Quick answer
- Affordability estimates a possible borrowing range; repayment estimates the monthly cost of a known loan.
- An affordability result is a planning estimate, not mortgage approval.
- Use affordability first when setting a budget, then use repayment for shortlisted loan amounts.
- Stress-test the result against higher rates and your full household budget.
On this page
Affordability is not the same as repayment
A repayment calculator answers one question: what might the monthly payment be for this mortgage amount, rate and term? An affordability calculator answers a different question: what mortgage size might be realistic before a lender reviews everything?
In Ireland, the starting point often includes Central Bank loan-to-income and loan-to-value limits. But those limits are not a promise. Lenders also assess income stability, spending, loans, credit cards, dependants, childcare, savings record, age, property type and their own credit policy.
Use the Mortgage Affordability Calculator before house hunting, then use the Mortgage Calculator once you have a realistic price, deposit and rate.
The two ceilings most buyers should compare
| Ceiling | What it checks | Simple example |
|---|---|---|
| Loan-to-income | Mortgage amount compared with gross annual income. | A first-time buyer household on €80,000 has a 4× income guide of €320,000 before lender assessment. |
| Loan-to-value | Mortgage amount compared with property value. | With a €40,000 deposit and a 90% LTV structure, the matching property price is around €400,000. |
| Lender affordability | Whether repayments remain sustainable after outgoings and stress checks. | Two applicants with the same income can receive different outcomes if loans, childcare or credit history differ. |
A realistic buyer scenario
A single first-time buyer earns €62,000 and has €42,000 saved. A simple income guide gives €248,000 as a 4× income mortgage ceiling. With a 90% LTV structure, the deposit could support a property price up to about €420,000, but the income ceiling is lower.
In that scenario, the income limit is likely the tighter starting point. A €248,000 mortgage plus a €42,000 deposit suggests a purchase budget around €290,000 before buyer costs. That buyer still needs to keep cash aside for Stamp Duty, legal fees, valuation, survey, insurance and moving costs.
What lenders may look at after the calculator
- Stable income, probation status, overtime, bonus and variable pay treatment.
- Six months or more of bank behaviour, savings pattern and account conduct.
- Existing loans, credit cards, buy now pay later, childcare and dependants.
- Credit history, missed payments, overdrafts and gambling or high-risk spending patterns.
- Property type, valuation, location, planning status and insurance considerations.
This is why two buyers with the same income and deposit can receive different mortgage outcomes.
Where schemes fit into affordability
Help to Buy can help eligible first-time buyers with the deposit on qualifying new homes or self-builds, subject to Revenue rules. The First Home Scheme can help bridge a funding gap for eligible buyers and qualifying properties, but it is a shared-equity arrangement and has price ceilings, participating lender requirements and service charge rules.
Do not add scheme support to your budget until you have checked the specific conditions. Start with the Help to Buy Calculator, the First Home Scheme Calculator and the deposit and LTV guide.
Frequently asked questions
How much can I borrow for a mortgage in Ireland?
As a planning guide, first-time buyers are generally limited to 4 times gross income and second/subsequent buyers to 3.5 times gross income, subject to deposit, LTV, lender assessment and limited allowances.
Can a lender offer less than the calculator shows?
Yes. A lender can apply stricter affordability checks based on spending, debts, dependants, credit history, employment and repayment capacity.
Does deposit affect affordability?
Yes. Deposit affects the loan-to-value side of the calculation and may decide whether the property price is realistic.
Does Help to Buy increase what I can borrow?
Help to Buy can help eligible buyers with deposit funds for qualifying new homes, but it does not remove lender affordability assessment.
Is affordability based on gross or net income?
Central Bank LTI limits use gross income, but lenders also look at net income and outgoings when assessing repayment capacity.
Should I use the highest number the calculator shows?
No. Treat it as a ceiling for planning, then test monthly repayments and keep a buffer for buying costs and normal life expenses.
Sources & references
- Central Bank of Ireland: mortgage measures
- CCPC: mortgage monthly repayment estimator
- CCPC: mortgage overpayment calculator
- CCPC: paying extra off your mortgage
- Central Bank of Ireland: mortgage switching
- CCPC: applying for a mortgage
- CCPC: first-time buyer guide
- Citizens Information: taking out a mortgage
- Revenue: Help to Buy Scheme
- Revenue: Help to Buy amount
- Revenue: residential Stamp Duty rates
- First Home Scheme: eligibility
- First Home Scheme: property price ceilings
- Bank of Ireland: mortgage documentation checklist
- AIB: mortgage approval in principle guidance
Related calculators
Use these tools for the numbers behind this guide.