First Time Buyers

Rules for first time buyers

Before you start there are some specific rules that apply to first time buyers in Ireland that you should be aware of.
To get a foot on the property ladder you’ll need a minimum 10% deposit.

There is also a cap on what first time buyers can borrow based on:

Your income currently no more than 3.5 times your gross annual income

The value of the property you’re buying currently no more than 90% of the purchase price

These are called loan to income (LTI) and loan to value (LTV) limits – you can find out more about how these work by reading our guide to how much you can borrow there’s also a handy calculator to help you estimate the most you might be able to borrow.

Schedule a consultation

Get Started

First time buyers guide

Below is a basic guide for first time home buyers in Ireland. Before you can compare your mortgage options you will need to know the following:

Have you savied deposit?

The deposit is the amount of money you put towards purchasing your home.

When you’re buying your first home in Ireland you need a deposit of at least 10%.

For example, if you were buying a property worth €200,000 you would need a minimum deposit of €20,000.

However, the best mortgage rates tend to be available to borrowers who have a sizeable deposit, this is because they are less risky than borrowers with less money saved.

If you are looking a buying a new build home and you haven’t saved the entire deposit but you can evidence affordability with rental payments you could also avail of the Government’s Help-to-Buy Scheme where you could claim up to a maximum of 10% of the value of the property or €30,000 – whichever is lower. It is important to note though that the rebate is only available on properties valued at €500,000 or less.

See how much can you borrow?

(LTI) Loan to Income Limit – The Central Bank’s mortgage lending rules limit the maximum amount someone can borrow to 3.5 times their annual income, regardless of how much they earn.

(LTV) Loan-to-Value Ratio – The second major mortgage lending rule relates to the loan-to-value ratios which is based on the percentage of the property’s value that you can borrow and how much of it you must pay for upfront in the form of a deposit.

However, in any one calendar year, lenders can approve a small percentage of mortgages for first and second time buyers above this cap or below the deposit level. In these cases, often called ‘exemptions’, up to 4.5 times an applicant’s income or require a lower deposit amount.

Whether you get an exemption will depend on your credit history, the quality of your mortgage application and whether the lender still has room to give out an exemption.

Exemptions are often all used up by the middle of the calendar year, so if you want to apply for one, the earlier in the year that you apply for your mortgage the better.

Mortgage lenders also tend to give exemptions to people on higher incomes based on disposable income levels, which means around €50,000 or above for a single applicant and €75,000 and above for a joint application.

Choosing a Fixed or Variable Rate

Most mortgages offers either variable or fixed interest rates, and before you look for the best deal you need to decide which works best for you.

With a fixed rate mortgage, the interest rate remains the same for the duration of your mortgage deal. This means your monthly mortgage payments will stay the same, making it easier to budget each month.

With a variable rate mortgage, the interest rate can change depending on how the European Central Bank interest rates vary over time. The cheapest variable rates can be lower than fixed rate deals, but your repayments could change.

If you want help finding the right mortgage you could also choose to speak to a mortgage broker, they’ll be able to review your specific circumstances and recommend some suitable options.

Before you decide, make sure you speak to our mortgage specialists.

Schedule a consultation

Get Started

Help for first time buyers in Ireland

There are a couple of schemes that could help you buy your first property, these include:

Help to buy incentive:
This offers an income and Deposit Interest Retention tax refund over the past 4 years.

Rebuilding ireland home loan:
This offers mortgages at reduced interest rates for up to 90% of your property value through your local authority.

If you are living in social housing and want to buy your first home you may also qualify for:

Mortgage allowance scheme:
Under the scheme you could get an annual allowance for the first five years to help with your mortgage payments, worth a total of €11,450.

Schedule a consultation

Get Started

First Time Buyer application process

Step 1: Find out how much money you can borrow

You can get a clear idea of how much you can afford to borrow right now that too in a matter of seconds and with a just few clicks, all you need to do is take the help of our easy-to-use calculator.
Step 2: Talk to our first-time buyer specialists

To provide you with the right guidance and advice for your first property purchase, our specialists are on their toes, you can drop us a message on our website or just give us a call at Call 01 2865211.
Step 3: Save for your first-time buyer deposit

The mortgage that you apply for would pay for the 90% value of the property this leaves you with the responsibility to save the 10% that you would require to pay as the deposit of the property that you want to purchase.

This does not end here you must also take into consideration legal fees, valuation reports, stamp duty, surveys and all such types of extra costs that you would require to pay during the purchase of the property. Having a well-crafted budget in place would eliminate the chances of end-time hassles.

We have the Mortgage Saver account that is specially crafted to help you save for the deposit.

Do not forget to look out for the government schemes for additional help with your first time buy.
Step 4: Start your application

After crafting a budget and saving the money for the deposit you are ready to take the process further and apply for the mortgage.

With all the accurate information that you have provided us and the deposit money that you have saved, we will give you the accurate amount that you can borrow. i.e Approval in principle by which now you know the money that you can borrow you can go out and hunt for the best property that fits the budget for a validity period of 6 months.
Step 5: Provide property details

Have you found the property? Yes? Great, now all you need to do is provide us with the details of the property so that we can finalise the mortgage loan. At this stage, you also have to make sure that you have a solicitor who would assist you before the finalisation of the loan. One of the important factors that.
Step 6: Provide validation report

You do not need to be ready with it prior to the requirement arises. We would provide you with the valuer to ensure that the process is done smoothly.
Step 7: Seal the deal

Now when you have the right property suited for your first buy, and you and your solicitor are sure of the contract after review. It is time to sign the contract.
Step 8: The final step before the completion of the process

This is to make sure that you have mortgage protection and home insurance in place before the mortgage amount is transferred to the account of your solicitor.

Why choose platinum mortgages?

Poor credit experts

No matter your circumstances, our in-house credit specialists can help everyone get a mortgage, even if you have a history of adverse credit.

No obligation advice and quotes

We will recommend the perfect mortgage for your needs and provide you with an Agreement in Principle, if you are looking to buy a new property.

Stress and hassle free

We handle the entire mortgage application process through to completion, liaising with your lender, solicitors and estate agents to remove the hassle from you.

With you all the way

As a responsible broker, we want your mortgage to always be the best fit for you. So when it’s time to review it, we will be here to help.

Protecting what matters most

We provide tailored life and home insurance solutions, so you can be assured that your loved ones and possessions are protected.

24/7 mortgage applications

Apply for a mortgage at any time of the day through our 24/7 MortgageApplication portal.

The Platinum portal:
your mortgage, your way

Stay up to date on the progress of your mortgage application via your own portal.

Securely upload and submit your documents

Instant access to your personal, 5 star rated mortgage broker

Track the progress of your application anytime, anywhere

Access on a PC, tablet or smart phone

Frequently asked questions

What is a first-time buyer in Ireland? / Who is a first-time buyer?

A first-time buyer is defined as “a person buying a house or apartment who has not previously owned a home and hence has no property to sell.” In other words, anyone applying for a mortgage who is not a home mover, homeowner, buy-to-let investor, or just remortgaging is considered a first-time buyer.

Can I rent out on a first-time buyer mortgage?

You can’t, that’s the solution. Residential mortgages are for homes in which the borrower intends to dwell and call home. If you want to purchase a house to rent out and never live in, you’ll need a buy-to-let mortgage, which can be difficult to obtain.

How do first time buyer mortgages work?

Applying for your first mortgage might be a scary experience, but it does not have to be. Irish Mortgage Corporation’s team of specialists has compiled a handbook for first-time buyers to assist you make the correct decisions when the time comes to go on the property ladder.
How much is stamp duty first time buyer?

If you’re purchasing your next main house in Ireland, these changes mean you’ll pay less stamp duty in the majority of circumstances.

As of today, no stamp duty is charged on the first £250,000 of a property’s purchase price. Stamp duty is levied at 5% on amounts ranging from £250,000.01 to £925,000.

On a £300,000 home. In this case, you would pay no stamp duty on the first £250,000 and 5% on the remaining £50,000. This equates to £2,500 in stamp duty.

On a £500,000 home. In this case, you would pay no stamp duty on the first £250,000 and 5% on the remaining £250,000. This translates to £12,500 in stamp duty.
How do I qualify for first time home buyer?

You come upon a property for sale for €300,000 and wonder if you can afford it.

As a first-time buyer, the maximum financing facility available is 90% of the purchase price, or €270,000.

This is computed as €300,000 buying price multiplied by 90% = €270,000

As a result, you will require €30,000 for your 10% deposit, as well as funds for stamp duty and legal expenses (about €3,000 for stamp duty and €2,000 for legal fees), for a total of €35,000. If you buy a used house, you will need to have saved the €35,000 or a major portion of it, with the remainder perhaps coming from a gift.

If the house is new and will be used as your primary residence, and you are a qualifying first-time buyer (someone who has never had a home mortgage before), you may be eligible for a help to buy scheme worth up to 10% of the purchase price – €30,000!
What constitutes a first time home buyer?
What first time buyers need to know?
First-time buyers have a variety of options accessible to them in terms of mortgage products and, perhaps more crucially, interest rates. We are here to assist you on your options.

The following are the major components of a mortgage product:
- Period – The longer the term, the more interest you pay – The longer the term, the cheaper the monthly repayments – an affordable balance must be struck.
- Variable or fixed rate
- What is the rate that will follow the fixed rate if it is fixed?
- Mixed rates – You can divide your mortgage between variable and fixed rates to balance your risk.
Do first time buyers pay stamp duty Ireland?
How much deposit for a mortgage first time buyer?
Can I get a first time buyer mortgage?
Can first time buyers rent their property?
How does first time buyers work?
How much down payment for a house first time buyer?

If you are a first-time buyer who purchases or constructs a new residential property between 19 July 2016 and 31 December 2022, you may be eligible for a refund of income tax and DIRT paid in the preceding four tax years. You are not eligible for PRSI or USC relief.

If you are purchasing (or self-constructing) the home with another person, they must also be a first-time buyer. You will not be eligible if you have previously purchased or constructed a home, either alone or jointly with another person, even if you are now separated or divorced from that person. If you have owned a home in another country, you will not be eligible.

The policy only applies to houses purchased or built for the first-time buyer’s primary residence. It does not apply to investment properties. Cash purchasers are not eligible. Your eligibility will not be affected if you have inherited or been given a property.
What are the new government scheme for first time buyers?
What are the best deals for first time home buyers?

The Help to Buy (HTB) Scheme assists first-time purchasers in purchasing a newly constructed house or apartment. It also applies to custom-built residences. It only applies to houses worth less than €500,000.

The Help to Buy Scheme reimburses you for income tax and Deposit Interest Retention Tax (DIRT) paid in Ireland during the preceding four tax years..

In July 2020, the HTB Scheme was expanded. The Enhanced Help to Buy Scheme is the name given to this increment. The Enhanced Help to Buy Scheme is in effect until December 31, 2022.
What are the mortgage requirements in Ireland for first time buyers?

If you are a first-time buyer who purchases or constructs a new residential property between 19 July 2016 and 31 December 2022, you may be eligible for a refund of income tax and DIRT paid in the preceding four tax years.

You are not eligible for relief from social insurance (PRSI) or the Universal Social Charge (USC).

If you are purchasing or developing the property with another person, they must also be a first-time buyer. You will not be eligible if you have previously purchased or constructed a home, either alone or jointly with another person, even if you are now separated or divorced from that person.

The policy only applies to houses purchased or built for the first-time buyer’s primary residence. It excludes investment properties. It makes no difference if you inherited or received a gift of property.

You must get a mortgage for at least 70% of the purchase price (or, in the case of a self-build, 70% of the mortgage provider’s authorized valuation). This is referred to as the loan to value ratio. A guarantee may be used to secure the loan. A guarantor is someone who promises to be responsible for paying your mortgage if you don’t or can’t, such as a parent or close family. From the date of purchase, you must live in the property for 5 years.
List of easiest banks to get a mortgage in Ireland for 1st time buyers.
There are eight main mortgage lenders in Ireland for first time buyers:

You are not eligible for relief from social insurance (PRSI) or the Universal Social Charge (USC).
- AIB
- Avant Money
- Bank of Ireland
- EBS
- Finance Ireland
- Haven
- • ICS Mortgages
- • Permanent TSB
How to get a mortgage without a deposit in Ireland?

If you don’t have a large deposit or don’t want to borrow from relatives, you can purchase a property with the aid of a high mortgage loan and the Central Bank of Ireland’s HTB program.

There are presently no shared ownership programs for property in Ireland.

Seek guidance from a mortgage provider on the best approach to borrow money.

Investigate how much it will cost you to reside in your preferred region. Be prepared before meeting with a financial services firm. Use the handy online tools to determine how much you can afford to borrow and at what interest rate.

When seeking legal assistance on the purchase of a house, consult with an experienced conveyancing counsel..

Let’s discuss required Mortgate options

Speak to a Platinum Mortgage team member now

01 286 5211

Schedule a Meeting

First Time Buyers

Rules for first time buyers