Mortgages
6 Things Every Irish Homebuyer Should Know About Mortgage Rules
Getting a mortgage in Ireland isn't just about finding the lowest rate — the Central Bank sets rules that shape how much any bank can actually lend you. Here are five facts worth knowing before you start house-hunting.
1. Your income caps your loan more than you'd think
The Central Bank limits how much lenders can lend relative to your salary — this is known as the loan-to-income (LTI) limit. First-time buyers can borrow up to 4 times their gross annual income; second-time and other buyers are capped at 3.5 times. A couple earning a combined €90,000 could, in theory, borrow up to €360,000 as first-time buyers — but that's a ceiling, not a guarantee. Affordability checks still apply.
2. The 10% deposit rule isn't as simple as it sounds
For a home you'll live in, lenders can offer up to 90% loan-to-value, meaning a 10% deposit. But if you're buying a second property or an investment (buy-to-let), that drops to a maximum 70% LTV — a 30% deposit. That's a big jump, and it catches a lot of would-be landlords off guard.
3. Banks have some wiggle room — but not much
Lenders aren't required to adhere to these limits on every single mortgage. Each lender is allowed a small annual allowance of "exceptions" — loans that go above the LTI or LTV limits, usually for strong applicants with secure income. If your numbers are just outside the lines, it's worth asking whether your lender has exception room left for the year.
4. Bridging loans got an exemption in 2026
As of April 2026, the Central Bank introduced an exception for principal home bridging loans, exempting them from the loan-to-income limit. It's aimed squarely at those trading down — typically older homeowners downsizing or "rightsizing" on a lower, often retired income, who'd otherwise struggle to meet the LTI test for a short-term loan. Bridging finance runs for a maximum of 18 months and is repaid from the proceeds of the old home's sale rather than from regular income. The loan-to-value limit still applies — only the income test is relaxed.
5. These rules exist for a reason
The LTI and LTV limits were introduced after the 2008 financial crash specifically to stop the kind of reckless lending that fuelled it. They can feel restrictive when you're trying to stretch for your dream home, but they're also what's kept Irish mortgage arrears far lower than they were in the pre-crash years.
6. First-time buyers get help closing the deposit gap
The 10% deposit rule is easier to manage than it looks, because two schemes exist specifically to bridge it.
The Help to Buy scheme refunds up to €30,000 (or 10% of the purchase price, whichever is lower) of income tax and DIRT paid over the previous four years, for new or self-build homes up to €500,000 — and it's been extended out to 2029.
The First Home Scheme works differently: rather than a refund, the State (via participating banks) takes an equity stake in your home to close the gap between your savings, your mortgage, and the purchase price.
Used together with a 10% deposit, these schemes are why many first-time buyers get into a home years sooner than they expected.
The takeaway
Understanding these rules before you apply — not after you're turned down — puts you in a much stronger position. A quick chat with a mortgage advisor/broker can tell you exactly where you stand against the LTI and LTV limits, and whether an exception case might apply to you.
Thinking about your mortgage options? Search for a mortgage advisor/broker here on vivisor.
For information purposes only. vivisor does not provide financial advice.
