Banks start accepting four times salary borrowing limit

Banks will offer this based on a variety of factors. Borrowing four times your salary can happen but it’s not a given

January 2023 Update

Hello everyone, John Coleman here, Ireland’s mortgage broker.

I have a short one for you today – but very important nonetheless.

Today I’d like to stress three things:

1. Before Christmas, the banks announced that they would be lending 4x salary for property buyers.

While this is true in theory, it’s based on the individual bank’s guidelines.

And they are being very conservative now as risk management is most important to them, so that’s not always the case.

In fact, you’ll be subject to a higher degree of scrutiny when borrowing and trying to get 4x your salary, and it’s less likely they offer that amount based on a variety of factors. 4x your salary can happen but it’s not a given.

2. Second, remember that in a rising rate environment, it’s even more crucial that you demonstrate to the banks that you can meet repayments. Rates just went up and are expected to go up again in March, so start saving now as if rates were higher – as they will be in six months or so when you’re ready to buy.

Plan well ahead and show an ability to save based on future rates to get the maximum amount from the banks possible.

Save for what mortgage rates will be…not what they are today!

3. I also recently started a podcast, Tea & Mortgages w/ John Coleman.

In this brief and friendly podcast, I invite you to sit down and share a cup of tea as we chat about the state of the mortgage and property market, and more.

For those looking to buy property and own a home in Dublin or anywhere in Ireland, this casual and fun podcast will provide some invaluable perspective.

You can listen:

Spotify https://open.spotify.com/show/1TDFazR47lxaUSWCeWyepz?si=be592f99271845b4