Chapter 6 of 10 · Buying in a particular situation · 11 of 14
Can you get a mortgage on social welfare in Ireland?
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Which payments lenders count, the Local Authority Home Loan, tenant purchase and the mortgage interest supplement, explained honestly.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
This is a hard question, and this guide gives the honest answer. A mortgage on welfare alone is rare. A mortgage with a welfare payment as part of your income is possible. And two State routes, the council loan and tenant purchase, exist for people the banks turn down. Here is how each works and where its limits are.
The honest answer first
A lender gives you money now and expects it back over 20 to 35 years. It wants income that is likely to last that long and is big enough to cover the repayment with room to spare.
Most welfare payments are smaller than a wage and some are paid only for a time. That is why the usual lenders rarely lend on welfare alone. It is not a rule against welfare. It is a sum that does not work.
Where a welfare payment sits beside other income, the picture changes. A part-time wage plus a long-term payment can add up to an income a lender counts.
Which payments a lender may count
Each lender has its own policy, and the policies are not published in one place. In broad terms this is how they go.
| Type of payment | How lenders tend to treat it |
|---|---|
| A wage, a salary, a pension in payment | Counted in full |
| Long-term payments (a carer's payment, a disability payment, a widow's or surviving partner's pension) | Sometimes counted, often only alongside other income |
| Child Benefit | Rarely counted as income, though it may be set against outgoings |
| Working Family Payment | Sometimes counted, as it depends on being in work |
| Short-term payments (Jobseeker's Benefit, Illness Benefit) | Rarely counted |
| Maintenance under a court order | Often counted, with proof it is paid |
Ask before you apply. A broker (on the Central Bank's register) knows which lenders count which payments; read about the mortgage advisor.
Why the usual lenders say no
The Central Bank's rules let a first-time buyer borrow up to 4 times gross income. Read the Central Bank rules. On an income of €20,000, that is €80,000. The lender then applies its own tests: a stress test at a higher rate, and the money left each month after the repayment and your bills.
On a small income the sums are tight. An €80,000 loan over 30 years at 3.5% costs about €359 a month. The lender asks whether that leaves enough to live on. Often the answer, by the lender's rules, is no.
That is the limit to be honest about. A repayment does not get smaller because your income is low. The council routes below work by lending at a fixed rate and by lending to people who have been refused, not by lowering the repayment.
The Local Authority Home Loan
The Local Authority Home Loan is a mortgage from your county or city council. It is built for people on modest incomes whom the banks have turned down. The rules are these.
- You are a first-time buyer, or a Fresh Start applicant (separated, divorced or after insolvency, with no home now).
- Your gross income is within the limit: €80,000 for one applicant, €85,000 for two. The single limit rose from €70,000 on 1 April 2026 (see changes).
- Two regulated lenders have refused you, or offered less than you need. One letter from a broker can cover both.
- You are aged 18 to 70 and have a right to live and work in the State.
- You are buying or building a home to live in, within your county's price ceiling.
The ceilings are €415,000 in Dublin, Kildare and Wicklow; €375,000 in Cork, Galway and Meath; €345,000 in Clare, Limerick, Louth, Waterford and Westmeath; and €310,000 elsewhere. Some counties are still to be confirmed. Check counties.
The loan is up to 90% of the price. The rate is fixed for the whole term: 4.00% for up to 25 years, 4.05% for up to 30 years.
There is no income floor in the rules. But the council checks that you can repay, in the same way a bank does. It looks at your income, your outgoings and your record of paying rent and bills. Welfare income is looked at as part of the whole. Read the Local Authority Home Loan guide and run the council loan calculator.
A worked example
Niamh works 25 hours a week and earns €24,000. She also gets a long-term carer's payment. Two lenders have turned her down.
- The council loan's income limit is €80,000, so she is within it.
- She has a letter from a broker confirming two refusals.
- She is looking at a home for €180,000 in a county with a €310,000 ceiling.
- The loan is 90%: €162,000. Her deposit is €18,000.
- At 4.05% over 30 years the repayment is about €778 a month.
Whether the council lends depends on its view of her whole income against that €778. The calculator shows the repayment. The council decides the rest.
Buying your council home: tenant purchase
If you rent from the council, the tenant purchase scheme lets you buy your home at a discount. The main rules are these.
- You have been a council tenant, or on a related social housing support, for the period the scheme sets.
- Your household has a minimum reckonable income. The scheme says which payments count towards it, and some welfare payments do. Check the current figure and the list on gov.ie, as they change.
- The discount depends on income, and the council keeps a charge on the home for a set period, so you repay part of the discount if you sell early.
You still need a mortgage or cash for the discounted price. The Local Authority Home Loan can be that mortgage. Read the tenant purchase guide.
The mortgage interest supplement
People still search for this. The mortgage interest supplement was a welfare payment towards the interest on a home loan for people who had lost income. It closed to new applicants on 1 January 2014 and ended on 1 January 2018. There is no State payment towards mortgage interest now.
If you have a mortgage and cannot pay it, the help is different. It is your lender's arrears process under the Code of Conduct on Mortgage Arrears, MABS, and Abhaile, which pays for advice from a solicitor or an accountant. Read mortgage arrears help and money help.
Other help that is real
- The rent tax credit gives €1,000 a year back to a single renter for 2024 to 2026 (€1,150 announced for 2027, waiting on the Finance Act 2026). It only helps if you pay income tax. Read the rent tax credit guide.
- Help to Buy refunds income tax paid over four years, so it pays little to someone who has paid little tax. Read the Help to Buy guide.
- Affordable purchase homes from councils are priced below market for people within income limits. Read affordable purchase.
- The Housing Assistance Payment and social housing are not routes to buying, but they are the routes that exist when buying is not possible now.
What to do first
- Work out your income as a lender sees it: wages, long-term payments, maintenance. Leave out what is short-term.
- Check your credit record for free on the Central Credit Register. Read the credit check guide.
- Apply to two lenders, or ask a broker to do so and to give you the refusal letter.
- Run the council loan calculator against homes within your county's ceiling.
- If you rent from the council, ask about tenant purchase.
Where this leaves you
The council loan calculator tells you whether your income is within the limit, your county's ceiling and what the repayment would be. If the sums do not work today, they may work with more hours, a second income or a lower-priced home. The first-time buyer journey sets out the steps in order when you are ready.
Questions people ask
Can you get a mortgage on social welfare in Ireland?
Rarely on welfare alone. Lenders want income that lasts the whole term and covers the repayment with room to spare. Some long-term payments can count alongside wages. The council's Local Authority Home Loan and the tenant purchase scheme are the two routes built for lower incomes.
Which social welfare payments count for a mortgage?
Each lender decides. Long-term payments such as a carer's or a disability payment are sometimes counted when they sit beside other income. Short-term payments such as Jobseeker's Benefit are rarely counted. Ask the lender, or a broker, before you apply.
Can I get a council mortgage on social welfare?
The Local Authority Home Loan has an income limit, not an income floor, but the council checks that you can repay. It also needs two refusals from regulated lenders. Many successful applicants have a wage plus a welfare payment, rather than welfare alone.
Can I buy my council house while on social welfare?
The tenant purchase scheme lets long-term council tenants buy their home at a discount. It has a minimum income rule, and the council sets out which payments count towards it. Check the scheme's current rules on gov.ie and with your council.
Is there a mortgage interest supplement?
Not any more. The mortgage interest supplement closed to new applicants in 2014 and ended in 2018. If you have a mortgage and cannot pay it, the free routes are MABS, Abhaile and your lender's arrears process.