Mortgage Measures Framework Review

The Central Bank of Ireland’s mortgage measures are a permanent feature of the Irish mortgage and housing market. They support good lending practices, preventing the widespread financial difficulties that we saw over a decade ago due to unaffordable and unsustainable debt levels.

The objectives of our mortgage measures are to:

  1. Ensure that banks and borrowers are resilient to adverse events
  2. Reduce the risk of another credit-fuelled house price boom.

These rules have direct and tangible effects on people. So, every year, we conduct a review of the calibration and operation of the mortgage measures. That process will continue as normal in 2021.

What is the Mortgage Measures Framework Review?

Mortgage Measures Framework Review

In addition to our annual assessment, we are undertaking a broader review of the overall policy framework for the mortgage measures.

As the mortgage measures have been in operation for nearly seven years, it is important that we not only review the calibration of policy annually, but that we also consider the overarching framework.  This is good policy practice.

A review of the framework will allow us to assess the objectives of the mortgage measures themselves, and ask whether they remain appropriate. We will review the tools that we use, and the factors that we take into account when setting their levels. This is to ensure that the mortgage measures continue to remain fit for purpose, in light of changes to our financial system and economy since the measures were first introduced in 2015.

Public Engagement

As part of this process, we wanted to hear from the public. We are very aware of the challenges that the current housing market poses for many people, especially younger generations. At their core, these challenges stem from an underlying imbalance between the demand for, and supply of, housing.

We also know that, behind all the economic data and evidence that we look at, lie people’s own lived experiences. So we are listening.

In June-July 2021 we conducted an online survey alongside a series of listening events where we asked the public and other stakeholders to  share views and experiences on the functioning of the mortgage measures, as well as perspectives on what a sustainable mortgage market looks like.

The input gathered through this process will be key to our review of the framework, which will run throughout 2021 and 2022.

What Happens Next?

We will review the responses to the survey, analyse feedback from the listening events, and then use this information to inform our overarching review of the Mortgage Measures Framework.

The more feedback we gather from the wider community, the stronger our framework review will be. We plan to publish our own assessment of what we have learned from the online survey later in the year.

For more information on the mortgage measures, see also:

Tá leagan Gaeilge den leathanach seo ar fáil anseo.