That your income less expenditure still leaves enough each month to meet the proposed mortgage repayments. We look at your Nett (after tax) income each month and see what your outgoings are, and we can then assess how much of a mortgage you could afford to repay each month. Any rent that you are paying or savings that you have each month, will count towards this repayment capacity. Most first time buyers believe that paying high rent can count against you – but for repayment capacity, its actually beneficial.
Gross Income is 4x the mortgage amount
With the first time buyer scheme, your income (combined if applying with a partner) must be 4x the mortgage amount. Say for example you have two applicants, both earning €50k (combined €100k per year) – this would enable you to get a mortgage of €400k. The value of the property will need to be at least €440k to satisfy the additional first time buyer deposit requirements. Which we outline below.