About this calculator
The Central Bank’s mortgage measures are macroprudential rules — they bind the lender, not just you. The loan-to-income (LTI) limit is 4 times gross annual income for first-time buyers and 3.5 times for second and subsequent buyers, a split in place since January 2023. The loan-to-value (LTV) limit is 90% of the price for a principal home — both buyer types need the same 10% deposit — and 70% for buy-to-let. Your maximum loan is whichever test produces the smaller number, and on Irish prices it is usually the income test.
Lenders hold a flexibility allowance: up to 15% of the value of their first-time and second-buyer lending (10% for buy-to-let) can exceed the limits. That allowance is allocated by the bank, typically to strong applications, and it is exhausted early in the year at some lenders — it is a reason to ask, never a figure to budget on. Passing the Central Bank tests also does not guarantee an offer: lenders still stress-test your repayment at roughly 2 points above the rate and audit your spending.
How to use it
- Enter your gross annual income — both incomes for a joint application (the limits apply to the loan, not per person).
- Pick your buyer type: it sets both the income multiple and the LTV cap.
- Enter the target price: the LTV test is run against it, and the deposit shown is price minus the maximum loan.
- Compare the three rows in the table — the same income buys a different ceiling as a mover or an investor.
The formula
For a first-time buyer on €85,000 targeting a €400,000 home: the LTI test allows €340,000, the LTV test allows €360,000 — so the loan is capped at €340,000 and the deposit is €60,000 (15% of the price), not the 10% the LTV cap alone suggests. This is the arithmetic behind Ireland’s deposit gap: saving 10% is necessary but rarely sufficient, because the income multiple quietly raises the deposit on any home priced above about 4.4 times your income.
Worked example
A first-time buyer couple earning €85,000 between them, targeting a €400,000 home over 30 years at 4%: LTI cap €340,000, LTV cap €360,000, maximum mortgage €340,000, deposit €60,000, repayment €1,623 a month. As second buyers the same income caps the loan at €297,500 and the deposit jumps to €102,500. The Help to Buy refund and the First Home Scheme exist precisely to close the first-time buyer version of this gap — both have calculators in this section.
Sources: Central Bank of Ireland, Measures of the mortgage framework (mortgage measures framework review, limits in force since 1 January 2023, including the 15% / 10% lender flexibility allowances), current October 2026. Last updated: October 2026.
Frequently asked questions
Why 4 times income for first-time buyers but 3.5 for movers?
The Central Bank raised the first-time buyer multiple from 3.5 to 4 in January 2023 after its framework review, judging that first-time buyers carry lower risk and face the highest access costs, while second buyers can amplify the housing cycle by chaining equity. The LTV cap was harmonised at 90% for both at the same time — before 2023, movers needed a 20% deposit.
Can a bank lend me more than 4 times my income?
Sometimes. Lenders may allocate up to 15% of the value of their principal-home lending to loans above the LTI or LTV limits. In practice the allowance goes to applicants with strong, stable incomes and clean credit, and some lenders use much of it early in the year. Treat anything above the standard limit as a possible exception to ask about — never as the basis of a bidding strategy.
Does Help to Buy or the First Home Scheme change these limits?
They change the deposit side, not the borrowing side. Help to Buy refunds tax towards your deposit on a new home; the First Home Scheme takes an equity share so the mortgage itself can be smaller. The LTI and LTV caps still apply to the mortgage you take — in fact the First Home Scheme requires you to borrow the maximum a participating lender will offer under them.
Is the LTI limit based on gross or net income?
Gross — your income before tax, from your salary cert and P60-equivalent (Employment Detail Summary). Lenders verify it against payslips and bank statements, and most will only count a portion of variable income such as overtime, commission and bonuses, typically averaged over two to three years.
What stress test do Irish lenders apply on top?
Separately from the Central Bank caps, lenders test affordability at a stressed rate — commonly around 2 percentage points above the loan rate — and examine six months of bank statements for rent, savings discipline and existing debts. A car loan or large credit-card balance reduces what they will offer even if the LTI arithmetic has room.
What formula does this ireland mortgage affordability calculator — lti & ltv limits calculator use?
Max loan = min(income × LTI multiple, price × LTV cap); deposit = price − max loan For a first-time buyer on €85,000 targeting a €400,000 home: the LTI test allows €340,000, the LTV test allows €360,000 — so the loan is capped at €340,000 and the deposit is €60,000 (15% of the price), not the 10% the LTV cap alone suggests. This is the arithmetic behind Ireland’s deposit gap: saving 10% is necessary but rarely sufficient, because the income multiple quietly raises the deposit on any home priced above about 4.4 times your income. The worked example on this page applies the formula step by step with real numbers, so you can verify the result by hand.