For many prospective homebuyers in Ireland, saving for a mortgage deposit can be one of the biggest barriers to homeownership. The idea of a 100% mortgage—where you borrow the full purchase price without needing a deposit—is highly appealing. But is it possible to get a 100% mortgage in Ireland? The short answer is NO but you may have options all the same.
100% mortgages without the need of a deposit are a thing of the past in Ireland but there are still ways to fund your entire property purchase using a combination of government schemes, gifted deposits, and strategic mortgage planning. Let’s explore the options available to help you buy a home even if you don’t have substantial savings for a deposit.
What is a 100% Mortgage? Can I Get One in Ireland?
A 100% mortgage allows a buyer to borrow the full price of a property without having to provide a deposit. Before the 2008 financial crisis, these types of mortgages were available in Ireland, but today, lenders require a minimum deposit of:
- 10% for Home Buyers (meaning a maximum 90% Loan-to-Value mortgage)
- 30% for Buy to Let investors (meaning a maximum 70% Loan-to-Value mortgage)
Since lenders no longer offer 100% mortgages, buyers need to explore alternative ways to secure a home without a traditional deposit.
Is It Possible to Get a Mortgage Without a Deposit in Ireland? The Reality
While a 100% mortgage in its purest form isn’t currently available, there are alternative ways to reduce the deposit needed. These include government-backed schemes, financial support from family, and certain lender incentives.
If you meet certain conditions—such as purchasing a discounted home from family, receiving a gifted deposit or availing of government schemes—you might be able to secure a mortgage without personally having to save the full deposit amount.
Smart Ways to Reduce Your Mortgage Deposit in Ireland
Even without a 100% mortgage, there are several ways to buy a home with little or no personal savings for a deposit. Here’s how:
Inheritance or Partial Gift
If you inherit, or are partially gifted, a share in a property then you might be able to borrow the full remaining purchase price. So, for example, if you inherit or are gifted 10% of a property’s value then you might be able to get a mortgage for the remaining 90% needed to fully purchase the property (100% of the discounted purchase price. As long as the actual purchase price is less than 90% of the property real market value).
Gifted Deposits
Many first-time buyers in Ireland rely on gifted deposits from parents or relatives. Mortgage lenders are happy with this arrangement as long as the gift is not repayable. Lenders will require a formal letter confirming the funds are a gift and not a loan. If you have relatives willing to offer you a gift and this along with your own funds amounts to more than 10% of the purchase price then you can borrow the full remaining amount, (subject to mortgage lender criteria).
Family Discount
A family member may be willing to offer you a discount if you buy a property from them. This is common in Ireland. The discount will allow you to purchase at a reduced price. If the discounted property purchase price is less than 90% of the property market value, it might technically amount to a 100% mortgage on the discounted price.
Government Support Schemes
Several government schemes help buyers reduce their required deposit:
- Help to Buy Scheme – First-time buyers can claim up to €30,000 towards the deposit for a new-build home. (This can be used as some or all of your 10% deposit, depending on the property purchase price)
- First Home Scheme – This shared equity scheme helps buyers fund the gap between their available funds (deposit plus their max mortgage amount) and the property price.
- Local Authority Affordable Purchase Scheme – Provides a mortgage option for buyers who struggle to secure a loan from traditional banks.
Practical Alternatives to 100% Mortgages in Ireland
If securing a deposit to purchase a property is difficult, consider these alternative government schemes and homeownership strategies:
Shared Ownership Schemes
Some local councils and housing partnerships offer shared ownership options, where you purchase part of the home and pay rent on the remainder.
Rent-to-Buy Schemes
With rent-to-buy schemes, part of your rent is saved towards your future deposit, allowing you to purchase the property after an agreed period.
Saving Strategies for Deposits
Even if a 100% mortgage isn’t available, strategic saving can make homeownership more achievable. Consider:
- Government tax rebate incentives such as the Help to Buy scheme
- Cutting non-essential expenses to boost savings.
- Using high-interest savings accounts or investment plans.
How Can a Mortgage Broker Help You Find the Best Home Loan for Your Circumstances?
Navigating the mortgage landscape can be overwhelming, especially when exploring ways to buy a home without a traditional deposit. A Mortgage Broker such as MortgageLine, can:
- Help you access exclusive mortgage deals
- Guide you through government schemes and eligibility requirements
- Advise on the best mortgage options based on your financial situation
- Assist with preparing a strong mortgage application
How MortgageLine Can Help
At MortgageLine, we specialise in helping first-time buyers and those struggling with deposits to secure the best mortgage options available. Whether you need advice on how to get mortgage ready, want to explore mortgages for first-time buyers, or need to find out how much you can borrow, we’re here to help.
Contact us today for a free mortgage review call and start your homeownership journey!
Frequently Asked Questions
Can land be used as a deposit for a mortgage?
Yes, if you own or are gifted land, some lenders may accept it as your deposit when applying for a self-build mortgage. The land value is factored into the loan-to-value calculation.
Can I use Help to Buy for a deposit?
Yes, the Government Help to Buy scheme can be used to make up part of your deposit towards the purchase of a new build home. You must be a First time Buyer and have paid tax in Ireland over the last 4 years.
What is the highest percent mortgage you can get?
In Ireland, first-time buyers can potentially mortgage up to 90% of the property value, meaning a 10% deposit is required. However, by using schemes the Help to Buy Scheme, you may be able to cover some of this deposit. The Help to Buy Scheme gives First Time Home Buyers a tax rebate of up to €30,000 towards a new home and this can be used as part of your 10% deposit.
While 100% mortgages are no longer widely available in Ireland, there are many smart ways to finance your home purchase with minimal upfront savings. Speak to MortgageLine today to explore your options and take the first step toward homeownership!
