Buying your first home is an exciting milestone, but it can also feel overwhelming. Between saving for a deposit, understanding mortgage rules, and navigating the approval process, it is easy to feel unsure about where to begin. The good news is that with the right guidance and preparation, your journey to homeownership can be a smooth and rewarding one.
If you are exploring a first time buyer mortgage, here is what you need to know before you apply.
Who Qualifies as a First-Time Buyer?
In Ireland, a first-time buyer is someone who has never bought or built a property before, either individually or jointly, in Ireland or abroad. If you are buying with a partner and either of you has previously owned property, you may not be classified as first-time buyers.
Why does this matter? Because being a first-time buyer comes with certain benefits and schemes that can make getting onto the property ladder more achievable.
How Much Can You Borrow?
The amount you can borrow is determined by Central Bank of Ireland lending rules, which apply to all regulated lenders. These rules focus on two main limits:
1. Loan-to-Income (LTI) Limit
As of 2023 and continuing into 2026, most first-time buyers in Ireland can borrow up to four times their gross annual income. This includes all sources of income that a lender considers stable, such as salary, bonuses, and sometimes rental income.
2. Loan-to-Value (LTV) Limit
First-time buyers are generally required to have a minimum deposit of 10 percent. This means you can borrow up to 90 percent of the property’s value. For example, if you are buying a home worth €300,000, you will need a deposit of €30,000 and can apply for a mortgage of €270,000.
It is important to note that individual lenders may have stricter criteria, so your approved amount could vary depending on your income stability, savings habits, and credit history.
Understanding the Mortgage Application Process
The application process involves several key steps, and being prepared can make things move more quickly and smoothly.
Get Mortgage Approval in Principle
This is a statement from a lender confirming how much they are willing to lend you, based on a preliminary review of your finances. It is not a guarantee, but it gives you a realistic budget when house hunting and shows sellers you are serious.
Gather Your Documents
You will typically need to provide:
- Proof of income (payslips, P60 or employment letter)
- Bank statements (usually 6 months)
- Proof of savings and deposit source
- Identification and proof of address
- Credit card and loan statements
- A completed mortgage application form
Submit Your Application
Once you have a property in mind and your documents ready, your advisor or lender submits your full application. The lender will conduct a credit check and assess your affordability before issuing formal approval.
Government Supports for First-Time Buyers
Several schemes in Ireland are designed to help first-time buyers get on the property ladder.
Help to Buy (HTB) Scheme
This scheme offers a tax refund of up to €30,000 for first-time buyers who are purchasing a new build or building their own home. The refund can be used towards your deposit.
To qualify, you must:
- Be a first-time buyer
- Buy or build a qualifying new home
- Live in the property as your main residence
- Be tax-compliant for the previous four years
First Home Scheme
This shared equity scheme allows the government to provide up to 30 percent of the purchase price (20 percent if also availing of Help to Buy) in exchange for a stake in the property. You can buy back the government’s share later, or when selling the home.
It helps bridge the gap between what you can borrow and the price of the property.
Local Authority Home Loan
For those who may not qualify for a mortgage with a mainstream lender, this government-backed mortgage offers fixed interest rates and is available through local authorities.
Choosing the Right Mortgage for You
As a first-time buyer, you will be offered different types of mortgages, typically:
- Fixed-rate mortgage: Your interest rate and repayments stay the same for a set period, often 3 to 5 years. This gives certainty for budgeting.
- Variable-rate mortgage: The rate can go up or down, depending on market conditions. It may offer lower initial rates but carries more risk.
- Split-rate mortgage: Part fixed, part variable. This gives a mix of stability and flexibility.
Choosing the right option depends on your risk tolerance, financial stability, and future plans. An independent advisor can explain the pros and cons of each based on your situation.
Tips to Strengthen Your Application
- Build a strong savings record by showing regular contributions
- Avoid unnecessary borrowing in the months before you apply
- Keep your current account in good order, with no unpaid fees or missed payments
- Be realistic about your budget and leave room for extra costs like legal fees, surveys, and insurance
- Get advice early, even before you are ready to apply
In Summary
A first time buyer mortgage is a big step, but with the right preparation and support, it does not have to be stressful. Understanding how much you can borrow, what schemes are available, and what lenders are looking for puts you in a strong position to secure your first home.
Getting advice from a qualified mortgage advisor or broker can make the process more manageable and increase your chances of approval. Most importantly, it ensures that the mortgage you choose fits your lifestyle and your long-term goals.
