Compare first time buyer mortgages

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.

How to choose your first mortgage

You can use this comparison to see the lowest mortgage rates for first time home buyers in Ireland. Before you compare the different options you need to:

• Have saved a deposit
• Know how much you want to borrow
• Decide what type of mortgage you want

Saving a 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.

Working out how much can you borrow

Before you can start looking for your first home you’ll need to work out how much you can afford to borrow.

First time buyers in Ireland can’t borrow more than 3.5 times their annual salary, if you’re buying a home with someone else this will be based on your combined income.

However, other factors like your credit history, dependants and other outgoings can also have an impact.

Picking a type of mortgage

Most mortgages offer 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.

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.

First time buyer FAQs