Is there a minimum salary you need for a mortgage?

henke

Hi,

I am wondering is there a minimum salary you need to be on to be eligible for a mortgage? Not a huge 100k max maybe only 80 or 90. Saving a couple 100 last few months on top of my monthly rent. Just wondering is there a min gross salary or is that something they would look at?

Thanks.

Michael D Not Higgins

A rule of thumb is about 3 times your salary is the affordable mortgage. Of course with the way things have been recently, banks stress test your application based on certain variables, especially things like changes in interest rates or if you suddenly have a child. For 90k mortgage, you'd then have to earn 30k.

ec18

Sorry to piggyback on this but is there a guideline for the % of the house value that the deposit should make up. (10% is in my head for some reason)

dar100

ec18 wrote: »

Sorry to piggyback on this but is there a guideline for the % of the house value that the deposit should make up. (10% is in my head for some reason)

generally 10%, but AIB do 8%

Michael D Not Higgins

Keep in mind, a larger deposit can get you a better deal on the interest rate with some banks.

ec18

dar100 wrote: »

generally 10%, but AIB do 8%

Michael D Not Higgins wrote: »

Keep in mind, a larger deposit can get you a better deal on the interest rate with some banks.

Thanks.....so really 10% is a minimum figure that a borrower should be aiming for

Michael D Not Higgins

ec18 wrote: »

Thanks.....so really 10% is a minimum figure that a borrower should be aiming for

Yes, I'd aim for higher if possible, but that's just me and it depends on the individual circumstances.