Mortgage Basics in Ireland
A mortgage is a loan used to buy a home. In Ireland, most first-time buyers borrow between 3.5 and 4 times their gross annual income, with a minimum deposit of 10% of the purchase price.
How Much Can You Borrow?
The Central Bank of Ireland sets lending rules:
- First-time buyers: Up to 4 times your gross annual income
- Second-time buyers: Up to 3.5 times your gross annual income
- Exceptions: Up to 20% of each lender's FTB mortgages can exceed the 4x limit
Example: If you earn €50,000 jointly with a partner, you can typically borrow up to €200,000 (4x).
Minimum Deposit
- First-time buyers: 10% of the purchase price
- Second-hand homes: 10-20% depending on price
- Help to Buy: Can contribute up to €30,000 towards your deposit
Fixed vs Variable Rates
Fixed-Rate Mortgage
- Your interest rate is locked for a set period (1, 2, 3, 5, or 7 years)
- Monthly payments are predictable and stable
- Popular choice for first-time buyers in 2026 due to rate certainty
- Typical 2026 rates: 3.5% – 4.5% for 3-5 year fixes
- Breakage fees may apply if you exit early
Variable-Rate Mortgage
- Your rate can go up or down with ECB/market changes
- More flexibility — no breakage fees
- May be cheaper in the short term but carries risk
- Typical 2026 rates: 4.0% – 5.5%
Major Lenders Compared (2026)
| Lender | FTB Rate (3yr fixed) | Max LTV | Cashback |
|---|---|---|---|
| AIB | 3.80% | 90% | Up to €3,000 |
| Bank of Ireland | 3.65% | 90% | Up to €2,000 |
| PTSB | 3.90% | 90% | 2% of mortgage |
| Haven Mortgages | 3.70% | 90% | Up to €2,000 |
| Avant Money | 3.50% | 90% | No cashback |
Rates are indicative and subject to change. Always check with the lender for current offers.
Getting Mortgage Approval
- Check your credit history — order your CCRO report (free once a year)
- Gather documents — 3 months' payslips, bank statements, P60, tax returns (if self-employed)
- Get a statement of savings — lenders want to see a track record of saving
- Apply for Approval in Principle (AIP) — takes 1-2 weeks
- Full approval — once you find a property, your lender does a valuation and issues formal approval
Mortgage Protection Insurance
All lenders require mortgage protection life insurance covering the full loan amount. Shop around — you don't have to buy from your lender. Typical cost: €15–€30 per month per €100,000 borrowed.
Tips for First-Time Buyers
- Get pre-approved before you start house-hunting
- Compare at least 3 lenders — use a broker for access to all rates
- Consider a 5-year fixed rate for long-term stability
- Factor in solicitor fees (€1,500–€3,000) and survey costs (€400–€800)
- Use the Help to Buy scheme if buying new-build