You\u2019ll need to assess your finances, set specific, measurable targets, make a plan of action and regularly review and make changes to your plan where necessary.<\/p>\n
You should aim to borrow what you can comfortably afford to pay back. The less you borrow, the better and the more you save, the less you\u2019ll need to borrow. Even if you\u2019re super eager to get the ball rolling with buying your first home, it\u2019s best to hold off while you accumulate a larger down payment.<\/p>\n
Set up a savings account<\/b><\/h2>\n
Proving that you always have a little extra money in your current account isn\u2019t going to cut it for most lenders. You will need to create a separate savings account.<\/p>\n
Banks will determine your \u2018repayment capacity\u2019. This means they\u2019ll look at things like rent payments and how much you save per week or month. Essentially, they want to see if these expenses are equal to or more than your mortgage costs.<\/p>\n
Also, keep your receipts and a record of dates that you deposit money in your savings account or pay your rent.<\/p>\n
Get Your Irish Tax Refund Now!<\/a><\/p>\n No lender is going to give you money without checking out your credit rating. If you\u2019re unsure of what yours is like, you can request an evaluation from the Irish Credit Bureau for free. This is what the bank will see when they make a request to see it. If there are any mistakes, missed payments, outstanding debts, or incorrect info, you need to amend it as soon as possible. Avoid any short-term loans or credit card debt if possible.<\/p>\n You want to appear to have your sh*t together! If it looks like you\u2019re living pay cheque to pay cheque, a lender isn\u2019t going to like that. Cut out any excessive spending and aim to appear as responsible as possible. Your accounts should reflect sensible money management practices.<\/p>\n If you\u2019re really taking this seriously, delete any apps from your phone (and more importantly your bank statement) that relate to gambling. Whether it\u2019s the lotto or bookies, it doesn\u2019t look good from a lender\u2019s perspective.<\/p>\n Don\u2019t go for the first bank you come across and certainly don\u2019t go with your current bank because there might be a better offer available elsewhere. Be sure to mention you\u2019re shopping around because they might be more inclined to offer you a better rate.<\/p>\n Compare interest rates so you have a clearer picture of what you\u2019ll be paying back. You should consider using a mortgage broker as they will help you build a file and make the process a lot smoother. Not only do they know what\u2019s what when it comes to rates and offers, they get their commission directly from the bank, so you won\u2019t have to pay a fee!<\/p>\n Oh and if you\u2019re offered a competitive fixed-rate mortgage you should definitely consider it.<\/p>\n Getting a mortgage is a very,\u00a0big deal<\/b>. You\u2019re committing to something that will require constant maintenance and attention. You\u2019ll likely be paying it off for decades. If you\u2019re unsure, then don\u2019t sign those papers! The decision to get a mortgage might not be right for you. Take your time and think about things but don\u2019t hesitate to start saving, that way, you have a head start if you do decide to go ahead with it.<\/p>\n If you\u2019re uneasy about getting a mortgage you should consider protection insurance. That way if you or your partner fall ill or are made redundant, you have a safety net to fall back on.<\/p>\n Yes this won\u2019t be an option for everyone\u00a0and\u00a0<\/i>it will likely infringe on your independence and impact your lifestyle but sometimes it\u2019s the only way people can afford to get a deposit together. If your overheads cost less, you can put away more each month.<\/p>\n Particularly in our current climate, rental prices are extortionate in most built-up areas and they are constantly rising. If it\u2019s a viable option, you could consider moving somewhere more remote for cheaper rental prices providing it suits your work situation.<\/p>\n One thing you\u2019ll find when applying for a mortgage is there\u2019s a hell of a lot of paperwork involved! Before you apply, take the time to gather any financial documents; payslips, bank statements, proof of rental payments, and even copies of things like identification is handy to have on hand. The more banks you apply with \u2013 the more paperwork you\u2019ll need to do. Using a mortgage broker will make this part of the process a lot easier.<\/p>\n Otherwise, you can request that the bank make copies of these documents to save you the hassle of needlessly copying and printing a bazillion documents.<\/p>\n You must prove that the money you have is legitimately sourced. Many banks will ask for at very least a record of 6 months of financial history.<\/p>\n We take the hassle out of filing your Irish tax return<\/strong><\/p>\r\n GET STARTED<\/a><\/p>\n Commercial mortgage lenders have a range of rates and products you can avail of, but before you start looking for a new home, you should check and compare different lenders and request a statement of how much they will be willing to lend you. This is known as approval in principle.\u00a0 This will give you an idea of the price range you can consider when looking for a home. This isn\u2019t an official sum for what the lender will give you. That comes later when all the ins and outs have been finalised.\u00a0 You will then receive a letter or offer to seal the deal.<\/p>\n Most banks want to know that you can live comfortably after expenses (that\u2019s your mortgage repayments and other expenses like loan repayments, bills etc.). Generally, there is a figure for disposable income \u2013 this number is around \u20ac2000 per month for married couples \u2013 if you have kids you\u2019ll be looking at paying around an additional \u20ac250 per child.<\/p>\n In 2015, the Central Bank introduced regulations to set limits on the size of housing loans provided by commercial lenders.<\/p>\n Lenders will work out what amount of money they’ll be willing to lend you for your mortgage. Some lenders will give you a multiple of your annual income and others will make sure that your monthly mortgage payment doesn\u2019t go above a set percentage of your take-home income or that you have a certain amount of money to live on each month after you\u2019ve taken care of your other financial commitments.<\/p>\n Mortgage lending limits apply to loan-to-value and loan-to-income (LTI) measurements for principal dwelling homes (PDH), this is a home that you will live in and buy-to-let homes (BTL). These limits don\u2019t replace a lender\u2019s responsibility to consider affordability when assessing a mortgage applicant, they are in addition to the lender\u2019s credit policies.<\/p>\n So what kind of mortgage lending limits can you expect? Let’s break it down.<\/i><\/p>\n Your mortgage provider must give you a European Standardised Information Sheet or ESIS. This sets out all the details of the mortgage offer. This is set out under EU law and must include;<\/p>\n You can always try to avail of various tax reliefs. For instance, if you have a spare room in your home, you might want to avail of the rent-a-room relief<\/a>. This scheme is for people who are renting out a living space in their primary residence. Under this scheme, you can rent out a room (or several) in your home and makeup to \u20ac14,000 combined before being charged any tax. If you go over the \u20ac14,000 mark by even 1 cent, you will be taxed on the whole lot.<\/p>\n In this case, you won\u2019t have a standard tenancy agreement and therefore won\u2019t have the same rights as a standard landlord. You\u2019re not under the same obligations like say providing a rent book or a statement of paid rent. Your accommodation doesn\u2019t have to be up to\u00a0HAP tenant standards<\/a>.<\/p>\n If you\u2019d like to know more about the rules associated with the Rent-a-Room scheme, check out our article here.<\/p>\n Something else that might be of interest to you is the HTB or help-to-buy scheme. It provides first-time buyers with a chance to claim a tax rebate on the Income Tax and Deposit Interest Retention Tax (DIRT) that they paid in Ireland over the previous 4 years. The scheme is backdated to 19 July 2016 and is set to run until 31 December 2019. You can read more on that here<\/a>.<\/p>\nCredit rating<\/b><\/h2>\n
Avoid overdrafts and records of careless spending<\/b><\/h2>\n
![\"Shop](\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Shop-around-for-a-good-rate.jpg\")
<\/p>\nShop around for a good rate<\/b><\/h2>\n
Make sure this is the right decision for you!<\/b><\/h2>\n
Consider moving in with your parents<\/b><\/h2>\n
Start getting all of your documents in order<\/b><\/h2>\n
Approval in principle<\/b><\/h2>\n
![\"Disposable](\"https:\/\/taxback.com\/blog\/wp-content\/uploads\/2025\/01\/Disposable-income.jpg\")
<\/p>\nDisposable income<\/b><\/h2>\n
Mortgage lending limits<\/b><\/h2>\n
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What to look out for when deciding if the offer is suitable? <\/b>\u00a0<\/b><\/h2>\n
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Tax Reliefs<\/b><\/h2>\n