Budgeting for First-Time Buyers in Ireland: What You Need to Know
Buying your first home is one of the biggest financial milestones you'll reach, but it’s also one of the most complex financial decisions. Between saving for a deposit, securing mortgage approval, and navigating grants and hidden costs, there’s a lot to consider.
To help you plan your budget and maximise savings, here’s a step-by-step breakdown of what first-time buyers in Ireland need to know.
1. The Deposit: What Do You Need?
The minimum deposit for first-time buyers in Ireland is 10% of the property price.
● Example: If you’re buying a home for €350,000, you’ll need €35,000 upfront.
● Tip: Check if you qualify for the Help-to-Buy scheme, which refunds up to €30,000 of tax paid over the last four years to put towards your deposit.
🔗 Learn more at Revenue.ie
Additional Help:
● If you don’t have a full deposit yet, some lenders offer 100% mortgage options through schemes like Local Authority Home Loan (details here).
● You might also qualify for the First Home Scheme, where the government provides up to 30% of your property price as shared equity, reducing your mortgage size.
🔗 See eligibility at FirstHomeScheme.ie
2. Mortgage Approval: What Can You Borrow?
Banks will typically lend up to 4x your gross income for first-time buyers.
● Example: If you earn €60,000, you could borrow up to €240,000.
● Mortgage rates vary significantly, so comparing lenders is essential—small differences in interest rates can save or cost you thousands over time.
There are lots of mortgage comparison sites out there like Lively.ie, Switcher.ie and Bonkers.ie so take the time to research & see what’s out there.
3. Don’t Forget the Extra Costs!
First-time buyers often focus on the deposit and mortgage repayments but forget about these additional costs:
Upfront Costs:
- Stamp Duty: 1% on properties up to €1 million (Revenue.ie)
- Legal Fees: €1,500 to €3,000 for a solicitor
- Valuation Fee: ~€150 to €250 (needed for mortgage approval)
- Surveyor’s Report: ~€300 to €600 (essential for older properties)
Ongoing Costs:
- Mortgage Protection Insurance: Required by lenders (~€10 to €50 per month)
- Home Insurance: Required before drawing down your mortgage
- Property Tax & Maintenance Costs: Varies by location
4. Government Grants & Incentives to Save You Thousands 🏡💰
🔹 Help-to-Buy Scheme – Up to €30,000 tax refund for new builds.
🔹 First Home Scheme – Government covers up to 30% of your home price.
🔹 Vacant Property Grant – Up to €70,000 to renovate a property that hasn’t been lived in for 2+ years.
🔗 Read more here: Support for Renovating a Vacant Home
💡 Example:
A friend recently secured €70,000 towards renovation under this scheme on a home that had been vacant for 4 years - if you're willing to renovate, this could be a game-changer!
5. How to Strengthen Your Mortgage Application
Lenders will check your financial habits for 6+ months before approving a mortgage.
- Regular Savings: Show ability to afford mortgage repayments.
- No Missed Payments: Keep loans & bills up to date.
- Avoid Large Personal Loans or Gambling Transactions: Red flags for lenders.
- Keep a Stable Income: Full-time employment preferred over contract work.
📌 Use a budgeting tool like MoneySherpa.ie to plan your finances:
🔗 First-Time Buyer Guide
Buying your first home isn’t just about the deposit and mortgage; it’s about planning for the long-term costs, securing grants, and maximising financial support. Here at Financial Planning Matters, while we don’t offer mortgages just yet, we do offer expert financial guidance, helping you build a step-by-step plan to get mortgage-ready with peace of mind for the future.
Book a consultation today.
