How much can you borrow?
The normal maximum borrowing level is 3.5 times your annual gross salary. Facilities of up to 4.5 times income are available on an exception basis.
Borrowing more than 3.5 times gross income?
In our experience over 90% of applicants borrow at or below the 3.5 times income category.
This 3.5 times limit can be exceeded in certain circumstances. These exceptions tend to be given to applicants with higher income levels where additional repayment capacity is clearly evident,
As a rough guide exemptions are granted when income levels are higher as follows.
Single applicant Income > €50,000
Joint Applicants Income > €70,000
Each exception application is assessed on its own merits.
Can the minimum deposit rules be exceeded?
Central bank deposit rules require a 10% deposit for first time buyers.
With the new help to buy scheme for first time buyers of new houses, a tax rebate of 5% ( subject to an upper limit of €20,000 ) of the purchase price is potentially available on properties costing €500,000 or less.
First time buyers of second hand houses will need to fund the 10% deposit themselves.
A 20% deposit is required for second time buyers
Exemptions to these rules are available for certain applicants, thus facilitating a lower deposit requirement,
The most likely area for exemptions will be for trader up applications where facilities in excess of 80% will be considered.
Once again, exemptions are more likely to be available to individuals with higher levels of income where additional repayment capacity is clearly evident.
Each lender will offer a different borrowing level!