The Central Bank of Ireland sets two key limits that shape how much any lender can offer you: a deposit rule (loan-to-value) and an income rule (loan-to-income).
Deposit requirements (loan-to-value)
The minimum deposit you need depends on what kind of buyer you are:
- First-time buyers: minimum 10% deposit
- Second and subsequent buyers: minimum 10% deposit
- Buy-to-let purchasers: minimum 30% deposit
Income multiples (loan-to-income)
- First-time buyers can typically borrow up to 4 times their gross income.
- Second and subsequent buyers are generally capped at 3.5 times gross income.
Lenders have some flexibility
Banks aren't required to stick rigidly to these limits for every single loan. Each year, they're permitted a modest allowance of exceptions above the standard limits — generally in the region of 15% of first-time-buyer lending, 15% of second-and-subsequent-buyer lending, and 10% of buy-to-let lending. This gives lenders some room to accommodate strong applications that fall just outside the standard multiples.
Ireland isn't unusual here — similar macroprudential rules exist across much of the EU, designed to keep national mortgage markets from overheating.
Government supports worth knowing about
Help to Buy Scheme. Aimed at first-time buyers purchasing or self-building a new home priced at €500,000 or less. It refunds income tax and DIRT paid over the previous four years, up to a maximum of €30,000 — a meaningful boost toward your deposit.
First Home Scheme. A shared-equity scheme where the State takes a stake in your new home — up to 30% of the purchase price (reduced to 20% if you're also using Help to Buy) — to help bridge the gap between your savings, your mortgage, and the property's cost. You can buy back that equity stake over time, on your own schedule.
Local Authority Affordable Purchase Scheme. In certain areas, local authorities make newly built homes available at a reduced price to eligible buyers who wouldn't otherwise be able to afford them.
Because eligibility and figures for these schemes can change, it's worth checking current terms with an advisor before you rely on any of them in your budget.
