Mortgages
How much can you borrow? Loan-to-income and loan-to-value
Last updated 16 October 2026
Central Bank rules cap mortgages at 4 times income before tax for first-time buyers (3.5 for others) and 90% of the price for a home.
Two Central Bank limits decide the most a lender can usually offer you: one based on your income, the other on the price. Your loan has to fit within both, so the lower one decides.
| Buyer | Loan-to-income | Loan-to-value (minimum deposit) |
|---|---|---|
| First-time buyer | 4 × income before tax | 90% (10%) |
| Second and later buyer | 3.5 × income before tax | 90% (10%) |
| Buy-to-let | No limit | 70% (30%) |
An example
A first-time buyer couple earning €90,000 between them want a €420,000 home.
| Income limit: 4 × €90,000 | €360,000.00 |
| Value limit: 90% of €420,000 | €378,000.00 |
| Most they can borrow: the lower | €360,000.00 |
| Deposit needed | €60,000.00 |
| Repayment at 3.8% over 30 years | €1,677.45 |
Here income is the limit, so they need more than the 10% minimum deposit.
Gross income (before tax), not take-home pay
The limit uses gross income before tax. On €90,000 split €50,000 and €40,000, their take-home pay for 2026 is about €74,000 a year, or €6,167 a month. The repayment above takes about 27% of it. Lenders must also check you can afford repayments 2 percentage points higher; see the stress test.
Exceptions
- lenders can lend above the limits for 15% of their first-time buyer and of their second-buyer lending each year, and 10% of buy-to-let lending
- the limits don't apply to switching your mortgage, or to restructuring for arrears
- borrowers in negative equity buying a new home are exempt from the value limit, but not the income limit
- since 8 April 2026, principal home bridging loans of up to 18 months are exempt from the income limit (Citizens Information)
An exception is the lender's decision, not your right. If you use the First Home Scheme, you can't also have an exception.
Work it out
Sources
- Central Bank of Ireland: Mortgage measures (loan-to-income 4x / 3.5x, deposits 10% / 30%) (checked 24/10/2026)
- Central Bank of Ireland: Consumer Protection Regulations, Part 3, Regulation 182: affordability test at a minimum 2% rate increase (checked 24/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.