Compare first time buyer mortgages in Ireland
Discover Ireland’s best first-time buyer mortgages, compare interest rates, find out how to secure a mortgage and buy your first home.
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Latest House prices in Ireland
Ireland’s average house price in the 12 months to June 2025 was €370,000.
The Residential Property Price Index (RPPI) shows house prices have increased by 7.8% over the last 12 months. House prices in Dublin increased by 6.6%; elsewhere in Ireland, prices rose by 8.8%.
The cheapest place to buy a house is Leitrim with a median price of €190,000, while the most expensive place is Dún Laoghaire-Rathdown at €675,000.
What is a first-time buyer mortgage?
While not a distinct mortgage product, lenders often tailor mortgage deals to meet the needs of first-time buyers.
If you’re purchasing your first home, mortgage providers must follow the specific rules, scheme requirements, and eligibility criteria set out by the Central Bank of Ireland (CBI) for first time buyers.
First-time buyers (FTBs) have access to the same mortgage products as any other buyer, but there are different affordability rules. There’s also an opportunity to benefit from government help to buy schemes.
First time buyer eligibility
To qualify for one of the schemes or a first time buyer mortgage deal, you must meet various criteria.
Who qualifies as a first time buyer?
You’ll need to demonstrate that you:
If you have previously owned or taken out a mortgage, but have had a change of circumstance, you may qualify as a ‘Fresh Start’ applicant.
What is a Fresh Start applicant?
A ‘Fresh Start’ applicant is a borrower who is divorced or separated or has undergone bankruptcy or insolvency, and no longer has an interest in their previous property.
Fresh Start status means lenders may consider you as a first time buyer despite previous ownership. This means you could borrow up to 4 times your gross income and qualify for help to buy schemes.
Are you a first time buyer if your partner has owned a home before?
No, if you apply for a joint mortgage with someone who has already owned a home, you are not classed as a first time buyer.
The Central Bank of Ireland states “Where the borrower under a housing loan is more than one person and one or more of those persons has previously been advanced a housing loan, none of those persons is a first-time buyer.”
Choosing the right type of mortgage
Most mortgages in Ireland are offered with fixed rates or variable rates. You can fix your rate for anything between 1 and 30 years.
Decide on the type of mortgage that works best for you and the duration of your loan term, and shop around for the best terms and rates available from different lenders.
A longer mortgage term means smaller monthly mortgage payments, but you’ll pay more interest in total. A shorter duration means larger monthly payments, but you’ll pay less in total.
- Fixed rate mortgages 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.
- Variable rate mortgages The interest rate fluctuates with European Central Bank (ECB) rates. This means your rate and monthly payments may go up and down throughout the term.
Other mortgage products
You may come across some different mortgage products, which unlock additional benefits like cashback or discounted rates. These mortgages are often popular with individuals buying their first home.
- Cashback mortgages: This type pays a cash lump sum once you draw down your home loan. The money can help pay for moving expenses, like legal fees.
- Green mortgages: These are discounted mortgages for those with energy-efficient homes and a Building Energy Rating (BER) of B3 or better.
Our Complete Guide to Mortgages explains the types of mortgages in more detail, including cashback mortgages and green mortgages.
Key financial terms you’ll come across
- Loan to Income (LTI): The amount you can borrow based on your annual income.
- Loan to Value (LTV): The amount you can borrow based on the purchase price and deposit.
- Repayment term: This refers to the period you require the home loan. Mortgage terms are usually offered between 5 and 35 years.
- Indicative APRC (Annual Percentage Rate of Charge): Shows the total cost of a mortgage, including fees, over the entire period of the loan.
- Approval in Principle (AIP): An approval in principle is a letter from a lender showing the amount they could lend you based on some initial checks. It’s free to get an AIP, and usually valid for six or 12 months.
You can learn more about these terms in our guide How much can I borrow?
Applying for your first mortgage
Starting on your mortgage journey is exciting, but there are several financial rules you’ll need to know before your search begins.
Understanding the mortgage market is crucial to finding the best mortgage for your needs and circumstances.
To get a mortgage loan in Ireland you’ll be required to:
- meet the lender’s criteria
- show you’re creditworthy
- provide evidence of your income and outgoings
Financially, you’ll need to put down a sum of money upfront. This is called a deposit.
The amount of mortgage you can get is determined by your income, the value of your chosen property and the amount of deposit you can pay.
Before applying, find out the mortgage company’s lending criteria to increase your chance of a successful Approval in Principle (AIP).
How much deposit do first time buyers need?
You’ll need to provide at least 10% of the property’s purchase price.
For example, if you’re buying a property worth €300,000, you’ll need a minimum mortgage deposit of €30,000.
The greater your deposit, the lower your loan to value (LTV) will be. A lower LTV means better rates, and could ultimately reduce the total cost of your mortgage loan.
Borrowers with a sizeable deposit and a low LTV are eligible for the best mortgage rates because they are deemed less of a risk. To maximise your chance of mortgage approval, save as much as possible before applying.
How much can you borrow?
Before you start looking for your first home, you’ll need to determine how much you can afford.
First time buyers in Ireland can borrow up to four times their annual salary. If you’re buying a home with someone else, the loan to income (LTI) is based on your combined income.
The amount you could borrow depends on several factors, including:
- Your income or combined income
- The value of the property
- Your financial commitments
- Your credit history
- Your age or borrowing term
Our guide How much can you borrow with a mortgage? explains more and includes a calculator to help you work out how much you could borrow based on your circumstances.
Use a mortgage calculator to work out what monthly repayments you can afford based on your income and outgoings.
Each lender may have different lending criteria, but they all have to adhere to mortgage measures set by the Central Bank of Ireland.
Are there exceptions to the Central Bank’s lending rules?
The Central Bank allows lenders to make some exceptions to the rules on lending limits. These are called mortgage exemptions.
Every year, lenders are allowed to offer 15% of first time buyers a mortgage above the income limit or reduce the deposit requirement.
With a mortgage exemption, a first time buyer can borrow up to 4.5 times their income.
What does a mortgage lender look for?
Mortgage lenders in Ireland assess various factors to decide if you’re a creditworthy borrower and can afford the mortgage repayments.
They combine their own internal lending criteria with the rules set out by the Central Bank of Ireland (CBI) around loan to income (LTI) limits and loan to value (LTV) limits.
They will look in depth at your:
Other factors they may take into account are:
- Age: Lenders have maximum age limits at the end of the mortgage term, typically between 66 and 75.
- Deposit savings: Lenders like to see your deposit built through regular savings, although gifts from family are usually accepted if supported with evidence.
- Property type: The property you’re buying must meet the lender’s criteria. A valuation will ensure the property’s market value supports the loan amount.
Useful to know
Documents you'll need to provide
Lenders need evidence that you are who you claim to be, can afford to repay the loan, and are creditworthy.
How to improve your credit record
Lenders will access your credit report from the CCR, which records all your credit agreements for loans, credit cards, and other borrowings. They’ll assess your repayment history and personal solvency.
They’ll also check any previous property transactions. If you’ve ever been bankrupt, had a Personal Insolvency Arrangement (PIA), or had a property repossessed, this will weaken your chances of approval.
However, there are many ways you can boost your credit status:
Learn more in our guide How to check your credit record.
Help for first time buyers in Ireland
There are several schemes that help first time buyers purchase their first home.
Help to Buy Scheme
The Help to Buy scheme started in 2017 to help first-time buyers buy newly built homes and self builds. Borrowers can claim a tax rebate of up to €30,000 or 10% of the value of the property. If you qualify, you can claim a refund of income tax and deposit interest retention tax (DIRT). Find out more at Revenue.ie.
First Home Scheme (FHS)
A government-backed scheme to help first-time buyers get on the property ladder. The FHS aims to make house purchases more affordable by supporting homebuyers with the cost of up to 30% of a new home. It’s available for eligible borrowers buying newly built homes and has now been extended to self-builds in rural Ireland.
Local Authority Home Loan
This is a government-backed mortgage for first time buyers or other eligible applicants through local authorities. All types of homes qualify, including those in the Tenant Purchase Scheme and the Affordable Housing Scheme. You can borrow up to 90% of the market value of the property. Find out more at Local Authority Home Loan.
Local Authority Affordable Purchase Scheme
With this scheme, the local authority takes a percentage share in your home to cover the reduction in price. New, affordable homes under this scheme are located in areas with the greatest housing need. To qualify, your gross income must be below 85.5% of the home’s market value. Find out more on the LDA.ie website.
Tips for getting your first mortgage
Many lenders offer first time buyer mortgages designed specifically for borrowers purchasing a first home.
Your mortgage payments will take a large chunk of your monthly income, so it pays to shop around for the lowest interest rate.
A good place to start your mortgage search is on a comparison website which lists Irish lenders and allows you to filter your results.
Take time to find out about different lenders and rates, and always compare the APRC (Annual Percentage Rate of Charge) because this shows the overall cost of the mortgage. The APRC will help you accurately compare mortgage interest rates across different lenders.
Before you compare mortgage deals, you’ll need to know:
- The property value
- How much you need to borrow (the mortgage amount)
- How much time do you need to pay it back (the repayment term)
- The type of mortgage you want (fixed 1 to 30 years or variable rate)
It also helps to know your BER rating, so you can unlock certain mortgage deals that reward energy-efficient homes with a BER rating above B3.
Remember to factor in any product charges and legal fees. Cashback mortgages are worth considering because they can often help with those upfront costs, but check the interest rates, as they could be higher than non-cashback mortgage rates.
Should you use a mortgage broker?
A mortgage intermediary or broker can help you find the cheapest mortgage deals and the best home loan for your circumstances.
A mortgage broker can also:
This information is for guidance only, so seek professional financial advice tailored to your circumstances if required.
First Time Buyer FAQs
What is an Approval In Principle?
An approval in principle, is a letter from a lender showing the amount they could lend you based on some initial checks. It’s free to get an AIP, and usually valid for six months. Our guide, How to get a mortgage Approval in Principle in Ireland explains the process more fully.
What is the Indicative APRC (Annual Percentage Rate of Charge)?
Mortgage lenders are required to quote the Annual Percentage Rate of Charge (APRC) when advertising a borrowing rate.
The APRC shows you the total cost of a mortgage, including fees, over the entire period of the loan. Its purpose is to help you compare the true cost of borrowing.
For example, a 2 year fixed rate mortgage with an introductory rate of 1.99% and a booking fee of €999 that reverts to the lender’s standard variable rate (SVR) of 4.19% for the next 23 years ends up with an APRC of 3.7%.
The rate is indicative because it’s based on a typical mortgage of €100,000 over a 20 year term.
What other costs are involved in buying a house?
Besides the upfront costs of your deposit, there are other housebuying costs to factor in:
- Stamp duty (1% of property price)
- Legal fees (€2,000-€3,000 +VAT)
- Surveyor fees (€300 +VAT)
- Valuation fees (€150-€250 +VAT)
- Mortgage Protection Insurance
- Buildings insurance
- Moving costs
Compare mortgage rates & deals
Find a range of first time buyer and home mover mortgage deals in Ireland using our comparison.