calculator
Input your gross annual salary and additional income in the relevant boxes provided and press calculate. The calculator will calculate two results (based on your income inputs) – the minimum and maximum amount.
Calculator
This mortgage calculator is provided for illustrative purposes only and does not constitute a loan application, offer, or financial advice. The results are estimates based on the information you provide and may not reflect actual loan terms or repayments.
Understanding Your Estimate: Why This is Not a Final Figure
It’s crucial to understand that this calculator provides an estimate based on standard lending rules, primarily the Loan-to-Income (LTI) limits set by the Central Bank of Ireland. For most first-time buyers, this is up to 4 times your gross annual income, and for second-time buyers, it’s 3.5 times.
However, this is only a guideline. The final amount you can borrow depends entirely on which lender you approach, as each bank has its own unique set of lending criteria and internal policies. This is where an expert mortgage broker becomes your most valuable asset.
The Broker Advantage: How We Find the Lender That’s Right for You
At JC Mortgage Brokers, we know that every mortgage application is unique. We also know that every lender assesses applications differently. Our job is to match your specific circumstances to the lender who will view your application most favourably.
Here’s how we can make a real difference:
- Variable Income: Some lenders may only accept 50% of your bonus or overtime, while others might consider more. We know which lenders will give you the most credit for your hard work.
- Employment Type: Being a contractor or recently self-employed can be a challenge with some banks. We navigate these complex policies to find lenders who understand and cater to your employment status.
- Financial History: A minor blemish on your credit history might be an automatic ‘no’ from one bank but can be understood and accepted by another. We know who to talk to.
- Securing Exceptions: A limited number of mortgage exceptions are available each year, allowing certain borrowers to exceed the standard LTI limits. With our whole-of-market access, we are perfectly positioned to help you apply for one if you are a suitable candidate.
Other Factors That Influence Your Mortgage Application
Beyond your income, lenders will look at your overall financial health to assess your application. Key factors include:
- Deposit: You will need a minimum deposit of 10% of the property’s purchase price.
- Repayment Capacity: Lenders need to see that you can comfortably afford the repayments. A consistent history of saving and managing rent payments is excellent proof of this.
- Existing Loans: Any current financial commitments, like car loans or credit card balances, will be factored into what you can afford to repay each month.
- Credit History: A clean credit report is essential to show lenders you are a reliable borrower.
Frequently Asked Questions (FAQ)
How much can I borrow for a mortgage in Ireland?
As a guideline, first-time buyers can typically borrow up to 4 times their gross annual income. For second-time buyers, the limit is generally 3.5 times gross annual income. This calculator gives you a good estimate based on these rules.
Are bonuses and overtime included in my mortgage calculation?
Yes, but how they are treated varies by lender. Most banks will consider 50% of your average, non-guaranteed income (like bonuses or commission) over the last few years. We can advise which lender will be most generous for your situation.
What are the Central Bank mortgage rules for first-time buyers?
The two main rules are the Loan-to-Income (LTI) limit, which caps borrowing at 4 times your income, and the Loan-to-Value (LTV) limit, which requires you to have a minimum deposit of 10% of the property price.
Why is a mortgage calculator only an estimate?
A calculator uses the general Central Bank rules. It cannot account for the specific, internal lending criteria of each individual bank, which can vary significantly based on their assessment of risk and your personal circumstances.
How can a mortgage broker help me borrow more?
By having access to every lender in the market, we know which ones are more favourable for certain applicants (e.g., self-employed or those with variable income). We can also identify opportunities to apply for an exception to the standard lending rules, potentially increasing your borrowing capacity.
What other costs do I need to consider besides the deposit?
You should budget for additional costs which typically include Stamp Duty (1% of the purchase price), solicitor’s legal fees (approx. €2,500-€3,000), a lender’s valuation fee (approx. €150), and a surveyor’s report (approx. €400-€500), which is highly recommended.
Ready for an Accurate Mortgage Assessment?
Your calculator estimate is the starting point. The next step is a free, no-obligation consultation with one of our expert mortgage advisors. We will assess your specific circumstances against the criteria of mortgage lenders in Ireland to find you the best possible mortgage. Make contact today on 01-8102032, email info@jcmortgages.ie or submit our Mortgage Roadmap. More on JC Mortgage Brokers.