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
The 2026 Rate Environment
European Central Bank rate cuts through 2025 fed through to Irish mortgage pricing, and by 2026 most lenders were offering three-to-five-year fixed rates in the low-to-mid 3% range for first-time buyers with a 10% deposit, with variable rates a little higher. Cashback offers of up to 2% of the loan remain common from the main banks.
Rates vary by lender, LTV and loan size, and quoted 'special' rates often come with conditions such as switching your salary account. Always compare the APRC (annual percentage rate of charge) rather than the headline rate, and ask about break fees before fixing.
The 4x Rule and Its Exceptions
Central Bank rules cap first-time buyer borrowing at 4 times gross income and second-time buyers at 3.5 times, with loan-to-value capped at 90% for owner-occupiers (a 10% deposit). Up to 20% of each lender's first-time buyer lending may exceed the 4x limit — typically to 4.5x, sometimes higher — so approval above the standard multiple is possible but competitive.
A couple earning €90,000 combined can normally borrow €360,000; with an exception, up to around €405,000–€427,500. In 2026 the Central Bank also exempted certain principal-home bridging loans from the LTI limit, which mainly helps buyers who are selling and buying simultaneously.
Documents Lenders Want in 2026
- Three months of payslips and bank statements (some lenders ask for six).
- P60 or tax return; self-employed applicants need two years of certified accounts.
- Proof of savings — a consistent track record matters more than a large lump sum.
- A gift letter if part of your deposit comes from family.
- Your credit report from the Central Credit Register — check it before you apply.
- Evidence of your HTB eligibility if you plan to use it, and your PPS number.