Chapter 1 of 10 · Before you start · 8 of 10
Mortgage exemptions: borrowing above 4 times your income
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
How mortgage exemptions work in Ireland: the 15% allowances, who lenders give them to, when to ask, and why an exemption is never certain.
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.
The Central Bank limits a first-time buyer to 4 times income and a mover to 3.5 times. But each lender can go above those limits for a small share of its loans. That is an exemption. This guide explains how the share works, who tends to get one, when to ask, and why nobody can promise you one.
What an exemption is
An exemption is a loan above a Central Bank limit. There are two limits, so there are two kinds:
- An income exemption. The loan is more than 4 times income (first-time buyer) or 3.5 times (mover).
- A price exemption. The loan is more than 90% of the price, so the deposit is under 10%.
The income kind is the common one. A price exemption is rare. The Central Bank rules explain both limits in full.
A worked example
Sinéad earns €60,000. Under the rules, 4 times her income is €240,000. She wants a home at €290,000, so she needs a €261,000 loan with a €29,000 deposit. That is 4.35 times her income. Only an exemption gets her there.
A lender that uses an exemption limit of 4.5 times could lend her up to €270,000. That figure is an illustration. The rules do not set it. Each lender sets its own, and it can change.
The 15% share
The rules let each lender lend above the limits for a share of its new lending in a calendar year:
| Type of lending | Share that can be above the limits |
|---|---|
| First-time buyers | 15% |
| Second and later buyers (movers) | 15% |
| Buy-to-let | 10% |
The share is measured by the value of loans, not the number of people. A lender tracks it through the year. When it is used up, no more exemptions until January.
Buy-to-let loans have no income limit, so a buy-to-let exemption is from the 70% price limit only.
Why an exemption is never certain
Three things make it uncertain:
- The lender chooses. The rules give the lender a budget, not you a right.
- The budget runs out. Many lenders give most of their exemptions in the first months of the year.
- The lender's own tests still apply. The stress test, your outgoings, and your age at the end of the term do not go away.
So nobody can promise you one. A broker can tell you which lenders are still giving them this month. That is the most anyone can say. Treat an exemption as a possibility, and plan on the standard limit.
Who tends to get one
Lenders do not publish their tests. From what brokers and the lenders say in public, these help:
- Steady income from a permanent job or a long-running business.
- A good chance of rising income, such as a trainee in a profession.
- Low outgoings: no car loan, no credit card balance, no child care costs that squeeze the budget.
- A strong savings record over at least six months, with rent paid on time.
- A clean credit record with no missed payments.
- A deposit above the minimum 10%.
Two incomes do not always help more than one. The lender looks at the money left after the repayment. A couple with high child care costs may have less room than a single buyer with none.
When to ask
Ask early in the year. January to April is when most lenders have the most room. Ask before you bid on a home. Your approval in principle should say how much the lender is prepared to lend, with or without the exemption. Approval in principle explains what that letter is and is not.
If the first lender says no, another lender may say yes. Each lender has its own 15% share and its own view of your case.
How to ask
There is no exemption form. You ask as part of the application. Three things make the ask work better:
- Say the figure you need and why. "We need €261,000 on a home at €290,000" is a case. "How much can we get?" is not.
- Show the room in your budget. Bring the last six months of statements with the rent and the savings standing out. The lender wants to see that the higher repayment fits.
- Ask the lender to say in writing what it is prepared to lend with and without the exemption. Then your approval in principle shows both figures, and you can bid with the lower one in mind.
If the answer is no, ask what would change it. Sometimes it is a cleared car loan. Sometimes it is January.
What a broker does
A broker, also called a mortgage advisor (on the Central Bank's register), places your case with lenders. For exemptions, that matters because:
- Brokers hear from lenders when the exemption budget is open or closed.
- Some lenders only take applications through brokers.
- A broker can present your case the way a particular lender likes to read it.
Most brokers are paid by the lender. Some charge a fee, and they must tell you in writing before you engage them. See the mortgage advisor page and broker or bank for the questions to ask.
What an exemption does not change
An exemption raises the loan. It does not change what you can afford. A €270,000 loan at 3.5% over 30 years costs more each month than a €240,000 one. Put both figures into the repayment calculator and look at the monthly payment, not just the price it unlocks. Then look at the full cost of buying, which does not fall because the loan rose.
Switching does not need one
If you already have a mortgage and want a better rate, the limits do not apply at all. A switch of the same loan to a new lender is outside the rules. So you do not need an exemption to switch, even if your loan is now more than 3.5 times your income.
Where this leaves you
Put your income and the price into the how much can I borrow tool. It shows the standard limit, and marks where an exemption would take you. Plan on the standard figure, and treat anything above it as a bonus. The first-time buyer journey takes you through the next steps, and get quotes finds a solicitor when you have a home in mind.
Questions people ask
What is a mortgage exemption in Ireland?
It is a loan above the Central Bank's limits. A lender can give them for up to 15% of its first-time buyer lending and 15% of its mover lending each year. The lender decides who gets one.
How do I get a mortgage exemption?
You ask the lender or a broker, and the lender decides. Strong, steady income, low outgoings and a good savings record help. There is no form and no right to one.
How much can you borrow with an exemption?
The rules do not set a figure. Each lender sets its own limit for exemptions, often around 4.5 times income for a first-time buyer. Some go a little higher, some lower.
When do lenders give exemptions?
Mostly early in the year, when the 15% share is unused. Some lenders stop giving them later in the year once the share is used up. A broker usually knows which lenders still have room.
Can I get an exemption on both the income and the deposit rules?
The rules let a lender give an exemption from either limit. In practice, most are from the income limit. An exemption from the 90% price limit is rare.