First Time Buyer Mortgage Ireland

As a first-time buyer, preparing for a mortgage application involves several key steps to ensure you are in the best possible position to secure a mortgage. Start by getting your finances in order. This means checking your credit score, clearing any outstanding debts, and making sure there are no irregularities in your bank statements. 

You can consistently save money in a separate savings account to build your deposit. It’s also crucial to demonstrate financial stability through regular payments, such as rent, which should be transferred monthly to show your ability to manage regular outgoings. Once your finances are organised, consult with a MortgageLine Adviser to understand how much you might be able to borrow and what documents you will need for your application.

Ireland offers several government schemes to assist a first time buyer mortgage in Ireland, the most notable being the Help to Buy Scheme and the First Home Equity Scheme. The Help to Buy Scheme offers up to €30,000 or 10% of the purchase price (whichever is lesser) towards the purchase of a new home. 

The First Home Equity Scheme is designed as a shared equity scheme where the government provides funds in exchange for an equity share in the property. These schemes aim to make home buying more accessible and affordable. Your MortgageLine Adviser can provide detailed information and help you determine eligibility for these programs.

Yes, combining the Help to Buy Scheme with the First Home Equity Scheme (FHS) is possible and can be particularly advantageous for first-time buyers looking to maximise their purchasing power. While the HTB scheme provides a tax rebate, the FHS offers an equity loan that can cover up to 30% of the property price, effectively reducing the upfront cost of the home. 

However, if both schemes are used, the maximum equity stake from FHS is limited to 20%. It’s important to note that there are specific conditions and eligibility criteria for both schemes, which a MortgageLine Adviser can help you navigate to ensure you leverage both opportunities optimally.

Choosing between a fixed and a variable mortgage rate depends on your financial situation and your tolerance for risk. A fixed mortgage rate offers stability as your interest rate and monthly payments remain the same for a set period, making it easier to budget and plan your finances. On the other hand, a variable rate can fluctuate with changes in the market, potentially lowering your payments but also posing a risk of increasing costs. 

If you prefer flexibility and plan to make significant overpayments or settle your mortgage early, a variable rate might be suitable as it usually has fewer restrictions on repayments. Consult with a MortgageLine Adviser to explore the best options based on your financial goals and market conditions.

After receiving a Mortgage Approval in Principle, the next step is house hunting within the approved budget. Once you find a property and your offer is accepted, inform your Mortgage Adviser, who will then help you proceed to the next stages. 

This includes finalising the mortgage application, obtaining a Formal Loan Offer, and coordinating with your solicitor to prepare for the property purchase and mortgage drawdown. Our mortgage broker will guide you through these stages, ensuring that you understand each step and helping manage the process until you successfully secure your new home.

Individuals purchasing their first home in Ireland are required to provide a minimum deposit of 10% of the property’s price when applying for a mortgage. This initial payment is a critical part of the home-buying process, serving as the buyer’s equity in the property. For example, if the home costs €300,000, the first-time buyer would need to save at least €30,000 to meet the minimum deposit requirement. This amount can represent a significant financial commitment, and accumulating this sum often requires substantial savings efforts from prospective homeowners.

A first-time buyer (FTB) is an individual who has never purchased any type of residential property, whether a house, apartment, or a plot of land intended for building a home, either alone or with others, in Ireland or any other country. If you have previously purchased a house abroad and have not owned property in Ireland, you would not qualify as a first-time buyer under Irish regulations. The criteria for first-time buyer status in Ireland include any form of property ownership, regardless of the location. This means that if you have ever had a property registered in your name, whether domestically or internationally, you are considered to have owned property and thus do not meet the definition of a first-time buyer.

In Ireland, the borrowing capacity for first-time home buyers is determined by a set of guidelines that link the maximum mortgage amount to the buyer’s gross annual income. Specifically, first-time buyers can borrow up to four times their gross annual income. Additionally, the mortgage is limited to covering no more than 90% of the property’s purchase price.

For example, if a first-time buyer has a gross annual salary of €80,000, the maximum mortgage they could qualify for would be €320,000. This calculation provides a guideline for the maximum loan amount that potential buyers can expect to receive based on their income levels, helping them to gauge how much they might need to save for a down payment and any additional costs involved in purchasing a home.