Getting a Mortgage in Ireland – How Much Can I Borrow ?

Mortgage lending in Ireland fell dramatically since the height of the property boom – but it seems to have picked up again in 2017

Lending criteria in 2017 are less strict for first time buyers than they were in 2016. This – combined with the new Help to Buy scheme might make it easier for more first time buyers get on the housing ladder. Hopefully it won’t just mean higher house prices.

The first question most people ask about mortgages is ...

How Much Can I Borrow ?

Lenders are governed by Central Bank Rules – see here – so in general it is 90% maximum for first time buyers and no more than 3.5 times the annual gross income.

Single Person Mortgage – How Much can I Borrow ?

These are typical figures for mortgage amounts allowed for a single earner who is a first time buyer. (Based on 3.5 times earnings)

Price possible with

The figures will be the same for joint applications.

On the BOI website they have a mortgage calculator where you can see how much you might be able to borrow.

In general terms – to be accepted for a mortgage offer you will need to be permanently employed in “sustainable employment”. Banks will only lend if they believe your employer will be around in 12 months’ time or more.

If you are self-employed – you will need to have been trading for a minimum of two years.

If you are in contract employment or temporary employment other than in the medical profession, it might be more difficult to secure a mortgage.

You will also need to have evidence of savings built up over a at least a 12-month period to show your ability to make the repayments. A big gift from a parent may not be enough.

If you are renting , banks will consider proof of paying rent as similar to saving.


How Much Mortgage Can I Afford (with a $1,200 Payment)

Before selling real estate for a living, I helped client's with mortgage loans and later helped homeowners find alternatives to avoid foreclosure. With my background in mind, I find it important to help you be prepared for the expenses of homeownership.

If you're planning to get mortgage, you'll need to ask yourself, how much mortgage can I afford?

In this post, I'll sharing helpful tips for you to figure out how much mortgage can you afford with a payment of $1,200.

How much mortgage can I afford (with a payment of $1,200)

I'll help you get started with these helpful resources.

How much mortgage can i get for 900 a month

To start, we’ll need to locate current mortgage market rates.

One place to find a great selection of current interest rates is bankrate.com. To see today's mortgage interest rates, check out Bankrate.com.

When planning how much mortgage you can afford, you may want to look at the term. is the mortgage term. A mortgage term is the period of time the borrower has agreed to pay back the mortgage lender.

A 30 year term or 15 year term is common, but other terms could be available.

If you purchased a 30-year fixed rate mortgage, at an annual interest rate at 3.85%, and a mortgage loan amount of $255,968, your monthly principle and interest payment would be $1,200 each month.

With some simple math, you can calculate monthly payments including interest.

However, there are still some factors to consider before you decide you can afford a mortgage payment of $1,200 with the example above.

You'll need to determine what your taxes and insurance payment is in addition to the principle and interest payment. When you pay a mortgage payment that includes principle, interest, taxes and insurance in one monthly payment, it is called a PITI payment.

With a PITI payment you have the ability to pay monthly installments on your annual or semi-annual property taxes and property insurance premium and your principle and interest mortgage payment.

Your loan to value ratio can play a big role in buying a home. If you do not have twenty percent to put down, or 80% loan to value, you may have mortgage insurance as in addition to your PITI payment.

Let’s assume that your monthly taxes, home insurance and mortgage insurance payment is $300 a month.

You'll need to reduce that amount from the $1,200 we used in our example. So you new monthly payment would be $900. Now, you need to find your new mortgage balance.

A payment of $900 would have a mortgage balance of $191,976. If you include your monthly taxes, insurance and mortgage insurance payment of $300 a month, you now have a payment of $1,200 a month.

If you are able to put a down payment to bring the loan to value below eighty percent, you could avoid paying mortgage insurance, which may allow you to increase the loan amount with a purchase.

You can visit bankrate.com to use their mortgage calculator to determine how much mortgage you can afford or for the best advice contact a local lender to discuss your mortgage options. There are many great mortgage programs available through different lenders.

Work with a Local Real Estate Agent! Connect to local resources

Working with a local real estate agent is a valuable asset when buying real estate. You could say, real estate agents are a conduit of information for buyers and sellers. Agents work closely with title companies, mortgage lenders, inspectors, appraisers, and so on.

If you're thinking about buying or selling, start by contacting a local agent. They can give you direction to get started, resources to find our how much mortgage you can afford, and get set up with listing alerts for the market you're interested in buying or selling.

To better understand how much mortgage you can afford it is best to contact a local lender or mortgage broker to discuss your options. The information I've provided in my blog article gives you a helpful starting point to begin your research for buying a home or condo. Your loan officer will be able to discuss your qualifications with your MTI and DTI.

Author's Note: This blog article was originally published in January 2015 by Michael Nolen on DelmarvaHomeRelief.com/Blog on Mortgage Related Topics and has been completely revamped for accuracy and comprehensiveness.

Michael brings a diverse background of mortgage, loan servicing and housing experience. Michael offers his clients a variety of helpful resources, guides and services that helps make buying and selling Salisbury, Ocean Pines and Ocean City, MD real estate delightful and educational.


4 Tips to Determine How Much Mortgage You Can Afford

Homeownership should make you feel safe and secure, and that includes financially. Be sure you can afford your home by calculating how much of a mortgage you can safely fit into your budget.

Why not just take out the biggest mortgage a lender says you can have? Because your lender bases that number on a formula that doesn’t consider your current and future financial and personal goals.

Think ahead to major life events and consider how those might influence your budget. Do you want to return to school for an advanced degree? Will a new child add day care to your monthly expenses? Does a relative plan to eventually live with you and contribute to the mortgage?

Consider those lifestyle issues as you check out these four methods for estimating the amount of mortgage you can afford.

The oldest rule of thumb says you can typically afford a home priced two to three times your gross income. So, if you earn $100,000, you can typically afford a home between $200,000 and $300,000.

But that’s not the best method because it doesn’t take into account your monthly expenses and debts. Those costs greatly influence how much you can afford. Let’s say you earn $100,000 a year but have $1,000 in monthly payments for student debt, car loans, and credit card minimum payments. You don’t have as much money to pay your mortgage as someone earning the same income with no debts.

Better option: Prepare a family budget that tallies your ongoing monthly bills for everything — credit cards, car and student loans, lunch at work, day care, date night, vacations, and savings.

See what’s left over to spend on homeownership costs, like your mortgage, property taxes, insurance, maintenance, utilities, and community association fees, if applicable.

How much money do you have for a downpayment? The higher your downpayment, the lower your monthly payments will be. If you put down at least 20% of the home’s cost, you may not have to get private mortgage insurance, which protects the lender if you default and costs hundreds each month. That leaves more money for your mortgage payment.

The lower your downpayment, the higher the loan amount you’ll need to qualify for and the higher your monthly mortgage payment.

But, if interest rates and/or home prices are rising and you wait to buy until you accumulate a bigger downpayment, you may end up paying more for your home.

Lenders generally follow the 43% rule. Your monthly mortgage payments covering your home loan principal, interest, taxes and insurance, plus all your other bills, like car loans, utilities, and credit cards, shouldn’t exceed 43% of your gross annual income.

Here’s an example of how the 43% calculation works for a homebuyer making $100,000 a year before taxes:

  1. Your gross annual income is $100,000.
  2. Multiply $100,000 by 43% to get $43,000 in annual income.
  3. Divide $43,000 by 12 months to convert the annual 43% limit into a monthly upper limit of $3,583.
  4. All your monthly bills including your potential mortgage can’t go above $3,583 per month.

You might find a lender willing to give you a mortgage with a payment that goes above the 43% line, but consider carefully before you take it. Evidence from studies of mortgage loans suggest that borrowers who go over the limit are more likely to run into trouble making monthly payments, the Consumer Financial Protection Bureau warns.

The tax benefits of homeownership generally allow you to afford a mortgage payment — including taxes and insurance — of about one-third more than your current rent payment without changing your lifestyle. So you can multiply your current rent by 1.33 to arrive at a rough estimate of a mortgage payment.

Here’s an example: If you currently pay $1,500 per month in rent, you should be able to comfortably afford a $2,000 monthly mortgage payment after factoring in the tax benefits of homeownership.

However, if you’re struggling to keep up with your rent, buy a home that will give you the same payment rather than going up to a higher monthly payment. You’ll have additional costs for homeownership that your landlord now covers, like property taxes and repairs. If there’s no room in your budget for those extras, you could become financially stressed.

Also consider whether or not you’ll itemize your deductions. If you take the standard deduction, you can’t also deduct mortgage interest payments. Talking to a tax adviser, or using a tax software program to do a “what if” tax return, can help you see your tax situation more clearly.

is an attorney and award-winning writer. A frequent contributor to publications including Bankrate, REALTOR Magazine, and the American Bar Association Journal, she specializes in real estate, personal finance, and legal topics.


Milo can afford a $900 monthly mortgage payment. If the current mortgage rates are 5% and he wants a 30-year mortgage, what is the maximum amount he can afford to borrow?

Thats confusing to me. Cause im in 4th grade

How much mortgage can i get for 900 a month

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