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First time home buyers are defined by the Central Bank of Ireland as follows. A first-time buyer (FTB) is someone who has never previously owned a property and is purchasing a home to use as their principal private residence. This definition is important when you are taking out your first mortgage.
As a First time buyer you can normally get a higher mortgage amount because you are allowed to borrow a higher multiple of your income. A First time home buyer can get a mortgage amount of up to 4 times gross annual income. Other mortgage borrowers can generally only get up to 3.5 times income. To be clasified as a first-time buyer you should not have taken out a mortgage previously.
There are some exceptions. For example, if you are seperated or divorced and are no longer named on the old family home. Also if you have inherited a property but there is no mortgage on it. In both of these instances you can be considered a First time buyer for the purpose of getting a mortgage.
There are government schemes available specifically to help first time home buyers. The Help to Buy Scheme and the First Home Equity Scheme. Both of these schemes can help you. To qualify for these schemes you need to be a first time buyer but you also need to buy or self build a new home (not second hand). Please find more details of these schemes below.
With so many mortgage lenders and interest rate options to choose from, selecting the most suitable mortgage is not always easy. As a First Time Buyer you may be asking, where do I start?
This is where we come in. MortgageLine can provide you with all the help, advice and support you need to make your first step on to the property ladder as smooth as possible.
On this page you will find information to help you about mortgage interest rates and the Government schemes available to First Time Buyers. MortgageLine are also here to help when you are ready to get started and speak with us.
The first step is to speak with one of our experienced Mortgage Advisers for a free mortgage review. We will answer all of your questions and make sure you are on the right track to mortgage success. We will let you know if you are ready now or if not then what you need to do to get ready. Click the following link to get started and find out if you are ready.
Getting Mortgage Ready:
Get your bank accounts and savings in order 6 months before applying.
Pay your rent by regular monthly transfers to your landlord.
Build Savings in a separate dedicated mortgage savings account.
Make sure you have no missed payments or irregular bank transactions.
Apply Online and Talk with a MortgageLine Adviser:
When you are ready it is important to speak with someone. A MortagageLine Adviser will give you an idea how much you can borrow. We will also let you know if you are ready. This is an important first step so you know where you stand.
When ready the click apply now to get started. You can complete the mortgage application details in your own time with our handy and secure Online Mortgage Application Portal.
Get a Recommendation:
Once you have your deposit and have given us your information then we will recommend the best mortgage lender for you and apply for approval. Once approved then you can go house hunting. Most banks mortgage approval in principles are valid for up to 6 months and can be extended up to 12 months. This gives you tome to find a property.
Go Sale Agreed:
Once you find a suitable property then we can progress your application to a full Formal Loan Offer. This is the document your solicitor will need before you can sign contracts and drawdown the new mortgage.
MortgageLine will help you with the important decisions like choosing the best Mortgage Interest rate, Mortgage Protection/Life Insurance and Home Insurance. We can also recommend a solicitor and surveyor if needed.
Mortgage Completion:
This is the exciting part when you get your keys. When the sellers and your solicitor are both ready they will agree on a closing date. Then you drawdown the mortgage and get your keys. Yay! Now go make that place a home.
With this type of mortgage, you will pay a set rate of interest for a predetermined period of time. As your monthly mortgage repayments will stay the same, managing your budget should be a fairly straightforward process, provided that you can comfortably afford the agreed monthly repayments. If you are not sure how much you could borrow then please speak with a MortgageLine Adviser who will give you an indication.
This type of mortgage can go up or down depending on the mortgage lender’s Standard Variable Rate (SVR). Irish Mortgage lenders all individually set their own variable mortgage rates but generally move somewhat in line with market conditions and the ECB Rate (European Central Bank Rate).
If you think you want to pay off big lump sums of your mortgage in the not too distant future, without penalty, then a variable mortgage could be for you.
This type of mortgage will offer a price reduction for a set period of time off the lender’s Standard Variable Rate (SVR). A discount mortgage is a form of variable-rate mortgage, which means that your monthly payments can vary from month to month.
Some mortgage lenders also offer discounted Fixed rates. For example if your mortgage is more than €250,000 then you might be offered what is referred to as a High Value mortgage rate.
This type of mortgage will offer a price reduction off the mortgage lenders normal rates. So basically you will get a lower preferential rate if your home is energy efficient. The mortgage lenders measure this from the properties BER (Building Energy Rating). If the property has a BER of B3 or higher then you should get a Green mortgage rate.
Ask your MortgageLine Adviser about Green mortgage rates.
Tracker mortgages are a thing of the past in Ireland. They may or may not be reintroduced in the future. However for now it is ok to say, “I don’t know what a tracker mortgage is!”
First time buyers have access to the Revenue Help to buy scheme and can get up to €30,000 towards the purchase of a new home. The scheme was introduced in 2020 by the Irish Government and is managed by Revenue.
Qualifying conditions include
(tax being income tax and Deposit Interest Retention Tax)
Ask your MortgageLine Adviser about the benefits of the Help to Buy Scheme and how it could work for you.
You can also see more details on the Help to Buy Scheme on the Revenue Website
The First Home Equity Scheme (FHS) was introduced in 2022 and is designed to help First Time Buyers buy a new home. It is what’s known as a shared equity scheme. This means that homebuyers can get funds from the scheme towards the property purchase in return for a share in the property.
A summary of the main rules and criteria of the First Home Equity Scheme are as follows,
You should also be aware that there are property price ceilings that differ from County to County.
For a full list of the Rules and Eligibility criteria please refer to the First Home Equity Scheme Website.
Your MortgageLine Adviser will also be able to guide you if you have questions.
Potential beneficiaries must meet specific property-related conditions to qualify for the first time buyer scheme in Ireland. Here are the detailed requirements:
Once you Apply Online then a member of our team will be in touch to schedule your free mortgage review.
This can be done via phone, video call, or in-person meeting, depending on your preference and availability.
During the free mortgage review, we’ll discuss your financial situation, mortgage options, and answer any questions you may have.
We’ll provide personalised guidance to help you understand how to get mortgage ready and how much you can borrow.
In Ireland, the Central Bank’s mortgage measures form an integral part of the Macroprudential Policy framework designed to maintain sustainable lending standards in the mortgage market. These measures, which were first introduced in 2015, aim to prevent unsustainable relationships between credit and house prices, thus enhancing the resilience of borrowers, lenders, and the broader economy.
Critical components of these measures include loan-to-income (LTI) and loan-to-value (LTV) limits. For a first time buyer in Ireland, the LTI limit has been increased from 3.5 times to 4 times gross income, while the LTV limit remains at 90%. The Central Bank conducts regular reviews of these measures, taking into account economic changes and feedback from public consultations.
This process ensures that the measures remain effective and appropriate over time. The latest adjustments, effective from January 2023, reflect a balance between managing financial stability risks and accommodating structural developments in the housing market. So, if you use a first time buyer scheme in Ireland, you need to be aware of the specifics of the LTI and LTV limits applicable to you.
By inputting your gross annual income and details about the property you want to purchase, the calculator will show you how much you can borrow and what your repayments might look like based on the standard borrowing limits and deposit requirements.
Homeowners in Ireland can now estimate their potential monthly repayments in simple steps.
Provide your employment status & gross annual income to know how much you are eligible for.
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.
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