Mortgage calculator
Central Bank of Ireland rules apply limits to the amount that lenders in the Irish market can lend to mortgage applicants. These limits apply to loan-to-income (LTI) ratios and loan-to-value (LTV) ratios for both primary residences and rental properties, and are in addition to lenders' individual credit policies and terms. For example, a lender may have a limit on the percentage of your take-home pay that can be used to pay your mortgage.
A limit of 3,5 times your annual gross income applies to applications for a mortgage on a primary home. This limit also applies to people with negative net worth who apply for a mortgage for a new home, but not those who apply for a loan to purchase a rental home.
Lenders have some discretion when it comes to mortgage applications. For first-time buyers, 20% of the value of mortgages approved by a lender may be above this limit, and for second and subsequent buyers, 10% of the value of those mortgages may be below this limit. above this limit.
What is the mortgage payment
The amount you can borrow really depends on how much you can comfortably pay in monthly installments over the life of your mortgage, which can be up to 35 years for homeowners, depending on your age.
When we assess how much you can borrow, we look at the details of your overall financial situation, including income, expenses, savings and other loan repayments. Next, we calculate the monthly mortgage amount you can afford. Chances are you've done this exercise yourself and have a figure in mind that seems manageable.
Mortgage calculation formula in Excel
In the "Down Payment" section, write the amount of your down payment (if you're buying) or the amount of equity you have (if you're refinancing). Down payment is the money you pay up front for a home, and home equity is the value of the home, minus what you owe. You can enter a dollar amount or the percentage of the purchase price that you are going to give up.
Your monthly interest rate Lenders give you an annual rate, so you'll need to divide that number by 12 (the number of months in a year) to get the monthly rate. If the interest rate is 5%, the monthly rate will be 0,004167 (0,05/12=0,004167).
Number of payments over the life of the loan Multiply the number of years in your loan term by 12 (the number of months in a year) to get the number of payments on your loan. For example, a 30-year fixed mortgage would have 360 payments (30×12=360).
This formula can help you crunch the numbers to see how much you can afford to pay for your home. Using our mortgage calculator can make your job easier and help you decide if you are putting enough down money or if you can or should adjust the term of your loan. It's always a good idea to compare interest rates with multiple lenders to make sure you're getting the best deal available.
Bankrate Calculator
Enter your information into the calculator to estimate the maximum mortgage you can borrow. After completing the calculation, you can transfer the results to our mortgage comparison calculator, where you can compare all the latest mortgage types.
These limits have been set by the Central Bank of Ireland as part of the macroprudential regulations. The rationale for these rules is to ensure that consumers are prudent when borrowing, that lenders are cautious when granting loans, and also to help control home price inflation.
Central Bank deposit rules require a 10% deposit for first time buyers. With the new purchase assistance plan for buyers of new homes, apartments and self-constructions, you can obtain a tax reduction of 10% (with a maximum limit of 30.000 euros) of the purchase price for properties that cost 500.000 euros or less.
