WealthGuide
16 January 2025•Mortgages

A First-Time Buyer’s Guide to Purchasing a Home in Ireland (2025)

Buying your first home is a monumental step, but it can also feel overwhelming. With rising property prices, evolving mortgage rates, and various government schemes, navigating the Irish housing market can be daunting. This guide simplifies the process for first-time buyers in Ireland, breaking it down into manageable steps and providing essential tips.

By WealthGuide

1. Financial Preparation

Save for a Deposit

  • Most first-time buyers in Ireland need a deposit of at least 10% of the property’s value. For example, if the property costs €320,000 (the average first-time buyer mortgage value in 2025), you’ll need at least €32,000 saved.
  • Open a savings account early and cut back on non-essential expenses to build your deposit faster.

Understand Mortgage Limits

  • The Central Bank of Ireland allows first-time buyers to borrow up to 4 times their annual gross household income. Ensure your finances are in order, including maintaining clean bank statements and avoiding short-term debts.

Factor in Additional Costs

  • Beyond the deposit, you’ll need to budget for:
    • Stamp duty (1% for properties under €1 million).
    • Legal fees (€2,500–€5,000).
    • Surveyor fees (€200–€450).
    • Mortgage valuation fees.
    • Moving costs and initial furnishing.

Government Schemes

  • Help to Buy (HTB) Scheme: Provides up to €30,000 or 10% of the property price as a tax rebate for new builds.
  • First Home Scheme (FHS): A shared equity scheme offering up to 30% of the property’s value to bridge the gap between your deposit and mortgage.

2. Mortgage Application

Compare Rates

  • Mortgage rates in Ireland currently range from 3% to 6.4%. Green mortgages are particularly competitive for energy-efficient homes.
  • Recent rate cuts by lenders like PTSB and Bank of Ireland have made fixed-rate mortgages more attractive.

Get Pre-Approval

  • Secure a mortgage pre-approval letter from your lender. This shows sellers that you’re serious and helps set your budget.

Choose a Mortgage Type

  • Fixed-rate mortgages offer stability with set monthly repayments.
  • Variable-rate mortgages may fluctuate based on ECB interest rate changes but could save money if rates drop further.

3. House Hunting

Research Locations

  • Investigate areas that suit your lifestyle and budget. Use tools like the Property Price Register to see how much homes in your target area are selling for.

Attend Viewings

  • Visit properties at different times of day to assess lighting, traffic noise, and neighborhood activity. Take notes and photos for comparison.

Check Energy Ratings

  • Every home must have a Building Energy Rating (BER). A higher BER indicates better energy efficiency, which can save on heating costs.

4. Making an Offer

Once you’ve found your dream home:

  1. Submit an offer through the estate agent or seller.
  2. If accepted, pay a booking deposit (typically refundable until contracts are signed).
  3. Arrange for a structural survey to identify any defects or repair needs.

5. Legal & Final Steps

Hire a Solicitor

Your solicitor will handle:

  • Reviewing contracts.
  • Conducting property searches.
  • Registering ownership with the Land Registry.

Finalise Your Mortgage

Submit all required documents (e.g., bank statements, payslips) to your lender for final approval.

Sign Contracts

Once your solicitor confirms everything is in order:

  1. Sign contracts and pay the balance of the deposit.
  2. The seller countersigns, and a closing date is set.

Complete the Sale

On closing day:

  • Pay stamp duty.
  • Receive the keys to your new home!

6. Post-Purchase Considerations

Budget for Ongoing Costs

Owning a home comes with recurring expenses such as:

  • Property tax.
  • Home insurance.
  • Maintenance and repairs.

Settle In

Prioritize setting up utilities (electricity, gas, internet) and address any immediate repairs or upgrades.

Key Tips for First-Time Buyers

  1. Start saving early; every little bit helps build your deposit.
  2. Use government incentives like HTB and FHS to maximize affordability.
  3. Compare mortgage rates across lenders—small differences can save thousands over time.
  4. Don’t skip professional surveys; they can save you from costly surprises later.
  5. Be patient—finding the right home takes time.

Conclusion

Buying your first home in Ireland is an exciting journey that requires careful planning and informed decision-making. By understanding your finances, leveraging available supports, and seeking professional advice when needed, you can confidently navigate the process and secure a place to call your own.