If you are a first-time buyer in Ireland, a low deposit mortgage usually means you are borrowing 90% of the property price and putting down a 10% deposit yourself. In simple terms: you provide the deposit and the lender funds the remaining 90%.
A quick reality check: 100% mortgages are no longer available in Ireland in the way they were pre 2008 crash. Today, the typical maximum loan-to-value for first-time buyers is 90%, which means the famous 10% rule applies. Under Central Bank mortgage rules, most low deposit mortgages for first time buyers are capped at 90% loan-to-value (LTV). That means the minimum deposit requirement applies in almost all cases, so you need at least 10% up front.
Now, before you sigh into your tea: that does not mean you are stuck saving forever. Between lender options and supports like the Help to Buy and the First Home Scheme, there are realistic ways to meet the deposit requirement sooner than expected and still secure one of the best low deposit mortgages for your situation.
Where To Get a Low Deposit Mortgage in Ireland
When buyers search for low deposit mortgages for first time buyers, they usually mean:
- Which lenders will offer 90% LTV?
- What are the criteria?
- What is the catch?
The good news is there are three main routes in Ireland, and they each suit different types of buyers.
Banks
Most major Irish banks offer a low deposit mortgage at 90% LTV for first-time buyers. The competition is no longer just about the lowest rates anymore. Depending on the lender and the product, you might also see:
- Cashback offers (upfront)
- Green mortgage rates for energy-efficient homes
- Fixed-rate options of varying lengths
- Different rules around overpayments and break fees
When assessing applications for low deposit mortgage deals, banks focus heavily on:
- Your savings track record
- Loan-to-income limits
- Employment type and probation status
- Overall affordability
- Credit history
If you want a solid overview of lender expectations and the documents you will need, our guide on low deposit first time buyer mortgages is a good starting point and explains the process step by step.
Credit Unions
Credit unions can be an excellent option for low deposit mortgages for first-time buyers who want a more human and personalised approach. Some credit unions assess applications with a stronger focus on:
- Your savings history and consistency
- You will need to join but do not need to be a current credit union member.
- Local knowledge and common-sense underwriting (where possible)
That said, credit union mortgages are not identical across the country, and policies can vary.
Does MortgageLine offer Credit Union Mortgages?
Yes. MortgageLine can offer advice on mortgages from the Progressive Credit Union. This is a partnership that is exclusive to MortgageLine. In other words, you cannot get a Progressive Credit Union mortgage with any other broker. If you are exploring a low deposit mortgage deal and want to compare it properly against bank options, we can help you do that in a clear, apples-to-apples way.
Local Authority Loan
If a bank or credit union has turned you down, it is not always the end of the road. The Local Authority Home Loan is designed for applicants who:
- Can afford mortgage repayments,
- Meet income and eligibility criteria,
- But cannot get sufficient mortgage approval from a bank.
It is run through local authorities in Ireland, and it can be a genuine alternative for eligible buyers who are stuck between “I can afford this” and “the bank says no”. It still involves affordability checks and documentation. However, it can provide a viable path to a low deposit mortgage where other lenders have declined. Local authority loans exist specifically to support creditworthy buyers who do not fit standard bank lending boxes.
Ways To Boost Your Deposit
A low deposit mortgage is really about solving one thing: the cash you need upfront. In Ireland, two supports come up again and again because they can reduce the amount you personally need to save to hit that 10% threshold.
Help To Buy (HTB)
The Help to Buy (HTB) scheme can give first-time buyers a tax refund of up to €30,000 towards a qualifying new build purchase.
Here is why it matters for low deposits:
- If you need 10% deposit, HTB can cover some or even most of it, depending on the purchase price and your tax paid.
- It can be the difference between “we are nearly there” and “we can actually go sale agreed”.
For a full breakdown of eligibility and how it’s calculated, see our help to buy scheme page:
First Home Scheme
The First Home Scheme is a shared equity scheme. In very simple terms: if you cannot bridge the gap between what the bank will lend and the price of the home, the scheme can take an equity share in exchange for helping fund part of the purchase.
It is particularly relevant for first-time buyers in Ireland where:
- You can meet affordability,
- But the numbers still do add up due to deposit size or price caps.
You will want to understand the long-term implications (like buying back equity later), but it can be a practical way to access a home sooner without waiting years to save a bigger deposit.
Our first home scheme guide explains how it works in Ireland.
Perks To Look for When Comparing Low Deposit Mortgages
When people search for the best mortgages for first time buyers with low deposit, they often focus on the interest rate alone. Fair, because the rate matters. But the “best” low deposit mortgage deals are usually the ones that also fit your life.
Here are the perks worth comparing, beyond the headline rate:
- Flexibility: Some lenders allow overpayments without a fixed rate penalty, while others are more restrictive.
- Flex Rate: Available from Avant Money, this is a variable rate linked to the 12-month Euribor and reset once a year.
- Payment holidays: Some lenders offer payment breaks for a few months, with interest added to the balance (helpful in a pinch, but not “free”).
- Green rates: Discounts for energy efficient homes (based on BER rating).
- Longer-term fixed rates: Some lenders offer long fixed terms, in certain cases up to 30 years (great for certainty but check break costs).
- Portable mortgages: The option to bring your mortgage with you when you move home, potentially avoiding fixed rate penalties.
Now let’s zoom in on points that matter most for first-time buyers going in at 90%.
Cashback
Cashback can be a big help when you are buying with a tight budget and a small deposit. Why? Because buying a home in Ireland comes with plenty of additional upfront costs:
- Legal fees
- Valuation fees
- Survery costs
- Moving expenses
- Initial furnishing
Cashback will be paid:
- Up to 2% shortly after drawdown
- Bank of Ireland also offers a further 1% cashback after 5 years.
Cashback mortgages are especially popular with First Time Buyers. The extra funds can help with initial moving in costs. If you are switching mortgage, then the Cashback can cover switching costs.
Green Rates
If you are buying a home with a strong BER (building energy rating), green rates can reduce your mortgage cost over time, even if you are only putting down 10%.
This is one of the sneaky wins for first-time buyers: many new builds (and upgraded homes) can qualify, and the savings can add up over a fixed term. It is not simply good for the planet. It can be good for your pocket too.
For many first-time buyers using a low deposit mortgage, green rates provide long-term savings without requiring a larger deposit.
Fees And Flexibility
Some mortgages can look identical on paper until you read the small print. When comparing low deposit mortgage deals, watch for:
- Valuation fees and what’s included.
- Break charges on fixed rates (and how they are calculated)
- Overpayment rules (allowed amount, penalties, lump sums)
- Drawdown rules and timelines (especially if buying new build)
If you are not sure which fees matter for your situation, that is exactly what a broker should be helping you with. You should not need a law degree to pick a mortgage.
Find the Right Low Deposit Path with MortgageLine
A low deposit mortgage is absolutely achievable in Ireland, but the best route depends on your income, deposit source, property type, and how you want your mortgage to behave over time.
MortgageLine helps first-time buyers:
- compare bank options versus alternatives (including Progressive Credit Union),
- understand HTB and shared equity impacts,
- choose perks that actually suit their long-term plans,
- and avoid expensive surprises in the terms and conditions.
If you want to run the numbers quickly, Use the MortgageLine Calculators to test affordability.
When you are ready to talk it through, Contact Us to Speak with a MortgageLine adviser for a free mortgage review call.
Frequently Asked Questions (FAQs)
Do low deposit mortgages have higher rates?
Sometimes they can because higher LTV (loan to value) lending can be priced differently by lenders. But it is not a rule. The “best” low deposit mortgage deal is often a mix of rate plus features like cashback and flexible options. Always compare the total cost, not just the headline rate.
Can I combine Help to Buy and First Home scheme?
In many cases, yes, buyers can use Help to Buy alongside the First Home Scheme if they meet the eligibility criteria for each. The exact mix depends on the property, your mortgage approval, and the scheme rules at the time, so it is worth checking your specific scenario.
Can gifted money be used as a deposit?
Yes. Gifted deposits are common in Ireland. Lenders usually require a gift letter confirming it is not a loan and that there is no repayment expected. You may also need evidence of the source of funds, depending on the lender and your circumstances.
Are credit unions slower than banks?
No, but they can have different timelines and processes. Some credit unions are very efficient, especially when your paperwork is strong and you have an established relationship. The best approach is to start early and keep documents organised.
Can I switch later from a 90% mortgage?
Yes. Once you build equity (through repayments and or property value increases), you may qualify for better rates at a lower LTV, and switching can become more attractive. But watch out for fixed-rate break fees.
