Mortgage Approval in Principle - All you need to know

If you’re starting your home buying journey, you’ve likely come across the term Mortgage Approval in Principle. It can sound technical, but it’s actually a great first step that makes things clear before you begin viewing homes.

In short, Mortgage Approval in Principle is an initial indication from a lender of how much you may be able to borrow, based on your income, expenses and financial circumstances. It is not a formal mortgage offer, but it can help you understand your budget before viewing homes.

In this guide, we’ll explain what Approval in Principle means, how long mortgage approval can take and how long it will last, what to do once you have it, and more.

What is Mortgage Approval in Principle?

Mortgage Approval in Principle (also known as AIP) is a lender’s first view of how much you may be able to borrow. It’s based on key details like your income, expenses and financial history. While it’s not a formal loan offer, it gives you a price range so you can focus your search with confidence.

For many first-time buyers, this is where things start to feel real. You move from “just looking” to knowing what could be possible.

How long does Mortgage Approval take?

One of the most common questions buyers ask is “how long does mortgage approval take?”. Mortgage Approval in Principle is usually the fastest part of the process. In many cases, it can be done in a short timeframe once you provide the required information.

At Avant Money, once we receive your completed application, we aim to get back to you as soon as possible. We will acknowledge your application within 3 business days and will let you know of our decision within 10 business days.

However, it’s helpful to know that:

• The speed can vary depending on the lender
• Clear, correct information can help avoid any delay
• The full mortgage approval (later in the process) takes longer as it includes a property check and more detailed assessments
• Think of Approval in Principle as your starting point. This will set you up for the next steps but isn’t the final decision.

How long does Mortgage Approval in Principle last?

Typically, in Ireland, Mortgage Approval in Principle lasts between 6 and 12 months depending on the lender. If it expires before you find a property, you may need to provide updated financial information and reapply. With Avant Money, Approval in Principle generally lasts 12 months once approved.

What documents do I need for Mortgage Approval?

The documents needed for Mortgage Approval in Principle will vary depending on the type of mortgage you choose (such as a Switcher Mortgage or First-Time Buyer Mortgage) and your employment status (whether you’re employed or self-employed). Usually, you'll need to provide some of the following:

• Payslips to verify income
• Savings and current account statements
• Information on other loans or credit cards you might have
• Proof of Identification
• Proof of address

Find more information in our blog on the documents required for a mortgage.

How much Mortgage would I be approved for?

The amount of mortgage you can borrow will depend on a number of different factors. Lenders will check your affordability and ability to meet the monthly mortgage requirements by looking at your income and expenses. In Ireland, first-time buyers may be able to borrow up to 4 times their gross annual income, while second-time and subsequent buyers may be able to borrow up to 3.5 times their gross annual income, subject to lender criteria and affordability checks. This means if you earn €50,000 a year as first-time buyer, you could borrow a max of €200,000. The amount you can borrow will also depend on the loan to value (LTV). Most lenders will only allow you to borrow 90% of the home’s value. E.g if the home is worth €300,000, the max you could borrow is €270,000.

Use our Mortgage Calculator to see how much you could borrow.

Can I change job after mortgage approval

It may be possible to change jobs after mortgage approval, but it's generally best to avoid major employment changes until after your mortgage has been drawn down. A new job, probationary period or change in income could affect your lender's review and may lead to an additional check or delay. If you're considering changing jobs during the mortgage process, speak to your lender or mortgage advisor first.

Why Approval in Principle is helpful?

Getting Approval in Principle early on can make your home search simple and more focused. Here’s how it can help:

• Clarity on your budget - You’ll know what price range works for you
• Confidence when viewing homes - You can act quickly when you find something you like
• Stronger position with sellers - It shows you’re serious and prepared

It can also save time by helping you avoid looking at homes that may be outside your budget.

What to do after you get Approval in Principle

Once you have your Approval in Principle, you’re ready to move forward with more confidence.

1. Start viewing properties

   Focus on homes within your approved range. This helps you stay realistic and avoid setbacks later.

2. Keep your finances steady

   Try to avoid major changes like taking on new loans or missing payments. Lenders will review your situation again later in the process.

3. Prepare your documents

   When you’re ready to apply for full approval, you’ll need documents like payslips, bank statements and proof of deposit. You may also start to see more “mortgage jargon” at this stage, such as loan-to-value (LTV), interest rate and mortgage term. Getting familiar with these terms early can help you feel more confident as you move through the process. If you need some help with this, feel free to check out our top 10 mortgage terms that you should know.

4. Choose the right mortgage

   This is where you can look at different mortgage products and decide what suits your needs best. If you’re exploring your options, our One Mortgage is the only Mortgage in Ireland that offers a fixed interest rate for the entire term.* You also get 1% cashback when you draw down a new One Mortgage.** It’s important that you consider the overall cost of your mortgage before making a decision, as mortgages with cashback may come with higher interest rates.

A simple step that makes a big difference

Mortgage Approval in Principle is a straightforward step, but it can make a big difference to how confident and prepared you feel. It gives you a clear starting point, helps you understand your budget, and allows you to move forward with a plan.

If you’re just beginning your journey, taking this step early can help everything else fall into place more easily.

*One Mortgage unique/only claim and claim of competitive follow-on variable rates based on comparison against competitor mortgage products as advertised on their websites at 1st August 2026. One Mortgage is designed to give a fixed rate for the full mortgage term (between 5 and 30 years), whereas competitor Fixed Rate Mortgage products are designed to provide a fixed rate for a set number of years (between 1 and 10), following which they revert to a managed variable rate or a new fixed rate.

** Cashback is available on a New or Top-Up Mortgage drawn down between 1 January 2026 and 31 December 2026. For phased drawdown mortgages, the cashback amount will be calculated based on the initial mortgage drawdown amount.

Lending criteria and terms and conditions apply. The monthly repayment on a 20-year mortgage with Loan to Value (LTV) greater than 80% with variable borrowing rate of 3.95% on a mortgage of €100,000 is €603.35 for 240 months. Total amount repayable is €145,028.74. If interest rates increase by 1% an additional €53.85 would be payable per month. For this example, Annual Percentage Rate of Charge (APRC) of 4.0% applies and consists of variable borrowing rate of 3.95%, valuation fee of €185, and security release fee of €40.,

LTV is the amount borrowed as percentage of the value of your home. Information correct at 1st August 2026 and subject to change. You mortgage your home to secure the loan. Maximum loan is generally 3.5 times gross annual income (4.0 for first-time buyers) and 90% of the property value (80% for switchers). Applications from residents of ROI over the age of 18 only, and subject to repayment capacity, financial status and property valuation. We require property and life insurance.

Bankinter S.A. trading as Avant Money, is authorised by the Banco de Espana in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.