A new mortgage initiative by the Foundation for Affordable Housing and a local bank will allow middle-income earners to borrow more money when buying a home.  

The foundation was set up jointly by the government and the Church in 2022. In November it said it was preparing to launch new banking products to help people who do not qualify for government-funded apartments but also could not afford to buy a home. 

The new product, set to be formally announced on Wednesday, will offer a lower mortgage rate to individuals or couples who earn less than a specified amount. Prospective buyers will be able to borrow more money as they will be paying lower interest than market rates.   

an individual younger than 40 needs to earn at least €25,000 a year to get a home loan for an averagely-priced two-bedroom apartment of €225,000- study
 

A study by the foundation found that an individual younger than 40 needed to earn at least €25,000 a year to get a home loan for an average-priced two-bedroom apartment of €225,000.   

Another study by KPMG in November said property prices shot up by 40 per cent since 2017. In 2017, the average apartment cost around €200,000. In 2023, that increased to €280,000.

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