The Central Bank mortgage rules: how much you can borrow

The Central Bank of Ireland sets two limits on every home loan. One limit is on your income. The other is on the price. A lender cannot go past them, except for a small share of its loans each year. This guide explains both limits in plain words, with two worked examples.

The two limits in one table

Gross income is your pay before tax. A couple adds both incomes together. The price limit is the share of the price the loan can cover. The rest is your deposit: at least 10% for a home you live in, and at least 30% for a buy-to-let.

These limits come from the Central Bank's mortgage measures. The rules are a ceiling. They are not an offer. A lender can always lend you less.

A worked example: a couple buying their first home

Aoife earns €45,000 a year. Ben earns €40,000. Together that is €85,000 before tax.

• The income limit is 4 times €85,000. That is €340,000.
• They want a home priced at €380,000. The price limit is 90% of €380,000. That is €342,000.
• The lower of the two figures is the cap. Their loan is capped at €340,000.
• The gap between the price and the cap is €40,000. That is the deposit they need.

Both limits apply at the same time. The lower one wins. Here the income limit wins, so the deposit is a little more than 10%.

A second example: moving home

Clare and Dan own a home already. They are second-time buyers, so the income limit is 3.5 times. Their joint income is €90,000.

• The income limit is 3.5 times €90,000. That is €315,000.
• They want a home at €450,000. The price limit is 90% of €450,000. That is €405,000.
• The loan is capped at €315,000, the lower figure.
• They need €135,000 from the sale of their old home and savings.

The money left after their old mortgage is paid off is called equity. For most movers the equity is the deposit. See the costs of buying for what comes on top.

What "loan to value" means

You will see the term loan-to-value, or LTV, in every rates table. It is the loan as a share of the price. A €342,000 loan on a €380,000 home is a 90% loan-to-value. The Central Bank's price limit is a loan-to-value limit of 90% for a home you live in. Lenders also price by it: a smaller loan against the price often gets a lower rate. The glossary has the other terms you will meet.

The 15% allowances, called exemptions

Each lender may go above the limits for a share of its new lending in a year:

• 15% of its first-time buyer lending.
• 15% of its second and later buyer lending.
• 10% of its buy-to-let lending.

This is called an exemption. It can be an exemption from the income limit, or from the price limit. The rules do not say how far above the limit a lender can go. The lender decides who gets one and how much. It is never a right, and it can run out part way through a year. Mortgage exemptions explains who tends to get one and when to ask.

What is outside the rules

Some loans are not counted at all:

• Switching your mortgage to a new lender, where the loan amount stays the same.
• Restructuring a loan you already have.
• A mover in negative equity, for the price limit only. Negative equity means you owe more than the home is worth.
• Since 8 April 2026, a bridging loan on your own home, for the income limit only.

A bridging loan is a short loan that lets you buy before you sell. The Central Bank changed the rules on 8 April 2026 so that a bridging loan of up to 18 months on your own home does not count in the 3.5 times test. The income limit still applies to the main mortgage. The changes page tracks this and other rule changes.

What lenders add on top

The Central Bank sets the ceiling. Each lender has its own tests under it:

• A stress test. The lender checks that you could still pay if rates rose by a few points.
• Net disposable income. The money left each month after the repayment and your other outgoings.
• Age at the end of the term. Most lenders want the loan paid off by age 65 to 70.
• Your record. Six months of clean bank statements and a clear credit record.

So two people with the same income can be offered different amounts. The limit is where every lender stops. The offer is where one lender starts.

Who counts as a first-time buyer

The Central Bank's test is about loans, not homes. You are a first-time buyer if you have never had a mortgage before. A couple counts as first-time buyers only if neither of them has had one. Someone separated or divorced may qualify again under the Fresh Start rules. Other schemes use other tests. Who counts as a first-time buyer sets them side by side.

Where the rules came from

The measures started in 2015. The Central Bank reviewed them in 2022 and raised the first-time buyer limit from 3.5 times to 4 times from 1 January 2023. The price limit for movers rose from 80% to 90% at the same time. The bridging change of April 2026 is the latest amendment.

What a broker adds

A broker, also called a mortgage advisor (on the Central Bank's register), knows which lenders are giving exemptions and which tests each lender applies. Most brokers are paid by the lender. Some charge a fee, which they must put in writing before you engage them. Broker or bank explains the choice. See the mortgage advisor page for what to ask.

Where this leaves you

Put your income and the price into the how much can I borrow tool. It shows your limit under both rules, the deposit that follows, and the exemption line. Then follow the first-time buyer journey step by step. When you are ready for a solicitor or a surveyor, get quotes.