For standard owner-occupier mortgages, the Central Bank's current loan-to-income limits generally allow up to 4× gross income for first-time buyers and 3.5× for second and subsequent buyers. These are limits, not guarantees of approval.
Irish mortgage measures provide a framework for loan-to-income and loan-to-value limits, but the maximum is not the same as what a lender will approve or what is comfortable for your household budget.
The 4× and 3.5× figures
A first-time buyer with gross household income of €80,000 has a standard LTI ceiling of €320,000. A second or subsequent buyer with the same income has a standard ceiling of €280,000.
The calculation is a starting point. A lender can approve less based on its affordability assessment, credit policy, age, term, other debts or the type of income you receive.
Your deposit matters too
The standard owner-occupier LTV limit is 90%, meaning a 10% minimum deposit. If a home costs €350,000, a 10% deposit is €35,000 and the mortgage would be €315,000.
A larger deposit can reduce the mortgage you need and may improve the LTV band available from some lenders. Remember that your cash also needs to cover buying costs and leave you with an appropriate buffer.
Why a lender may offer you less
- Existing personal loans, car finance, credit-card balances or other commitments.
- Income that the lender does not fully count or treats differently.
- A shorter maximum mortgage term because of age or lender policy.
- Household spending that leaves insufficient room for the proposed repayment.
- The property's value, condition or other lending criteria.
- Credit history or other underwriting factors.
The Central Bank limits set a regulatory ceiling; they do not replace the lender's own assessment.
Example: €80,000 gross income
| Buyer type | Standard LTI ceiling | Illustrative maximum |
|---|---|---|
| First-time buyer | 4× income | €320,000 |
| Second/subsequent buyer | 3.5× income | €280,000 |
These examples use the standard Central Bank LTI limits. A lender may lend less, and limited allowances exist above the standard limits.
What if you are buying a more expensive home?
If the property price is above the mortgage you can borrow, the difference has to come from your deposit and other funds. For example, if you can borrow €300,000 and have €70,000 available for the purchase, a €370,000 property might be within the arithmetic range before buying costs and lender affordability checks.
That does not mean you should spend the full amount. Keep enough money for stamp duty, legal fees, valuation, moving and unexpected repairs.
Can you borrow above the standard limit?
Lenders can use a limited allowance for some mortgages above the standard LTI limits. The Central Bank currently permits 15% of first-time-buyer lending and 15% of second/subsequent-buyer lending to be above the standard LTI limit. Buy-to-let has a 10% allowance.
These are lender-level allowances, not an entitlement for an individual applicant. You should not assume you will receive one.
How to estimate your realistic borrowing range
- Calculate the relevant LTI ceiling from your gross income.
- Calculate the mortgage required after your deposit.
- Check the monthly repayment at several interest rates.
- Subtract your existing debt repayments and normal household costs from your budget.
- Keep cash aside for purchase costs and emergencies.
- Use the result as a planning range rather than a promise of approval.
FAQ
How much can I borrow on €50,000 income?
The standard LTI ceiling would be €200,000 for a first-time buyer or €175,000 for a second/subsequent buyer, before the lender's own assessment.
How much can I borrow on €80,000 income?
The standard LTI ceiling would be €320,000 for a first-time buyer or €280,000 for a second/subsequent buyer, subject to lender assessment.
Can two incomes be combined?
Joint applicants can generally have their relevant gross incomes combined for the LTI calculation, subject to what the lender accepts as qualifying income.
Does a 10% deposit mean I can definitely borrow 90% of the property price?
No. 90% LTV is the standard regulatory ceiling for owner-occupier mortgages. The lender still decides whether the loan is affordable and suitable.
Try the numbers
Official sources
General information only. LTI and LTV limits are regulatory ceilings and lender criteria can be stricter. Confirm the current position with your lender before making a purchase decision.