Irish Central Bank to Ease Bridging Finance Limits to Support Downsizing for Older Homeowners

Ireland's Central Bank to ease loan-to-income limits for bridging finance. Discover how these new mortgage rules support rightsizing for older homeowners.

By: AXL Media

Published: Apr 8, 2026, 6:01 AM EDT

Source: Information for this report was sourced from RTÉ

A Strategic Shift in Irish Mortgage Lending Policy

The Irish mortgage landscape is set for a significant regulatory adjustment as the Central Bank prepares to implement new rules in the coming weeks. According to official government communications, these reforms are specifically targeted at homeowners looking to rightsize their living situations by moving into smaller, more manageable properties. The shift represents a pivot toward more flexible credit assessments for existing owners, moving away from the rigid frameworks that have defined the market in recent years.

Removing the Barriers to Bridging Finance

At the core of this policy update is the restructuring of bridging finance, which allows individuals to secure a new home before finalizing the sale of their current residence. Under the expected revisions, certain bridging products will be granted an exemption from strict loan-to-income limits. These limits currently cap borrowing at four times gross income for first-time buyers and three and a half times for those returning to the market. By lifting these caps for specific transitionary loans, the regulator aims to provide a smoother financial path for those with significant equity but lower active income.

Ministerial Support for Housing Choice Initiatives

Tánaiste and Minister for Finance Simon Harris has formally signaled his support for these measures in a letter to Central Bank Governor Gabriel Makhlouf. According to Harris, the initiative is a sensible and pragmatic approach to broadening housing options, particularly for the elderly. The government views this as a vital step in their broader housing strategy, emphasizing that supporting voluntary rightsizing is essential for optimizing the national housing stock.