Pension affecting Mortgage

[kelzer]

I pay into a PRSA Pension every month. Will this reduce the amount of mortgage I can get when I go to different lenders in terms of affordability?

 

[bobk]

it really depends how much of you net income you contirbuting.
If it a substantial portion, some banks may not give as much.

Generally though you should be fine.

 

[ClubMan]

You can stop/vary PRSA contributions at any time if making this contribution and eating into the net income available for mortgage repayments becomes a problem.

 

[kelzer]

So any bank will generally not look unfavourably on me if I cancel my pension contributions to increase my net income?

 

[pinkyBear]

Hi there, our broker was OK about us contrubiting max to our pensions - our take home pay being much less as a result - his reasoning was that we at any point could reduce what we pay to our pension and it is not a mandatory payment...

 

[ClubMan]

So any bank will generally not look unfavourably on me if I cancel my pension contributions to increase my net income?

No - they don't care other than about your ability to service the mortgage loan. Unless the pension is with them too but in that case it is probably a different section and the mortgage sales people won't care.