Income of €89,000 for Dublin first time buyers
The average household income of first-time buyers taking out a mortgage loan in Dublin this year was €89,000, according to a Central Bank report. And the average income of the first-time buyer outside Dublin was €68,450, according to the bank’s Household Credit Market Report.
It also shows that both mortgage and consumer loans advanced by Irish banks are among the most costly in Europe. At 2.9%, the average new loan to buy a home was the most costly after Greece, and at 10.3%, consumer loans were the fourth-highest compared with a group of European countries,
The Central Bank report also shows that 40% of first-time borrowers took out a loan in the first half of the year, with a maturity of between 31 to 35 years. It said that since 2015, loans of over 35 years have “generally” not been advanced by banks for either first-time and second-time buyers.
Fixed-rate mortgages with a maturity of a few years account for an increased share of all new mortgage lending in the early part of the year. However, fixed-rate mortgages extending to a period of several years — which are typical in some other northern European countries — appear to be rare, while people under 30 account for only 14% of all new home lending in the early part of 2019.
“Although Ireland’s share of longer fixed-term loans has increased in recent years, these shares remain low and are much smaller than those observed in countries such as Belgium, Germany and the Netherlands,” according to the report.
