Loan-to-income (LTI)
The Central Bank cap on a home loan as a multiple of gross income: 4 times for first-time buyers and 3.5 times for second and subsequent buyers.
What it means
Loan-to-income is the mortgage amount divided by your gross yearly income. Joint applicants' incomes are added together. The Central Bank mortgage measures, in their current form since 1 January 2023, cap it at 4 for first-time buyers and 3.5 for second and subsequent buyers.
Each lender can go above the limits on up to 15% of its first-time buyer lending and 15% of its second and subsequent buyer lending, known as exemptions. Lenders ration them through the year, so plan around the standard limit.
These limits are for buyers of a home to live in. Buy-to-let loans fall under separate rules, including a 30% minimum deposit.
Formula
Example
On €80,000 of combined income, a first-time buyer can borrow up to €320,000 and a second-time buyer up to €280,000.