How Much Can I Borrow for a Mortgage in Ireland?

One of the first questions we get asked at JC Mortgages is simple: “John, what’s the absolute maximum I can borrow?”

It’s the most important number in your property journey. It dictates whether you are looking at a semi-detached in the suburbs or an apartment in the city. But the answer isn’t always a simple calculator figure.

The Answer:

● First-Time Buyers can typically borrow up to 4 times their gross annual income.

● Second-Time Buyers (Movers) are generally capped at 3.5 times their income.

However, as mortgage brokers who deal with lenders every day, we know the “official” rules are just the starting point. Between exceptions, variable income allowances, and schemes like the First Home Scheme, the final figure can vary significantly depending on who you apply with.

Here is exactly how the numbers work for every type of buyer.

The “Golden Rules” of Borrowing (Loan-to-Income)

The Central Bank of Ireland sets limits on how much banks can lend to protect the economy. These are known as Loan-to-Income (LTI) caps.

1. First-Time Buyers (FTB)

The Limit: 4 x your gross annual income.
Example: A couple earning a combined €80,000 can borrow €320,000.
The Deposit: You need a 10% deposit (90% Loan-to-Value).

2. Second-Time Buyers / Movers

The Limit: 5 x your gross annual income.
Example: The same couple earning €80,000 would be capped at €280,000 if they are trading up.
The Deposit: You also need a 10% deposit (this rule was relaxed in 2023, reducing the requirement from the previous 20%).

3. Switchers / Remortgagers

The Rule: If you are switching your mortgage to get a better rate and not borrowing extra funds, the income limits generally do not apply in the same strict way. The main check here is your Loan-to-Value (LTV) and repayment capacity.

The “Secret Menu”: Mortgage Exceptions

You may have heard friends say, “I got 4.5 times my salary.” This is what is known as an exception.

Lenders are allowed to break the rules for a small percentage of their customers. The exception limits are:

First-Time Buyers: Can potentially borrow up to 75 x income.
Second-Time Buyers: Can potentially borrow up to 5 x income.

Will I get an exception?

Banks don’t hand these out easily. To qualify, you generally need:

Higher than average income (often €60k+ for singles, €100k+ for couples).
A “clean” financial record (no missed payments, no gambling transactions).
A strong savings habit.

Broker Note: Not all banks release exceptions at the same time. Some run out by June; others save them for later in the year.

Variable Income: The “Hidden” Borrowing Power

This is the biggest gap we see in online calculators. If you earn a base salary of €50,000 but make another €10,000 in overtime, commission, or bonuses, how is that calculated?

Bank A might ignore your overtime entirely.
Bank B might take 50% of your average bonus.
Bank C might take 100% of your guaranteed overtime.

This can swing your borrowing power by €40,000 or more.

Never assume your borrowing limit based on your basic salary alone. Let us assess your payslips to see which lender treats your variable income most favourably.

So, how much can you really borrow? You can get a free personalised consultation with JC Mortgages simply Call Us: 01-8102032 or Email: info@jcmortgages.ie.

Bridging the Gap: Government Schemes

If the 4 x rule doesn’t give you enough to buy the home you want, two government schemes can essentially “top up” your budget.

1. The Help to Buy (HTB) Scheme

This is a tax refund of up to €30,000.

Impact: The HTB scheme does not increase your borrowing limit (the loan itself), but it increases your deposit. This reduces the mortgage amount you need, making the 4x limit easier to fit into.

2. The First Home Scheme (FHS)

This is a game-changer for borrowing capacity. The government steps in and takes an equity share in your new build home (up to 30%).

Impact: If the bank lends you €300,000 but the house costs €400,000, the FHS can provide the missing €100,000 (subject to criteria).
Important: You must max out your mortgage (4x income) before accessing this scheme.

Summary Table: What You Can Expect

Buyer Type	Standard Income Cap	Maximum Exception	Min. Deposit Required
First-Time Buyer	4 x Income	4.75 x Income	10%
Second-Time Buyer	3.5 x Income	4.5 x Income	10%
Fresh Start*	4 x Income	4.75 x Income	10%
Buy-to-Let Investor	Varies (Rent coverage)	N/A	30%

*Fresh Start: Applicants who are divorced, separated, or have gone through insolvency may be treated as First-Time Buyers again.

The “Stress Test” (Can you actually afford it?)

Regardless of the 4 x rule, every bank performs a Stress Test. They check if you could still afford your mortgage if interest rates rose by 2% above the current rate.

If you have high childcare costs, expensive car loans, or credit card debt, the bank may lend you less than 4 x your income to ensure you pass this stress test.

Top Tip: Clear short-term debt (like car loans) before applying. It often boosts your borrowing capacity significantly more than the value of the loan itself.

Frequently Asked Questions

While payslips prove you have cash flow, they do not verify the sustainability of your income. A Salary Certificate is a specific, mandatory document that must be signed and stamped by your employer. It confirms your employment status (e.g., permanent vs. probation) and explicitly separates guaranteed salary from variable income (overtime/bonuses). Lenders require this to apply the correct risk weighting to your earnings.

Not necessarily. While three years was the traditional standard, many lenders in 2025 accept two years of certified accounts, Revenue Form 11s, and Chapter 4 receipts. Lenders typically assess your borrowing capacity based on the average net profit of these two years. However, if your most recent year shows a decline in profit, they may base their offer solely on that lower figure.

Lenders are legally required to check the CCR for any loan application. The register records details of all loans of €500 or more, including credit cards, overdrafts, and personal loans. It does not provide a “credit score” but displays a factual history of your repayments. Any active loans found here will be deducted from your net disposable income, directly reducing the maximum mortgage amount you can borrow.

Once you submit a full documentation pack, securing an Approval in Principle (AIP) typically takes 5 to 10 working days. This approval is generally valid for 6 months, giving you a window to find a property. Once you go “Sale Agreed,” progressing to a full formal Loan Offer (which requires a property valuation) can take an additional 2 to 4 weeks.

Next Steps

Calculating your borrowing power isn’t just about multiplying your salary by four. It is about understanding which lender will look at your overtime, who has exceptions available, and how to structure your application to pass the stress test.

Would you like us to run the numbers for you?

At JC Mortgages, we don’t just use a calculator; we review your specific situation against every lender in the Irish market.

Call Us: 01-8102032 or Email: info@jcmortgages.ie – Let’s get you moving.