…Incomes around the average industrial wage are always difficult to fulfil the criteria,” says [Financial adviser Michael] Dowling.
Indeed, he ran an income of €37,000 for a single person through all the banks’ calculators and all he could come up with the amount they could borrow was bang smack in line with the Central Bankrules, of 3.5 times income.
This would give a total mortgage of just €129,500, or a purchase price of about €143,333.
While this would mean monthly repayments of about €530 a month, and would thus be affordable based on our would-be buyer’s net income of about €2,500 a month, it’s still unlikely to get our buyer very far in Dublin.
“If the loan amount is €129,500 then they’d need an exceptional deposit built up, or to get a gift, to buy in a Dublin context,” Dowling says.
It’s also important to remember that to qualify for just this amount, our applicant would also need to carry no further additional debt; a car loan or holiday loan would make that figure shrink even more