Key takeaway
How the Irish mortgage process works — from approval in principle to drawdown — and what lenders look for from newcomers.
The Irish mortgage market
The main mortgage lenders in Ireland are AIB, Bank of Ireland, Permanent TSB, Haven (AIB's broker brand), ICS Mortgages, and EBS. Credit unions also offer mortgages to members. It's worth using a mortgage broker — they have access to multiple lenders and can advise on which product suits your situation. Broker services are generally free (they're paid commission by the lender).
Central Bank lending rules (2023 update)
The Central Bank sets rules on how much banks can lend:
- Loan-to-Income (LTI) limit: first-time buyers can borrow up to 4x gross income; second and subsequent buyers up to 3.5x
- Loan-to-Value (LTV) limit: first-time buyers need a minimum 10% deposit; second and subsequent buyers need 20%
Example: on a combined income of €80,000, first-time buyers can borrow up to €320,000, needing a minimum €35,555 deposit for a €355,555 property.
What you need to apply
- 6 months' payslips and the most recent P60 (or Employment Detail Summary from Revenue)
- 6 months' bank statements (all accounts)
- Proof of identity and address
- If self-employed: 2–3 years' audited accounts and recent tax clearance certificate
- Details of any existing loans, credit cards, or financial commitments
Approval in principle (AIP)
AIP is a letter from a lender confirming, in principle, how much they'll lend you based on your income and circumstances. It's not a guarantee — full approval comes after a property is selected and a valuation is done — but it's essential before you start bidding. AIPs are typically valid for 6–12 months.
Fixed vs variable rates
Irish mortgages can be fixed (rate locked for 2–10 years) or variable (rate moves with the market). Fixed rates provide certainty on repayments; variable rates have historically been higher in Ireland but have come down. In a high-interest environment, shorter fixed terms (2–3 years) are popular. Compare rates on bonkers.ie or consult a broker.
Mortgage protection insurance
All Irish mortgage lenders require life insurance that pays off the outstanding mortgage if you die before it's repaid. Compare quotes independently — you're not required to take the bank's own policy. Premiums vary based on age, health, and mortgage amount.
General guidance only. Always verify with official sources — gov.ie, citizensinformation.ie, hse.ie.