Buying your own apartment or house is one of the most important dreams for many people living in Ireland. However, for many—especially those earning the national average salary—the road to securing a mortgage is exceptionally difficult. Why is that the case? Let’s take a closer look at several key reasons:

1. High Property Prices

The Irish property market has been facing rising prices for years, particularly in major cities such as Dublin, Cork, and Galway. The average price of a home in Dublin can reach between €400,000 and €700,000, while the average gross salary is around €45,000 to €50,000 per year. This means that a person with an average income faces a huge challenge in trying to secure enough funds to buy a house or apartment.

2. Mortgage Lending Restrictions (Central Bank Regulations)

The Central Bank of Ireland has imposed limits on mortgage lending to protect the market from excessive household debt:

• The maximum loan amount is typically 4 times the gross annual income.
• A minimum deposit of 10% is required for first-time buyers, and 20% for second-time buyers.

For someone earning €50,000 annually, this means the maximum mortgage is €200,000 — an amount insufficient to buy property in many parts of Ireland.

3. High Cost of Living and Difficulty Saving

High costs of rent, energy, transport, and food make it difficult even for higher earners to save for a deposit. After covering everyday expenses, there’s often little left to set aside.

4. Creditworthiness Assessment

Banks meticulously assess credit history, job stability, and monthly liabilities. Even small debts (e.g., credit card balances or car loans) can lower one’s credit capacity and impact the mortgage approval decision.

5. Fierce Competition on the Property Market

Demand significantly exceeds supply. There are more buyers than available properties, which often leads to homes selling well above the asking price.Those with limited budgets frequently struggle to compete with investors or buyers who have higher equity or greater borrowing capacity. Cheapest Counties in Ireland for Propert. The most affordable counties in Ireland in terms of property prices include Leitrim, making it an attractive option compared to the rest of the country. Other inexpensive counties include Longford, Donegal, Roscommon, and Sligo. However, it’s worth noting that even these regions have seen significant property price increases of 9–17%.

How Can You Help Yourself?

Although the situation is challenging, there are a few steps that can help:

• Irish government schemes, such as the First Home Scheme and Help to Buy, offer support to first-time buyers in Ireland.
• It’s advisable to save regularly and avoid unnecessary debt.
• If possible, consider buying outside major cities, in counties where property prices are lower.
• You can read more about how to prepare for a mortgage application in another article on our website https://www.ubezpieczenianazycie.ie/polski/jak-uzyskac-kredyt-hipoteczny-w-irlandiiprzygotowanie-i-wskazowki/

Securing a mortgage in Ireland on an average income is difficult—but not impossible. The biggest obstacles are high property prices, lending regulations, cost of living, and limited borrowing capacity. However, with good preparation and use of available support schemes, the dream of owning your own home can come true—even if the road is a bumpy one.