First-Time Buyer's Guide to Mortgages in Ireland (2025)
Summary
Everything you need to know about getting your first mortgage in Ireland — from the Help to Buy scheme to how much you can borrow, deposit requirements, and step-by-step application tips.
How Much Can You Borrow?
In Ireland, the Central Bank lending rules cap most first-time buyers at 4 times their gross annual income. For a couple earning a combined €100,000, that means a maximum mortgage of €400,000. Second-time buyers are limited to 3.5 times income.
However, banks can make exceptions — up to 15% of their new lending each year can exceed this limit. So it's always worth asking, especially if you have a strong savings history and stable employment.
Deposit Requirements
First-time buyers need a minimum deposit of 10% of the purchase price. For a €350,000 home, that's €35,000. Second-time and subsequent buyers need 20% for any amount above €220,000.
Building your deposit is often the biggest hurdle. Consider opening a regular saver account (some Irish banks offer up to 3-4% on these) and look into whether you qualify for the Help to Buy scheme.
The Help to Buy Scheme
The Help to Buy (HTB) incentive gives first-time buyers a tax refund of up to €30,000 (or 10% of the purchase price) when buying or building a new home valued at €500,000 or less. You must have paid enough income tax and/or DIRT over the previous 4 years to qualify.
The scheme has been extended to the end of 2025. To claim, you apply through Revenue's myAccount portal after you've signed a contract with a qualifying contractor or developer.
Fixed vs Variable Rate Mortgages
Fixed rates lock in your repayment amount for a set period (typically 2-10 years). This gives you certainty — your payments won't change regardless of what the ECB does with interest rates. Variable rates can go up or down, but often start lower.
In the current environment, many Irish buyers are opting for longer fixed terms (5-10 years) to protect against future rate increases. Compare rates across all lenders — even a 0.25% difference can save thousands over the life of your mortgage.
Step-by-Step: Getting Your Mortgage
- Check your credit report on the Central Credit Register (free once a year)
- Get Approval in Principle (AIP) from one or more lenders
- Start house hunting with your budget in mind
- Make an offer and go sale-agreed
- Submit your full mortgage application with supporting documents
- Get a surveyor's valuation of the property
- Receive your formal loan offer and sign
- Your solicitor handles contracts, and you draw down the mortgage on closing
Top Tips for First-Time Buyers
Start saving early and consistently — banks want to see a regular savings pattern over at least 6 months. Avoid taking on new debt (car loans, credit cards) in the months before applying. Get quotes from at least 3 lenders, and consider using a mortgage broker who can access the full market.
Don't forget to budget for additional costs: stamp duty (1% for properties up to €1m), legal fees (€2,000-€3,500), surveyor fees (€150-€300), and moving costs. The First Home Scheme can also help bridge the gap between your mortgage plus deposit and the purchase price.
Important Disclaimer
This article is for informational purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making major financial decisions.