The Irish mortgage market is constantly changing. Over the last twelve months we have seen rate cuts, new products introduced and mortgage approvals rise to record levels.
Here are some thing you need to know as a home buyer in 2026 –
What will mortgage interest rates be like in 2026?
2025 was a year of rate cuts with the lowest rate on the market is now 3%.
There is an expectation that 2026 will bring a year of rate stability with lenders tweaking certain rates to align with competitors, rather than any major downward trend.
There is however a huge difference across interest rates which range from 3% but go right over 6%.
Fixed rates remain lower than variable rates and continue to be the preferred product for our clients with 3 – 5 year fixed rates proving very popular.
Green rates are available where you are purchasing a home with a building energy rating of A or B.
Some lenders also offer cashback offers of up to 2% of your mortgage back in cash, example a €400,000 mortgage, €8,000 cash to your current account paid 40 days post mortgage draw down.
With ten lenders offering fixed rates from one to 30 years, Green rates, Flex Mortgage products, cashback deals, and overpayment options, the market is more complex than ever.
That’s where doddl comes in, we work with all major lenders and we work for YOU to find the best mortgage option for your circumstances and our service is free to you.
Be aware – not all lenders will offer you the same mortgage amount
What mortgage amount can I borrow?
While all lenders operate under Central Bank rules, which cap lending at 4 times allowable income for first-time buyers and 3.5 times for all others, their interpretation of “allowable income” can mean that one lender can offer you significantly less than another.
If your income includes variable elements such as bonuses, overtime, commissions, or allowances, how much of this is considered varies across lenders—from 0pc to 90pc.
What is a mortgage exception?
Exceptions are available to allow you to borrow more than the Central Bank capped levels. For first time buyers this means you can potentially borrow up to 4.75 times allowable income (from 4 times standard) or 4.5 times for a second time buyer (from 3.5 times standard).
At doddl we work with all major lenders and understand what each will offer you plus we have access to exceptions for both first time buyers and second and subsequent buyers.
Government supports are available, but limited
While government schemes like the Help to Buy, First Home, and Local Authority Affordable Purchase schemes provide valuable support, they are limited to new-build homes only.
Here’s a breakdown of the key schemes:
- Help to Buy: Offers up to €30,000 (or 10% of the purchase price) as a tax rebate for new-build homes, which can be used as part of your deposit.
- First Home Scheme: Bridges the gap between your mortgage and deposit and the purchase price, offering up to 30% of the property’s value (20% if combined with Help to Buy). This equity stake is repayable on sale of the home, on death, if the home is no longer a principle private residence or you move to a lender outside of the scheme’s participating lenders. You can choose to repay the amount and reduce or clear the equity stake at any time.
- Local Authority Affordable Purchase Scheme: Provides discounted new homes for moderate-income buyers, with the local authority retaining an equity stake proportionate to the discount.
For second-hand homes, you can look to use mortgage approval to fund the cost of purchase and refurbishment of a home provided the works add requisite value.
Purchasing Power – here’s an example
Income €84,000, Deposit €40,000
Mortgage eligibility under standard lending rules 4 times income = €336,000
With an exception you can potentially go to €399,000.
Purchasing power –
- Second hand home = €400,000
Restricted by deposit as you must have a 10% deposit. Purchase price €400,000, deposit €40,000 would mean mortgage is €360,000.
- New build home using the Help to Buy = €470,000
You can use a mortgage exception with the HTB so €399,000 mortgage + €30,000 help to buy if eligible for full rebate + savings €40,000.
- New Build using the help to buy and first home schemes = €480,000
Exception cannot be used with the first home scheme so mortgage €336,000 + €40,000 deposit + €30,000 help to buy +€74,00 from the first home scheme.
If you go under 70% loan to value you cannot use the help to buy so max purchase price is €480,000 (€366/480k).
Price ceilings exist for the first home scheme depending on location and property type.
The schemes and how they can work for you might be confusing – our team can help! We can set out all your options and help you understand what your upper level purchasing power is.
Don’t forget transaction costs –
A 10pc deposit is required for all purchasers but on top of this you need to budget for other transaction costs required to complete out on the purchase.
The main costs are stamp duty which is 1pc for purchase prices up to €1m home value and rachets up for sums above this level. You will also need to budget for legal fees approx. €3,000, local property tax and management fees if applicable.
We would always note with clients that budgeting 12pc of the purchase price for deposit and transaction costs is wise.
Navigating 2026: knowledge is power
The journey to home ownership in 2026 remains challenging, but being well-informed can make a big difference.
Our team helped thousands of people become homeowners last year – you don’t need to know everything about mortgages because we do and we can help you!
Contact our team today, provide some initial information, we will immediately revert with mortgage levels and figures and our team can work to get you approval in principle within 24 hours.
Home Purchasers – Start Here!
