What are the rules?
The Central Bank of Ireland sets two limits on every mortgage for a home you’ll live in:
| First-time buyers | Second and later buyers | |
|---|---|---|
| Most you can borrow | 4 × your gross income | 3.5 × your gross income |
| Smallest deposit | 10% of the price | 10% of the price |
Buy-to-let mortgages need a 30% deposit.
The rules have been in place in this form since 1 January 2023. They apply to every regulated lender, including banks, non-bank lenders and credit unions.
How much can I borrow?
Multiply your gross income (before tax) by 4, or by 3.5 if you’ve had a mortgage before. Couples use their combined income.
| Income a year | First-time buyer | Second or later buyer |
|---|---|---|
| €40,000 | €160,000 | €140,000 |
| €50,000 | €200,000 | €175,000 |
| €60,000 | €240,000 | €210,000 |
| €80,000 | €320,000 | €280,000 |
| €100,000 | €400,000 | €350,000 |
Whether a lender counts overtime and bonuses as income is up to them. They’ll also check you can afford the repayments, so you may be offered less than the limit.
What price can I afford?
The loan plus your deposit sets the price. With a 10% deposit, a first-time buyer can afford a home of up to about 4.44 times their income. Your savings need to cover the deposit and the stamp duty:
| Income | Home price | Stamp duty | Savings needed |
|---|---|---|---|
| €40,000 | €177,778 | €1,778 | €19,556 |
| €60,000 | €266,667 | €2,667 | €29,333 |
| €80,000 | €355,556 | €3,556 | €39,111 |
| €100,000 | €444,444 | €4,444 | €48,889 |
Stamp duty is 1% of the price up to €1 million, 2% on the part from €1 million to €1.5 million and 6% above that. You pay it from your savings, on top of the deposit. Legal and valuation fees are extra too.
Which limit will stop me?
Whichever you hit first. With little saved, the deposit rule sets your limit: every €1,000 saved lets you buy about €10,000 more. Once you’ve saved enough, the income rule takes over, and extra savings only add their own value to the price.
Your savings pay the stamp duty first, and the rest is the deposit.
Who counts as a first-time buyer?
For these rules, you’re a first-time buyer if you’ve never had a mortgage before. People who are divorced or separated, or whose home was sold in a bankruptcy or insolvency, can also count as first-time buyers if they no longer own any part of their old home.
If you’re buying with someone who has had a mortgage, neither of you counts as a first-time buyer, and the 3.5 times limit applies.
Help to Buy, the First Home Scheme and the Local Authority Home Loan each have their own definition, usually that you’ve never bought or built a home.
Can lenders go over the limits?
Yes, for a limited share of their lending. Each year, up to 15% of a lender’s first-time buyer mortgages can go over the income limit, and a set share of its other lending can go over the limits too. Lenders decide who gets these exceptions, so ask yours.
Some mortgages are treated differently:
- Switching your mortgage to another lender, without borrowing more, isn’t covered by the limits.
- Short bridging loans, taken while you sell your old home, are treated separately from the limits. Ask your lender how it applies them.
- People in negative equity selling to buy a new home don’t need the 10% deposit, but the income limit still applies.
Help with the deposit
- Help to Buy: first-time buyers of a new home or self-build costing up to €500,000 can get back income tax they paid in the last 4 years, up to €35,000 or 10% of the price, whichever is less, to use towards the deposit. The €35,000 limit applies from 7 October 2026.
- First Home Scheme: mainly for new homes and self-builds. The State and the participating banks pay up to 30% of the price (20% if you also use Help to Buy) in return for a share in the home, which you can buy back whenever you like, in one go or in parts. You must borrow the most a participating lender will give you, and there are price limits by area.
- Local Authority Home Loan: a government-backed loan from your council of up to 90% of the value, for first-time buyers whose bank offers aren’t enough. You need proof of insufficient offers from two lenders, and income limits are €80,000 for one person and €85,000 for two. It has its own rules, including limits on the price and a check of what you can afford to repay.
Work it out for your income
Our mortgage affordability calculator applies the income and deposit limits, and takes the stamp duty out of your savings first. See the monthly repayments on any amount with our mortgage calculator.