Ciara Calder (QFA)

Let’s be real — life doesn’t stop when you start thinking about buying a home. Nights out, holidays, the odd splurge in Penneys (everyone loves a good deal!). They all still matter and the key is finding out what you can afford while keeping the lifestyle that makes you, you.

Now, here’s the thing. It’s never too early (or too late) to start your mortgage plan. Even if your goal is to buy in 2027, getting “mortgage ready” today sets you up to move fast when the time comes. Think of it as future-proofing your dream home.

So, what can you actually borrow?

For first-time buyers, most lenders will typically allow you to borrow up to four times your income. This usually includes your basic guaranteed salary, and sometimes part of your variable pay — like bonuses, commission, or overtime. A few lenders even stretch to 4.5 times your income under certain circumstances.

But before getting too excited, pause on one question: can you really afford it?

Getting clear on what you can borrow is only half the story. The other half is knowing what you are genuinely comfortable repaying every month without feeling squeezed.

The magic metric: Proven Repayment Ability (PRA)

It all comes down to a simple but powerful concept — Proven Repayment Ability, or PRA.

Let’s say you’re paying €1,000 per month in rent and saving another €1,000 monthly. That’s a total of €2,000 going out consistently — excellent PRA. If your projected mortgage repayment is €1,708 a month, you’re in good shape on paper.

But here’s where it gets tricky. If you’ve been dipping into those savings every month, your bank sees a different story. Maybe you’ve only actually saved €200 on average per month — meaning your real PRA is €1,200, or just about 70.3% of the expected monthly repayment.

Most banks want to see at least 85% proven repayment ability (€1,460 in this example), though some lenders can stretch below that in certain cases.

The ideal amount for your peace of mind is 100% or more so that you have also accounted for the additional insurances you need to have in place when drawing down the mortgage – home insurance and mortgage protection insurance which we recommend that you allow for 10% of the monthly mortgage amount to cover these.

The smarter move

While we do have some lenders who are willing to lend outside the benchmark of 85%, the best approach is to build as much PRA as you can, not just for loan approval, but for your own peace of mind. A strong PRA means you’ll not only qualify for your mortgage but also manage it comfortably without sacrificing life’s small joys.

Ready to get your plan in motion?

If you’d like help working out your borrowing power, PRA, and a realistic plan that lets you keep enjoying your life, I’m here and ready to talk. Book a chat with me today and start getting mortgage ready on your terms.