Property Market

How much can I borrow?

Each bank and building society has different criteria, or rules, to work out what size mortgage they will offer you. The good news is that just because one mortgage lender doesn't offer you a biig enough mortgage, it does NOT mean that you won't be able to get what you want from another lender.

I will outline how lenders generally calculate what size mortgage they will offer below, but the rules do change frequently, so it's important to speak to a mortgage professional with your specific details.

Important note about how much you can borrow:

There are lots of things taken into account when calculating your approval amount.

These include your existing outgoings, loan commitments, age, breakdown of your income into basic, overtime, bonuses, so I'd highly recommend that you get approval in principle before you do anything else. For example, even something as simple as a car loan costing €400 a month could reduce what you could borrow by €65,000.

If you are buying a property on your own:

Lenders usually calculate what you can borrow based on either:

  • a multiple of your yearly before tax income (e.g. 4.5 or 5 times your annual before tax income) or

  • your net disposable income (i.e. your income after tax).
    They'll usually allow 35% - 40% of your monthly net income (your pay after tax) to cover your mortgage AND all other loan repayments.

Examples of what you could qualify for based on your income if you have NO loans:

  • €30,000 - €209,811 maximum
  • €40,000 - €221,758 maximum
  • €50,000 - €275,000 maximum
  • €75,000 - €358,000 maximum
  • €100,000 - €475,000 maximum

The example above based on a single borower. Age 30 or younger, taking out a 40 year mortgage with an 8% deposit. No loan commitments. The calculation assumes that the customer qualifies for the maximum TRS & the property has at least 2 bedrooms, allowing for room rental to be taken into account.

If you are buying a property with a partner or friend:

For Joint applicants, lenders generally calculate what you qualify for based on your Net Disposable Incomes:

  • Usually 35% - 40% of your monthly net income (your pay after tax) to cover your mortgage AND any other loan repayments.
  • They usually calculate this based on a variable rate mortgage over a maximum of 35 
    years and it is stress tested to allow for increases in interest rates.
  • Existing loans and other outgoings will significantly reduce what you can borrow.
  • Overtime & bonuses will also be taken into account, usually to a much lesser degree

Examples of what you could qualify for based on your joint income:

  • €50,000 joint income - €303,757 maximum
  • €70,000 joint income - €385,000 maximum
  • €80,000 joint income - €453,000 maximum
  • €90,000 joint income - €500,000 maximum
  • €100,000 joint income - €550,000 maximum

The example above based on a married couple, both working & earning the same income. Ages 30 or younger, taking out a 40 year mortgage with an 8% deposit. They have no loans. The calculation assumes that the customer qualifies for the maximum TRS.