Chapter 1 of 10 · Before you start · 5 of 10
Mortgage approval in principle: what it means and how to get it
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
What approval in principle means, how long it takes and lasts, what documents you need, and the difference between AIP and full approval.
Check before you hire: a mortgage advisor should be on the register kept by the Central Bank of Ireland. Central Bank register
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Approval in principle is the first letter you get from a lender. It says how much the lender is prepared to lend, if everything checks out. Most estate agents ask to see it before they take a bid. This guide explains what the letter is, what it is not, how long it takes, and what comes after it.
What approval in principle is
Approval in principle, often called AIP, is a letter from a lender. It says: based on what you have told us and shown us, we are prepared to lend you up to this amount. The amount comes from the Central Bank rules and the lender's own tests.
It is a statement of intent. It tells you, and an estate agent, the price range you can bid in. The glossary covers the other terms you will meet along the way.
What it is not
An AIP is not a loan offer. The lender has not valued a home, because you have not found one. The lender can still say no, or lend less, if:
- Your income or job changes.
- Your bank statements show new borrowing or missed payments.
- The home is valued at less than the price.
- The home is not one the lender lends on, such as one with a serious structural problem.
So an AIP is a strong signal, not a promise. Nothing is binding until the loan offer, and the loan offer has its own conditions.
A worked example
Niamh earns €55,000 and has €42,000 saved. She applies for AIP. The lender checks 4 times her income, which is €220,000. It checks her outgoings and runs a stress test. It issues an AIP for €220,000.
With her savings, that puts her price range at about €255,000. She needs some of the €42,000 for stamp duty, the solicitor and the rest. The cost of buying guide shows what to hold back. The mortgage calculator does the sum for you.
How long it takes
A few days to two weeks, once the lender has everything. The most common delay is a missing document. Online lenders and brokers often turn it around in a few days. A bank branch may take longer.
Send everything in one go. The lender starts the clock when the file is complete, not when you first ask.
How long it lasts
Most AIPs last 6 to 12 months. Each lender sets its own period, so read the letter. If you have not found a home by then, the lender asks for fresh payslips and statements and issues a new letter. That is normal. It is not a refusal.
Keep your accounts tidy during that time. The lender looks at them again at the loan offer stage.
What documents you need
The list is the same for AIP as for the full application. The lender wants:
| Document | What it shows |
|---|---|
| Photo ID and proof of address | Who you are and where you live |
| Three recent payslips | Your current pay |
| A salary certificate | Your job, your pay and whether it is permanent, filled in by your employer |
| An employment detail summary from Revenue | Last year's pay and tax |
| Six months of bank statements | How you manage money |
| Six months of savings statements | Your deposit building up |
| A gift letter, if family are helping | That the money is a gift, not a loan |
| Credit card and loan statements | What you owe |
Self-employed people send accounts and tax returns instead of payslips. The full list, with the self-employed extras, is in the documents checklist. A lender may also check your record on the Central Credit Register. Check your credit record before the lender does.
What estate agents ask for
Most agents ask for proof that you can pay before they take a bid. They want to see:
- The AIP letter, or a broker's confirmation of it.
- Proof of your deposit, such as a savings statement.
- Your solicitor's name.
You do not have to show them the full letter. The amount on it is your business. Many buyers show the agent a letter for the amount they are bidding, not their full limit. Ask your lender or broker for a letter at the figure you want to show.
AIP against the loan offer
| Approval in principle | Loan offer | |
|---|---|---|
| When | Before you find a home | After sale agreed and the valuation |
| Based on | Your documents | Your documents, the valuation and the lender's final checks |
| Binding on the lender | No | Yes, subject to its conditions |
| Lasts | 6 to 12 months, lender by lender | Usually 6 months |
| Needed for | Bidding | Signing contracts and drawdown |
The loan offer is a formal document with conditions. The usual ones are mortgage protection, home insurance and a valuation that matches the price. The valuation guide explains what happens when the value comes in low.
Going direct or through a broker
You can apply to a bank yourself, or through a broker, also called a mortgage advisor (on the Central Bank's register). A broker can apply to several lenders at once and knows what each one wants in the file. Most brokers are paid by the lender. Some charge a fee, which must be in writing before you engage them. Broker or bank sets out the choice, and the mortgage advisor page lists the questions to ask.
If the lender says no, or offers less
A refusal at this stage is not final. Ask the lender why, in writing. The usual reasons are a short time in a job, a missed payment on the credit record, new borrowing, or an income figure the lender reads differently from you. Each has a fix: wait out probation, clear the loan, let six clean months pass, or send the accountant's letter.
Another lender may read the same file differently. Each one has its own tests under the Central Bank's ceiling. A broker can tell you which lender suits the case before you apply again, so you are not leaving a trail of refusals.
Three things that help your application
- Pay every bill on time for six months before you apply. Lenders read your statements line by line.
- Avoid new borrowing. A car loan taken out in the month before you apply cuts what you can borrow.
- Keep gambling off your statements. Lenders look for it.
Where this leaves you
Use the mortgage calculator to see the loan the rules allow, the price it buys and the monthly repayment. Gather the documents in the checklist, then apply. The first-time buyer journey shows what comes next, and get quotes finds a solicitor before you bid.
Questions people ask
What is approval in principle for a mortgage?
It is a letter from a lender saying how much it is prepared to lend you, based on what you have told it and the documents you sent. It is not a loan offer. The lender can still say no later.
How long does mortgage approval in principle take in Ireland?
A few days to two weeks once the lender has every document. Missing payslips or statements are the usual delay. A broker can often get it faster because they know what each lender wants.
How long does approval in principle last?
Usually 6 to 12 months. Each lender sets its own period. If it runs out, you send fresh payslips and statements and the lender issues a new letter.
Do I need approval in principle to view a house?
No, but most estate agents ask for it before they take a bid. It shows you can pay what you offer. Many agents will not let you go sale agreed without it.
Is approval in principle the same as mortgage approval?
No. Approval in principle comes before you find a home. Full approval, called the loan offer, comes after the lender values the home and checks everything. Only the loan offer is a real offer.