Step 1: Save the deposit
Under the Central Bank’s rules, first-time buyers need a deposit of at least 10% of the price: €35,000 on a €350,000 home. Lenders want to see that you can save regularly, so a record of saving, or of paying rent, helps your application.
If you’re buying a new home or building one, Help to Buy can cover much of the deposit. You get back the income tax and DIRT you paid in the last 4 years, up to the lowest of €35,000, 10% of the price or the tax you paid. The home must cost €500,000 or less, and your mortgage must be at least 70% of the price. See Help to Buy explained, or work out yours with our Help to Buy calculator.
- €300,000 home Deposit €30,000
- Help to Buy €30,000 Nothing from your savings
- €400,000 home Deposit €40,000
- Help to Buy €35,000 From your savings €5,000
- €500,000 home Deposit €50,000
- Help to Buy €35,000 From your savings €15,000
Up to €350,000, Help to Buy can cover the whole 10% deposit
You get the lowest of €35,000, 10% of the price, or the income tax and DIRT you paid in the 4 years before you apply.
Step 2: Work out how much you can borrow
First-time buyers can borrow up to 4 times their gross income. A couple earning €90,000 between them can borrow up to €360,000. Lenders can go over this for up to 15% of their first-time buyer mortgages each year, so ask yours. See the Central Bank mortgage rules explained.
What you can afford is the smaller of two limits: 4 times your income, plus your deposit, and what your deposit is 10% of. Our mortgage affordability calculator works out both, and takes the stamp duty out of your savings first.
Your savings pay the stamp duty first, and the rest is the deposit.
Step 3: Check the schemes
If your mortgage isn’t enough, two government schemes can help:
| First Home Scheme | Local Authority Home Loan | |
|---|---|---|
| What it is | The State and banks pay part of the price for a share in the home | A mortgage from your council |
| How much | Up to 30% of the price (20% with Help to Buy) | Up to 90% of the value |
| Which homes | Mainly new homes and self-builds, under a price limit for your area | New and second-hand homes, under a price limit for your area |
| Who can apply | First-time buyers, and some “fresh start” buyers | First-time buyers whose bank offers aren’t enough, under the income limits |
With the First Home Scheme, you can buy back the State’s share whenever you like, in one go or in parts. You must borrow the most a participating lender will give you first. The price limits for each area are on firsthomescheme.ie, and the Local Authority Home Loan’s limits are on localauthorityhomeloan.ie.
Step 4: Budget for the costs
Stamp duty is 1% of the price up to €1 million, 2% on the part from €1 million to €1.5 million, and 6% above that. On a €350,000 home, it’s €3,500. On a new home, it’s charged on the price without VAT. First-time buyers pay the same rates. See our stamp duty calculator.
You’ll also pay for:
- a solicitor, for the contracts and the title
- a valuation for the lender, and a survey of the home for you
- mortgage protection insurance, which most lenders require, and home insurance
- moving, furniture, and any work the home needs
Step 5: Get approval and buy
- Approval in principle: a lender tells you how much it will lend, usually for 6 months. Compare rates and cashback offers, and remember a lower rate saves more over the years.
- Go sale agreed: you pay a booking deposit, which isn’t binding until contracts are signed.
- Full approval: the lender values the home and confirms the loan.
- Contracts and closing: your solicitor checks the title, you sign, the mortgage is drawn down, and you get the keys.
Work it out
See your monthly repayments with our mortgage calculator, and compare buying with renting.