Central Bank Mortgage Rules 2026: The Complete Guide
The Central Bank of Ireland sets the maximum you can borrow and the minimum deposit you need. These rules affect every single mortgage application in the country. Here's everything you need to know for 2026.
In This Guide
Rule 1: The Loan-to-Income (LTI) Limit
This is the rule that caps how much you can borrow relative to your income. It's the binding constraint for most buyers.
| Buyer Type | Maximum LTI | What It Means |
|---|---|---|
| First-time buyer | 4.0× gross income | Earning €60k max mortgage €240k |
| Second-time / subsequent buyer | 3.5× gross income | Earning €60k max mortgage €210k |
"Gross income" means your total annual salary before tax and deductions. For couples, it's the combined figure. If you earn €45,000 and your partner earns €35,000, your combined gross is €80,000 and your maximum mortgage as first-time buyers is €320,000.
Rule 2: The Loan-to-Value (LTV) / Deposit Requirement
| Buyer Type | Maximum LTV | Minimum Deposit |
|---|---|---|
| First-time buyer | 90% | 10% of property price |
| Second-time buyer | 90% | 10% of property price |
| Buy-to-let / investment | 70% | 30% of property price |
For a €350,000 property, a first-time buyer needs at least €35,000 in deposit. This can include your own savings, Help to Buy refund, gifts from family (with proper documentation), and credit union savings.
The Exception Rules — Can You Borrow More?
Yes, but don't count on it. Banks are allowed to exceed the standard limits on a percentage of their lending:
LTI Exceptions
- First-time buyers: Up to 20% of new FTB lending can exceed 4× income, to a maximum of 4.75×.
- Second-time buyers: Up to 10% of new lending can exceed 3.5× income, to a maximum of 4.5×.
LTV Exceptions
- Up to 15% of new lending can exceed the standard LTV limits (i.e., offer less than 10% deposit mortgages).
In practice, exceptions are granted to borrowers with strong financial profiles: high savings history, clean credit record, stable employment, and low existing debt. Don't plan your purchase price around getting an exception — it's at the lender's sole discretion and the exception pool is limited.
Worked Examples at Every Income Level
| Gross Income | Max Mortgage (FTB 4×) | Deposit Needed (10%) | Max Property Price |
|---|---|---|---|
| €40,000 | €160,000 | €17,778 | €177,778 |
| €50,000 | €200,000 | €22,222 | €222,222 |
| €60,000 | €240,000 | €26,667 | €266,667 |
| €70,000 | €280,000 | €31,111 | €311,111 |
| €80,000 | €320,000 | €35,556 | €355,556 |
| €90,000 | €360,000 | €40,000 | €400,000 |
| €100,000 | €400,000 | €44,444 | €444,444 |
| €120,000 | €480,000 | €53,333 | €533,333 |
The Fresh Start Principle
If you've previously owned a home but no longer have an interest in it — due to divorce, separation, personal insolvency, or bankruptcy — you may qualify as a first-time buyer under the "Fresh Start" principle. This means you get the higher 4× LTI limit instead of 3.5×.
The key requirement: you must have no beneficial interest in any residential property at the time of your new mortgage application. Your previous property must have been fully divested (sold, transferred, or surrendered). Ask your lender or broker specifically about Fresh Start eligibility — not all buyers know it exists.
Rules for Mortgage Switchers
If you're switching your existing mortgage to a new lender (same property, same balance, just a better rate), the Central Bank lending rules do not apply. You don't need to pass the 3.5× or 4× test again. This is one of the reasons mortgage switching is so accessible — there's no Central Bank hurdle, just the new lender's credit assessment.
However, if you're switching and also increasing the mortgage amount (a "top-up"), the additional borrowing does fall under the rules.
Calculate Your Maximum Borrowing
The Central Bank rules set the ceiling, but the exact amount you can borrow depends on your income, deposit, existing debts, and spending patterns. Use our tools to get your personalised numbers:
- Affordability Calculator — Your maximum borrowing based on income and deposit
- Help to Buy Calculator — How much tax refund you can add to your deposit
- First Home Scheme Calculator — The equity share that bridges the gap
- Mortgage Comparison — Compare every lender's rates side by side
- Total Cost of Buying — Every fee beyond the property price