Income cap for the state mortgage guarantee for under-35s to rise to €89,995 in 2027, if the guarantee is extended
In 2027, home buyers aged 35 and under will be able to get a state guarantee on their mortgage with an income of up to €89,995 a year; the current cap is €86,634. The figure comes from the draft budget: the cap is tied to the upper limit of the eighth band of the IRS (income tax) scale, and the bands will rise by 3.88% in 2027.
At present the guarantee only covers loans signed by 31 December 2026. The government has not yet decided whether to extend it into 2027, so the new income cap will only matter if the guarantee is extended.
The guarantee is for people aged 18 to 35 who are buying their first home to live in. The flat or house must cost no more than €450,000. The state guarantees part of the loan, so the bank can lend up to 100% of the price, with no deposit needed. The guarantee covers the first ten years of the loan. The cap applies to annual taxable income, not gross salary.
