Quick answer
- First-time buyers have a standard LTI limit of 4 times gross income.
- Second and subsequent buyers have a standard LTI limit of 3.5 times gross income.
- The limits apply alongside LTV deposit rules and lender affordability assessment.
- A lender allowance is discretionary capacity in its loan book, not a personal entitlement.
On this page
The Irish loan-to-income rule
Loan-to-income, or LTI, compares the mortgage with gross annual income. Under the Central Bank mortgage measures, the standard maximum is 4 times gross income for first-time buyers and 3.5 times for second or subsequent buyers. A €70,000 first-time-buyer income therefore gives a €280,000 standard LTI ceiling; the same income gives €245,000 for a second buyer.
LTI is only one gate. The application must also meet the loan-to-value limit, lender credit policy and a detailed ability-to-repay assessment.
How joint and variable income enters the calculation
Joint applicants normally begin with combined qualifying gross income. The important word is qualifying: a lender may treat base salary, overtime, commission, bonuses, contract income, rental income or recent pay increases differently. Evidence, regularity and likelihood of continuation matter.
Do not apply the multiple to every payment visible on a payslip. Ask the lender which income is accepted and whether a multi-year average or reduced percentage is used.
What a mortgage allowance really means
The Central Bank permits up to 15% of the value of first-time-buyer lending and 15% of second/subsequent-buyer lending to take place above the standard limits. For buy-to-let lending, up to 10% may be above the applicable limit.
This does not create a fixed personal multiple such as 4.5× or 5×. Each lender decides how to allocate limited allowance capacity and can apply stricter rules. Build the core budget on the standard limit and treat any higher approval as unconfirmed until issued.
LTI ceiling versus lender affordability
| Test | Question answered | Can reduce borrowing? |
|---|---|---|
| LTI | How large is the mortgage relative to gross income? | Yes |
| LTV | How large is the mortgage relative to property value? | Yes |
| Affordability | Can the household sustain repayments and commitments? | Yes |
| Credit/property checks | Are borrower history and security acceptable? | Yes |
Passing one test does not override another. Use salary examples on the mortgage-by-salary page and the calculator for the combined planning view.
Common income-multiple mistakes
- Treating the limit as guaranteed approval.
- Adding the deposit to the mortgage instead of to the property budget.
- Assuming all bonus or overtime income is accepted in full.
- Using first-time-buyer status when one joint applicant changes the classification.
- Planning around an exception before a lender grants it.
- Ignoring repayments on other debts and the maximum affordable term.
Frequently asked questions
What is the mortgage salary multiplier in Ireland?
The standard LTI limit is 4 times gross income for first-time buyers and 3.5 times for second or subsequent buyers.
Is 4 times salary guaranteed for a first-time buyer?
No. It is a maximum planning limit; a lender can approve less after affordability and credit assessment.
Can a bank offer more than the income limit?
A limited share of lending can be above the measures, but allocation is discretionary and lender-specific.
Is net income used for the mortgage multiple?
LTI uses gross annual income. Net income and household spending are important in the separate affordability assessment.
Do joint applicants multiply both salaries?
They generally begin with combined qualifying gross income, but the lender decides which income sources and amounts are sustainable.
Does a larger deposit change the income multiple?
No. It helps the LTV and property budget, but it does not automatically increase the LTI ceiling.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.