Ireland Mortgage Borrowing Limit Calculator

About the Ireland Mortgage Borrowing Limit Calculator

In Ireland the Central Bank’s mortgage measures limit how much a lender may lend for a home (what are the mortgage measures?). The loan-to-income limit caps the mortgage at 4 times gross income for first-time buyers and 3.5 times for second and subsequent buyers; the loan-to-value limit means a deposit of at least 10% of the price, or 30% for buy-to-let. A first-time buyer of a new home can add Help to Buy: the lesser of €35,000, 10% of the price and the income tax and DIRT paid in the previous four years.

Enter your income, your savings and the kind of purchase: the calculator applies both limits and Help to Buy to show the highest price you could buy and the mortgage it takes, checks a price you have in mind, and works out the monthly repayment at the interest rate you are offered. Nothing you type leaves your browser.

The loan-to-income limit

A mortgage can be at most 4 times the borrowers’ gross income for first-time buyers and 3.5 times for second and subsequent buyers. The Central Bank’s own example: a first-time buyer couple with a combined income of €100,000 can borrow up to €400,000, and second and subsequent buyers with the same income up to €350,000 (Central Bank). The loan-to-income limit does not apply to buy-to-let mortgages or to mortgages for switching lender (mortgage measures FAQ).

The deposit (loan-to-value) limit

First-time and second or subsequent buyers need a deposit of at least 10% of the value of the home (a mortgage of up to 90%); buy-to-let buyers need 30% (up to 70%). Neither limit applies to switcher mortgages or to mortgages agreed to deal with arrears; borrowers in negative equity who are selling their home are exempt from the deposit limit but not the income limit (FAQ).

Exceptions above the limits

Lenders may lend above the limits for part of their lending: 15% of lending to first-time buyers, 15% to second and subsequent buyers and 10% to buy-to-let buyers can be above them. Who gets an exception is up to each lender, and the limits never guarantee a loan: the lender still assesses whether you can repay (Central Bank).

Help to Buy

Help to Buy refunds income tax and DIRT to first-time purchasers of a new home bought from a Revenue-approved developer, or a self-build, that they will live in for five years (who can claim). The home must cost €500,000 or less and the mortgage must be at least 70% of the price (qualifying property). The refund is the lesser of €35,000, 10% of the purchase value and the income tax and DIRT you paid in the four years before you apply (USC and PRSI do not count), and it is paid to the developer as part of your deposit (for a self-build, to a bank account you nominate), so your mortgage and savings need to cover only the rest (how much you can claim; Help to Buy guide for applicants). With no savings at all, Help to Buy can cover the whole 10% deposit on a home of up to €350,000 if you paid enough tax.

Repayments and the other costs of buying

The monthly repayment on a repayment mortgage is L × i ÷ (1 − (1 + i)^−n), with L the loan, i the yearly interest rate ÷ 12 and n the number of months; the calculator uses the rate you enter and never assumes one. Buying also costs Stamp Duty (1% of the price up to €1 million for a home, on the price before VAT for a new one; the Ireland Stamp Duty Calculator works it out), legal fees, a valuation and a survey, which come from your savings on top of the deposit.

Limitations

• The Central Bank limits are maximums. Your lender also assesses your income, spending, other loans and repayment capacity, and may lend less.
• The income is gross yearly income from employment or self-employment; lenders decide how they count bonuses, overtime, rental and other income.
• Help to Buy is worked out from the tax you enter; Revenue confirms the amount from your records. The First Home shared equity scheme and local authority schemes are not included.
• The repayment assumes one interest rate for the whole term; fixed and variable periods, fees and insurance are not included.
• How lenders treat gifts and other sources of a deposit is their own policy.

Privacy

Everything happens in your browser. What you enter or open here is not uploaded or stored by MySmartCoPilot.