First time buyers will be permitted to borrow four times their gross income from January.
The Central Bank has announced that it will increase from three-and-a-half times their salary currently.
The Central Bank has loosened its lending rules
🏡First time buyer can now get a mortgage worth 4 times their gross income
🏡Second time buyers now need a 10% deposit to get a mortgage - down from 20%
🏡 First time buyers now include divorcees and those who've been bankrupt
— Mairéad Cleary (@maireadcleary7) October 19, 2022
It would be a welcome change to many who are trying to purchase a home with affordability being a real barrier.
Under changes to lending rules, second-time buyers will now need just a 10% deposit when purchasing a property, down from the previous rule of 20%.
The changes have been met with some concern that house prices may increase further.
But Minister Michael McGrath says something had to be done to meet continuous inflationary costs.
"We have had significant construction inflation and materials inflation over the last year or so.
"It has been really high, and we're not in an environment where interest rates are rising as well.
"All of these will be factors in determining the ability of people to purchase a home.
"I believe this is a sensible move by the Central Bank acting independently from the Government and one I support."