Homebuying Advice & Inspiration
Mortgage Overview
A mortgage involves borrowing money from a bank or lender to help finance the purchase of a home. In Ireland, most mortgages run for around 25 to 30 years, though the term can vary. The loan is secured against the property until it is fully repaid.
A first-time buyer is someone who has never owned a residential property before, whether in Ireland or abroad.
Most lenders require a minimum deposit of 10%, but some may accept as little as 5%. For example, if you’re buying a home for €300,000, you would need a minimum deposit of €30,000, with your lender covering the remaining 90%—this is known as the Loan-to-Value (LTV) ratio.
In general, having a larger deposit can give you access to better mortgage options and lower interest rates.
Things to know Before Making Your Mortgage Application
A mortgage is a loan from a bank or lender that helps bridge the gap between your deposit and the total price of the property you want to buy. It is repaid in monthly instalments over an agreed term, typically 25 to 30 years.
Your borrowing capacity depends on factors such as the size of your deposit, your income and financial stability and the monthly mortgage repayments you can afford.
Your monthly repayments are determined by the amount borrowed, the type of mortgage, the length of the mortgage term and the interest rate applied.
In general, a larger deposit means lower monthly repayments and can also help you secure a better interest rate. You’ll pay interest on your loan each month, with rates depending on your lender’s terms.
With a wide range of mortgage options available, selecting the best one for your circumstances can be challenging. Understanding the different mortgage types will help you make an informed decision.
What is Stamp Duty?
Stamp Duty is the tax charged by the Government when you buy a home. The current stamp duty rate is 1% for properties valued up to €1 million.
Below are the typical steps to pay Stamp Duty:
Calculate Stamp Duty: Determine the amount based on the property’s purchase price and applicable rates.
Complete Stamp Duty Return: Fill out a stamp duty return form with property and buyer details.
Submit Return: File the form and pay the stamp duty amount to the Revenue Commissioners online or by post.
Make Payment: Pay electronically through ROS or by cheque within 30 days of property document execution.
Receive Stamp Certificate: Upon processing, receive a stamp certificate as proof of payment. This is required for property registration.
