Author: Sarah Coan

Ultimate Moving Home Checklist 2023
Moving into a new home can be a daunting process, leaving many people unsure where to even get started. That’s why we at moneysherpa have created this short and simple “Moving Home checklist”, to help those who are moving home stay organised and make the process of moving home as straightforward as possible.

Moving Home Checklist: What to do before your Moving Day.

We’re all prone to a little procrastination here and there, however when it comes to moving home it’s best to plan ahead and get started as soon as possible. Here’s a short checklist of what you can do ahead of your moving day to help make the moving process as stress free as possible:
- Confirm your moving day with your solicitor, conveyancer, and landlord if you are renting.
- Research van hire/removal companies. Once you think you’ve found the best one and have confirmed your moving date, get a quote and book as soon as possible to get the best price.
- Try to create a daily packing rota, where you allocate a small period of time each day to tick things off your packing list. This way you won’t become overwhelmed by the time your moving date comes around.
- Declutter and clear your things out. Moving home is a great opportunity to sort through your belongings and donate, sell, or dispose of items you no longer need.
- Start packing. Make sure you have enough boxes, labels, bubble wrap and packing tape ahead of time. If you’re enlisting the help of professional movers, check in with them before your moving date to make sure that everything is in order. Make sure to label your boxes so you won’t be struggling to find things once you’ve moved into your new home.
- Make an “Essentials Box.” It might be a good idea to pack up a box with all your essentials, like toiletries, a change of clothes, and basic kitchen items for the first day at your new home.
- Notify service providers. It’s important to notify your utility companies and other service providers about your move and what your new address will be. This includes:
  - Waste Services.
  - Your gas, electricity, and water provider.
  - Your broadband, landline, and TV provider.
  - Your mortgage provider.
  - Your insurance provider if you have home insurance.
  - Government offices, for instance the Revenue Commision.
  - Schools or employers.
- Redirect your mail with An Post so that your mail will be posted to your new address. You will need to do this at least five days before your move. We’ve attached a link which will take you to the An Post page where you can redirect your mail here.
- Clean and fix any damage to the property. If you rent, carefully check any instructions provided by your landlord for leaving the property.
Moving Home Checklist: What to do on your Moving Day.

With the right preparation beforehand, your moving day shouldn’t be too much hassle. Here’s a quick checklist of what you need to do on the day of your big move:
- Take a Meter Reading. It’s important you take readings of all your metered services before you leave the property.
- Supervise the Move. If you are hiring movers, be present to oversee the loading and unloading process.
- Do a Final Check. Walk through your old home to ensure you haven’t left anything behind.
Moving Home Checklist: What to do once you’re moved in.

Once you’ve moved into your new home, it’s important to:
- Ensure utilities are connected at your new home, and set up new services if needed.
- Update your Address. Once you’ve moved in, you will need to update your address with the relevant organizations. Here’s a list of who you should inform of your move:
  - Your mobile phone provider.
  - Your bank and any other financial services your subscribed to.
  - Your insurance provider.
  - Health services, such as your GP.
- You will also need to update the address on your drivers licence, passport, and vehicle registration.
In a nutshell: Moving Home Checklist.

Moving house requires careful planning and coordination, so make sure to give yourself enough time to prepare ahead of time. It’s important to make a checklist of what needs to be done before you move, when you move, and after you’ve moved to make the process of moving home as straightforward as possible.

If you are looking to get a mortgage or switch to a new one for your new home, you can book a free call with one of our qualified mortgage advisors here.
August 28, 2023
Self Build Mortgage Ireland 2022 – Ultimate Guide
A self build mortgage Ireland can help you get started on the exciting process of building your own home.

In this article we go over what a self mortgage Ireland is and tell you everything you need to know before applying for one.
What is a Self Build Mortgage Ireland?

A self-build mortgage Ireland is a mortgage for people building their own home.

Building your own home can be a long and difficult process, but can be very rewarding in the long-run. Many chose to build their own home as it can turn out to be cheaper than already built homes on the market.

What you need to know before applying for a Self Build Mortgage Ireland

One of the key differences between a self build mortgage and your standard mortgage is that the funds for a self build mortgage are given out in stages of your home being built.

As your funds are in stages, you only have to pay interest on the funds you have already drawn down, not the whole amount of the mortgage.

How much can I borrow for my Self Build Mortgage Ireland?

Generally, lenders will allow you to borrow 3.5 times your gross income for your self-build.

You need 10% of the total build and site cost for a deposit.

It’s also important you have around 10% of the value of your build saved on top of your deposit to cover any unforeseen costs. The lenders will look for proof of this contingency fund.

What do I need before applying for a Self Build Mortgage Ireland?

Before applying for a self build mortgage Ireland, you will need to;
1. Find a site to build your property
2. Get planning permission for both;
- The property itself
- Construction of the property
Note that lenders will not give you the funds until you’ve obtained planning permission. They will also not help fund the cost of getting planning permission.

You can find more information on how to get planning permission on the Citizens Information Website here.

How much of a deposit do I need for my Self Build Mortgage Ireland?

First time buyers need a 10% deposit, with a maximum Loan to Value (LTV) of 90%.
- Loan to Value: Value of your mortgage compared to the value of your build.
This LTV is based on the cost of the site along with the cost of construction, or 90% of the site value once it has been completed, whichever is lower.

Second time buyers need a 20% deposit, with a maximum LTV of 80%.

However, many lenders allow you to use the site as a deposit if you already own it.

If you are gifted the site, this can count toward your deposit, so for example if your site is worth over 10% of the combined build and site cost, then you can borrow a 100% for your build.

How do I get started on my Self Build Mortgage Ireland Application?

Once you have a site and planning permission, you can get started on your self build mortgage application.

Only certain lenders offer self build mortgages, Haven, Permanent TSB and Bank of Ireland.

Rates are the same as for first time buyers or movers, check out the comparison below for all the lenders who currently offer self builds.

[mortgage_rates_self_build]

You should talk to a mortgage broker to help you choose which lender is best for your particular build.

You will need the following documents to get started;
- Evidence of contribution
- Full Planning permission
- Map of site
- Estimates of building plans and costs
- Fixed Price Contract
Once you have these documents in order, you will get an initial offer from a lender.

After your self build mortgage Ireland is approved, you will begin to receive funds that correspond with the stages of your property being built.

There are generally 4-6 stages depending on your build, which can include;
1. Buying the site
2. Substructure
3. Completion of roof
4. Completion of floor
5. First and Second fix
6. Certified completion
Depending the length of your building period, these stage payments are generally spread out over 18 months.

Advantages and Disadvantages of a Self Build Mortgage Ireland

Advantages
- Government Incentives
  - Self Builds are included in the Help to Buy scheme offered by the Irish Government. If you are a first time buyer and plan on building your home by December 2022, you may be eligible to benefit from this scheme.
  - You can read more about the Governments Help to Buy Scheme here.
  - Unfortunately the new First Home Equity scheme is not currently available for self builds.
- Lower costs
  - Usually building your own home will turn out to be cheaper in the long run, as it can cost less than many already built homes on the market.
Disadvantages
- Time and effort required
  - Building your home takes much more time and effort than finding an already built home.
  - It requires a serious amount of planning and can be a very long process.
  - You have to plan out all aspects of the build such as finding an architect, getting planning permission, finding a site, finding a mortgage that best suits you, etc.
- Risks attached
  - There are many risks that come with building your own home, such as construction taking longer than expected or going over budget.
In a Nutshell, Self Build Mortgage Ireland

In short, the process of building your own home can be exciting and very rewarding in the long run, with self build mortgages there to help you get started on your self build journey.

However it’s important to consider the risks attached with building your own home, and make sure you carefully plan your expenses to avoid going over budget.

We recommend speaking to a mortgage advisor before starting your self build journey, so you can plan ahead and make this process as stress-free as possible.

Next Steps

Start your application online with moneysherpa here.

You can book a free, no obligation video chat with the mortgage sherpa team here.

Read more about the mortgage sherpa team here.
September 2, 2022
Buy to Let Mortgage Ireland – Ultimate Guide 2023
The Buy to Let market and property investment has huge potential in Ireland. That’s why there’s lots of interest in getting a Buy to Let Mortgage Ireland 2023 for those looking to invest. But, what’s needed and how do you get the best deal? Check out our Buy to Let Mortgage Ireland Ultimate Guide 2023.

In this article, we discuss what a Buy to Let Mortgage also known as a Buy to Rent Mortgage is, how it works, how to apply, and some more investment property points you should know before deciding to apply for one.
What is a Buy to Let Mortgage? Ireland Ultimate Guide 2023

A Buy to Let Mortgage is a mortgage for people who are looking to purchase a property to rent out to others. Usually as an investment property to give a steady income. Ireland’s approach to other asset classes makes property one of the few options offering steady returns that are relatively tax efficient.

How does a Buy to Let Mortgage Work? Ireland Ultimate Guide 2023

Unlike your standard mortgage, with a Buy to Let Mortgage you can opt for your monthly repayments to pay off just your interest instead of your capital.
- Capital: The money you borrowed from a lender
- Interest: What you pay a lender for borrowing money
With this kind of Buy to Let Mortgage, your monthly repayments pay for the interest on your loan. This means you will have more money in the short-term, as you’re only paying off your interest instead of your capital on the investment property.

However once your mortgage has reached the end of its term, you must pay off the mortgage capital in full. This is why many choose to remortgage or sell their investment property once the mortgage has reached the end of its agreed term. The hope is that the capital will have appreciated during the term so it can be used to pay off the mortgage leaving a profit left over.

Alternatively you can decide to use your repayments to pay both the interest and the capital so you are reducing the risk of you not being able to recoup the capital due to a fall in the property market.

The value of your Buy to Let Mortgage depends on how much you plan on charging the residents living in your investment property. If you’re planning on renting out a decent sized property in a good location and are able to charge a higher rent, you can apply for a larger Buy to Let Mortgage.

How much will my deposit be on a Buy to Let Mortgage Ireland? Ireland Ultimate Guide 2023

The deposit on a Buy to Let Mortgage Ireland is around 25%-30% of your investment properties value. Deposits on Buy to Let Mortgages Ireland are high, as lenders consider them more high risk.

Whilst 25%-30% is a large sum of money, the bigger your deposit is the more likely you are to be approved for a Buy to Let Mortgage and get a better rate.

It’s important to take the cost of your deposit into account when applying for a Buy to Let Mortgage Ireland.

How do I apply for a Buy to Let Mortgage Ireland? Ireland Ultimate Guide 2023

After putting down your deposit, your lender may ask you to provide;
- Evidence of income
- Credit history
There are a few extra details needed for a Buy to Let Mortgage Ireland. Your bank may ask how much you’re planning on making from rent, as well as the details of the investment property you’re planning on purchasing.

Ultimately, lenders are looking to see if you are able to repay the Buy to Let Mortgage by taking all these factors into consideration.

Only certain lenders provide Buy to Let or Investment property mortgages and rates are higher than for standard mortgages. This is because the banks see investment property mortgages as a higher risk than a standard residential mortgage.

You can get both variable and fixed Buy to Let mortgages, to make things simpler though we have shown a comparison of just variable rates below. Even if you are fixing for a few years the variable rate is still important as it is the rate you will go onto at the end of your fixed period.

[mortgage_rates_btl_5yr]

Will I be charged Stamp Duty on my Buy to Let Mortgage Ireland? Ireland Ultimate Guide 2023

According to the Revenue Commission, the current Stamp Duty rates as of 2022 are;
- 1% up to €1,000,000
- 2% on anything after €1,000,000
However if you buy more than 10 Buy to Let investment properties, you will be charged 10% Stamp Duty on the total amount of your investment properties. This rate was introduced to put off the so called ‘cuckoo funds’ buying up large amounts of properties to rent.

You can read more about the Revenue Commission Stamp Duty rates here.

Advantages and Disadvantages of a Buy to Let Mortgage Ireland – Ultimate Guide 2023

If you are considering getting a Buy to Let or Buy to Rent Mortgage, it’s important to consider some of the advantages and disadvantages.

Advantages
- Investing in the right property can lead to a high return on investment if the property increases in value, making a Buy to Let Mortgage very worthwhile in the long run.
Disadvantages
- There is an increased Stamp Duty rate for people looking to buy investment properties to rent.
- There are many potential issues that come with renting out an investment property, such as;
  - Periods of rental lost between tenants
  - Damage to the property
  - Tenants failing to pay rent
- If you have to sell the investment property and the sale price doesn’t cover the mortgage capital, you will have to cover the rest yourself. This is why it’s important that you don’t rely on selling the property to pay off the mortgage capital.
Summary: Buy to Let Mortgage Ireland Ultimate Guide 2023

In short, purchasing a Buy to Let investment property to rent out can be a great way to make money, and can lead to a major return on investment.

However, it’s important to consider the risks attached with becoming a landlord and renting out your investment property to others.

It’s important to take all the expenses and ongoing costs of a Buy to Let Mortgage into consideration. Always be as financially prepared as possible, as rent is not always guaranteed and neither is your investment property going up in value.

This is why we recommend you seek advice from a professional before applying for a Buy to Let Mortgage Ireland.

Next Steps Ireland Ultimate Guide 2023

If you’re thinking about becoming a landlord and looking to get started on your Buy to Let Mortgage application, you can contact one of our QFA money sherpas and get an online consultation free of charge.

You can learn more about Stamp Duty here.

Read more about the mortgage sherpa team here.
September 1, 2022

Getting The Best Mortgage Advisor – Ultimate Guide Ireland 2022

The process of applying for a mortgage can often be very daunting and filled with uncertainty, but not if you get the right mortgage advisor. Find out what to look for with our mortgage advisor ultimate guide Ireland 2022.

In this article, we aim to outline what a mortgage advisor is, why you should consider going to one, and how to find the best one for you.

What is a Mortgage Advisor?
Why should I go to a Mortgage Advisor?
How do I find the right Mortgage Advisor for me?
Summary Mortgage Advisor Ultimate Guide Ireland 2022

Top Mortgage broker comparison

Broker	Free	Google Rating	All Lenders	Partner Solicitor	One on One Service	Recommended by BestinIreland.com
moneysherpa	✓	4.9	✓	✓	✓	✓
Irish Mortgage Corporation	✓	4.9	✓	✗	✓	✓
Doddl	✓	4.8	✓	✓	✗	✗
mortgages.ie	✓	4.6	✗	✗	✗	✗
Switcheroo	✓	4.8	✓	✗	✓	✗
Local Brokers	€100-€500	✗	3-5	✗	✓	✗

_{Updated 10/03/2024}

What is a Mortgage Advisor? Ultimate Guide Ireland 2022

A mortgage advisor is a qualified professional who aims to find the best mortgage deal for you given your personal circumstances.

With over 250 mortgage products offered by 9 different lenders in Ireland, it’s no wonder so many struggle to find the best mortgage for them, and end up going with a mortgage that could lose them thousands in the long run.

A mortgage advisor will help you work out how much you can afford to borrow and use their knowledge of the market to find the best deal available.

When looking for the best deal out there, a good mortgage advisor will;

Talk with you to figure out what you can afford to borrow given your financial situation

Search the market for the best deals available

Compare deals offered by lenders

Tell you about different deals to help you find one that best suits you

Why should I go to a Mortgage Advisor? Ultimate Guide Ireland 2022

There are many benefits to seeing a mortgage advisor, as a good mortgage advisor will;

Look at your financial circumstances to find a deal that best suits you

Use their knowledge of lenders to find ones that are right for you

Access exclusive deals not available directly

Help you with the paperwork that comes with applying for a mortgage

Help you find a deal that you are likely to get

A mortgage advisor can help lift the burden that comes with applying for a mortgage.

By using their connections and knowledge of the market, mortgage advisors can help find a deal that is affordable and right for you.

Finding a deal yourself can be a long and difficult process. Mortgage advisors are there to save you time and effort, and may even be able to find you a deal you can’t on your own.

How do I find the right Mortgage Advisor for me? Ultimate Guide Ireland 2022

There are many factors you should take into consideration when looking for a mortgage advisor, such as;

Type of mortgage advisor

Mortgage advisors can either act independent or work on behalf of a lender. It’s important to know if you’re mortgage advisors is working for a financial institution, as this can impact their advice.

It’s also important to see how many lenders your mortgage advisor works with, as mortgage advisors who only work with a certain amount of lenders can only offer you a limited amount of deals.

An independent mortgage advisor will show you deals from many different lenders as they are not tied to only one, meaning you can choose from a wider range of lenders and deals.

Fees

Some mortgage advisors will not charge their clients, as they’re paid a commission based on the value of their clients mortgage once it has gone through.

Yet some mortgage advisors may charge their clients a flat fee of €100-€150. Other advisors may charge their clients a commission based on a percentage of their mortgage. This can be a problem if you are looking to take out a large mortgage.

Always ask mortgage advisors about their fees before deciding who to go with.

Qualifications

It’s important to find out what qualifications your potential mortgage advisor has. Before going with a certain advisor, check that they;

Are a Qualified Financial Advisor (QFA)
Are an Accredited Product Adviser (APA)
Are registered with the Central Bank of Ireland

It’s vital that the advisor you go to has the right qualifications to give you accurate financial advice when it comes to your mortgage.

Find out more on how the Central Bank regulates mortgage advisors here.

Summary – Mortgage Advisor Ultimate Guide Ireland 2022

In short, mortgage advisors are professional financial advisors who are there to act in your best interests and find the best mortgage for you.

Mortgage advisors help ease the stress of applying for a mortgage by figuring out what you can afford to lend, getting and comparing deals from lenders and finding the best one for you.

Next Steps – Mortgage Advisor Ultimate Guide Ireland 2022

Broker	Free	Google Rating	All Lenders	Partner Solicitor	One on One Service	Recommended by BestinIreland.com
moneysherpa	✓	4.9	✓	✓	✓	✓
Irish Mortgage Corporation	✓	4.9	✓	✗	✓	✓
Doddl	✓	4.8	✓	✓	✗	✗
mortgages.ie	✓	4.6	✗	✗	✗	✗
Switcheroo	✓	4.8	✓	✗	✓	✗
Local Brokers	€100-€500	✗	3-5	✗	✓	✗

_{Updated 10/03/2024}

We at moneysherpa have qualified financial advisors on hand to help you find the best mortgage deal for you. If choose moneysherpa as your mortgage advisor, you will;

Get our expert opinion free of charge

Have a wide range of options from a wide range of lenders, as we act independent from financial institutions

Have your paperwork dealt with digitally in one of our free online calls

Get comprehensive advice on all your options to find the best deal to suit your personal circumstances

Get our lifetime best rate guarantee, meaning our sherpas will always check the market to switch if we find a better deal for you

Have all your questions or queries answered by our team of professional mortgage advisors

Start your application online with moneysherpa here.

You can book a free, no obligation video chat with the mortgage sherpa team here.

Read more about the mortgage sherpa team here.

August 30, 2022

Help To Buy Scheme Ireland 2024 – Ultimate Guide to Boosting Your Deposit
The Help to Buy Scheme Ireland 2024 allows first time buyers in Ireland to claim 10% of the value of their property, which can be anywhere up to €30,000.

In this article, I will be going into detail about how the Help to Buy scheme (HTB scheme) works, what you have to do to qualify, how much can be available to you, how to get your taxes refunded, how to get up to date on your taxes so you can qualify, and finally how to apply.

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1.How does the Help to Buy scheme Ireland 2024 work?

2. How do I know if I qualify for the Help to Buy scheme Ireland 2024?

3. How much is available to me from the Help to Buy scheme Ireland 2024?

4.How will I receive my tax refund from the Help to Buy scheme 2024?

5.How can I get up-to-date on my taxes for the Help to Buy scheme Ireland 2024?

6.How can I apply to the Help to Buy scheme Ireland 2024?

7. A summary of The Help to Buy scheme Ireland 2024.

How does the Help to Buy scheme Ireland 2024 work?

The Help to Buy scheme Ireland 2024 is a Government tax refund scheme.

The HTB scheme allows first time buyers to claim 10% of their property value to help them pay deposits on newly built homes.

This HTB incentive offered by the Irish Government lasts until the 31st of December, 2024.

In order to claim from the Help to Buy scheme Ireland 2024, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home.

This refers to Income Tax and DIRT. You cannot claim from USC or PRSI.

Don’t worry too much if you feel that you haven’t paid enough tax to qualify, as in actual fact most people in Ireland likely have paid 10% of their property tax within 4 years and can therefore apply to have their tax refunded for their new home under the Help to Buy scheme.

How do I know if I qualify for the Help to Buy scheme Ireland 2024?

Even if all your taxes are up to date, there are still some more conditions that you need to take into consideration before applying to the HTB scheme.

In order to qualify for the HTB scheme, you must-
- Be a first time buyer in Ireland and outside of Ireland
- Be moving in with an applicant who is also a first time buyer if more than one person will be purchasing the home, ie) if one applicant is not a first time buyer then you cannot qualify for this scheme
- Be moving into a newly built or self built home
- Be using the property as your principal private residence for 5 years
- Be moving into a home that isn’t a conversion or restoration, however a conversion of a non-domestic home into a domestic home can qualify
- Be moving into a home worth less than €500,000
- Have a solicitor or contractor registered with the Revenue Commission
- Have a mortgage with a loan to value of 70%. For example, if you are purchasing a home worth €200,000, your mortgage must be €175,000.
What rules you out
- Don’t pay for home in cash.
- Don’t be an investor or landlord.
- Don’t use the property for investment purposes.
While it may seem that there are many conditions to the HTB scheme, remember that this incentive is to help first time buyers get on the property ladder.

Therefore if you are a first time buyer and have been tax compliant in the 4 years before moving into your new property, you will most likely be able to qualify for the HTB scheme.

How much is available to me from the Help to Buy scheme Ireland 2024?

Under the Help to Buy scheme Ireland 2023, first time buyers can claim,
- 10% of the purchase price of their new build, for example a home worth €200,000 can claim €20,000.
- The amount of Income Tax and DIRT paid in the previous 4 years before moving.
Or for self-builds,
- 10% completion value of their self-build home.
In order to claim from the Help to Buy scheme, your home must be valued at €500,000 or less.

The most you can claim from the HTB scheme is €30,000, meaning that even if your home is valued at more than €300,000, you still can only receive €30,000 max.

Value of property Rates Total claim received
€300,000 10% €30,000
€400,000 10% €30,000- cannot receive more than €30,000.

How will I receive my tax refund from the Help to Buy scheme 2024?

So if you qualify for the HTB scheme, your tax refund will be paid to you depending on your property.

If you buy a new build after 1 January 2017 (4 years ago), the refund is paid directly to the builder.

If you self-build the property after 1 January 2017, the refund is paid to a bank account you hold with your loan provider.

This money can be used to help first-time buyers cover the costs of their deposits.

How do I get my taxes up to date for the Help to Buy scheme Ireland 2024?

In order to claim from the Help to Buy scheme, you must be fully tax compliant and all your taxes must be up to date.

However if your taxes are not up to date, you must complete a Form 12 if you are a PAYE earner or a Form 11 if you are self-employed.

You must fill out these tax forms in the 4 year period before you move into your new home and pay any outstanding taxes.

How can I apply to the Help to Buy scheme Ireland 2024?

If you think you qualify for the help to buy scheme Ireland, then you should go to Revenues MyAccount service, where you will be told how much tax refund is available to you as well as apply.

In a Nutshell – Help to Buy Scheme Ireland 2024

In short, the Help to buy scheme 2024 is a great incentive for new first time buyers who are looking to find their way into today’s housing market.

If you are looking to buy a new home as a first time buyer then the Help to Buy scheme is designed to help you.

That is why we at moneysherpa believe you should check to see if you’re eligible for this scheme and apply as soon as you can before it ends on the 31st of December, 2024.

Next Steps – Help to Buy Scheme Ireland 2024

Wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge or you get provisional approval in 5 minutes with our instant approval calculator, so you can get going and view some properties!

Get Instant Approval from moneysherpa Now

If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.
September 1, 2021
Stamp Duty Ireland 2023- What is Stamp Duty & Why You Need to Know About It
So what is stamp duty Ireland and do you need to pay it? Stamp duty is a tax that is paid when a property has been transferred from one person to another.

When someone transfers their property onto you, you become the property owner and are charged a stamp duty tax.

Stamp duty is a tax charged on written documents that transfer ownership of land from one person to another. Stamp duty applies to all residential and non-residential properties.

The amount of stamp duty you pay depends on how much your property is worth; so the more valuable your property, the more stamp duty you’ll pay.

In this article. I am going to be breaking down what stamp duty applies to, how it is calculated, the exemptions to stamp duty, will stamp duty be charged on new buildings, the new higher rate introduced in Ireland in 2022, the charges associated with stamp duty, stamp duty in regards to gifts and inheritance and an overall summary of stamp duty.
1.What does stamp duty Ireland apply to? Stamp Duty Ireland 2023

Stamp duty will be applied every time you become a property owner. It applies to all properties, whether they be brand new or second hand. However new builds will not be subject to VAT, I go into this in more detail here.

Stamp duty applies to all residential properties such as houses, apartments or sites that will be used for buildings .

It also applies to non-residential property, such as land or housing sites without residential buildings.

2. How do I calculate stamp duty? Stamp Duty Ireland 2023

In Ireland ,stamp duty is levied at 1% up to €1 million. Any property over €1 million is levied at 2%.

Here’s an example excluding VAT-

Lets say you have a property worth €2 million.

First €1 million 1% €10,000
Remaining €1 million 2% €20,000
Total stamp duty €30,000

For non-residential properties, stamp duty is charged at 6%.

So what is the difference between residential and non-residential properties?

To put it simply, a residential property is one suitable for dwelling, such as a home or an apartment. Stamp duty is charged at 1-2% for residential properties.

Don’t worry too much about calculating the stamp duty of your own property, as your solicitor will do this for you.

However, it’s still good to know roughly how much stamp duty you will have to pay before purchasing a property.

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3.What exemptions are there to stamp duty Ireland? Stamp Duty Ireland 2023

Of course there are a few exceptions where you don’t have to pay stamp duty.

There is no stamp duty charged on the transfer of property between-
- Spouses and civil partners.
- Former spouses (divorced).
- One cohabitant to their other cohabitant.
If you are buying a home under the local authority tenant purchase scheme you will only be charged €100 worth of stamp duty.

4.Is stamp duty Ireland charged on new builds? Stamp Duty Ireland 2023

For new builds, stamp duty is still paid, however it is calculated differently. For new builds you will be charged stamp duty on the value of the home and VAT will not be included.

Here’s an example-

The standard rate of VAT is 23%. Let’s say we have a property worth €450,000. 23% of €450,000 is €103,500. This means that before VAT the value of the home was €346,500. Hence our 1% stamp duty tax will be charged on the €346,500, not the €450,000.

This only applies to new builds, not 2nd hand properties.

5.What is the higher stamp duty Ireland rate that has been introduced? Stamp Duty Ireland 2023

In July 2021, an act was introduced that charges 10% stamp duty on property owners who have bought 10 or more properties within one year after the 20th of May 2021.

This act was introduced to stop the bulk buying of homes in Ireland and to discourage investment funds from buying up housing estates, so first time buyers are given a chance to purchase a home.

This higher rate does NOT apply to apartments. It also does not apply to homes bought for social housing purposes.

6.What are the costs involved with stamp duty Ireland? Stamp Duty Ireland 2023

Your solicitor will calculate how much stamp duty is due for you before the sale is closed. This stamp duty is paid to the Revenue Commission and a stamp is placed on the deeds of the property.

Whilst having a solicitor to do all the hard paper work for you is a huge help, it does come at a price.

The price of a solicitor to guide you through this process will vary. Some solicitors will charge a flat fee, whilst some will ask for a % value of the property, such as 1 or 2%.

You should be prepared to spend between €1000-€3000 in legal fees along with VAT.

This is why it is important to research a good solicitor that will get the job done at a reasonable price before thinking about transferring properties. Check out more on solicitor fees here.

7. Do I have to pay stamp duty Ireland on a property I inherited or was gifted? Stamp Duty Ireland 2023

According to the Revenue Commission [1] , if you are given a property as a gift that is situated in Ireland and the property has been transferred to you then yes, you will still have to pay stamp duty

However you will NOT have to pay stamp duty on a property that you have inherited, such as a property left to you in a will.

In a Nutshell – Stamp duty Ireland 2023

So in summary, stamp duty is a major factor to take into consideration when you are planning on buying a property.

It is important to remember that between buying the property, solicitor fees as well as stamp duty, buying property requires a lot of money. Hence you should thoroughly research how much a property will cost you and put a lot of thought in before you start enquiring.

From this article, you should hopefully have a better understanding of how stamp duty is calculated and what factors you should keep in mind before looking about buying a new property.

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What’s Next? Stamp Duty Ireland 2023

If you have any more questions about stamp duty or buying a new property feel free to book an appointment with our financial advisors here at moneysherpa free of charge here.

If you want to see what you could save by calculating your repayments and see all mortgage provider rates you can click here.

If you want to know more about other mortgage providers you can click here .

If you want to know more about longer term fixed rates, you can check out our deep dive best fixed rate mortgage piece here or how fixed versus variable compares here.

If you want to know more about switching you can click here. Or you can check out our handy switching mortgage guide here and our remortgaging guide here. If you still have questions check out our switching Q&A here.

If you are thinking of freeing up some extra cash from your home, take a look at our mortgage top up tips here or if you are over 55 our equity release rundown here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.
August 29, 2021
APRC, the Ultimate Guide. What It Is and Why It Could Save You €20,000+.
So what is Annual Percentage Rate of Change, (APRC) ? While it may seem confusing at first, APRC is a helpful tool that shows us the true cost of mortgages, so we can compare them to find the cheapest option. That’s why the CCPC [1] recommends using APRC to compare mortgages.

APRC is a really handy guide that tells us which mortgage is the best value for money if we see it through. APRC takes all costs involved in a mortgage and converts it into a percentage. This percentage shows us how much a mortgage costs after every factor is taken into consideration.

This is really helpful when trying to find the best mortgage available, as all you have to do is look at the APRC percentage. The lower the percentage, the cheaper the mortgage is if it’s paid off completely.

In this article, I will be discussing APRC in a bit more detail to help you better understand how it works, why it is useful to us, the difference between APR and APRC, how APRC is calculated and finally, how to get a loan with low APRC.
1.What is APRC?

Annual Percentage Rate of Change (APRC) is a useful tool when comparing mortgages. It shows us the total cost of a mortgage when all factors are taken into consideration.

Factors such as fees and interest rates will greatly affect how much your mortgage will cost you overall.

APRC will take all these factors into consideration to show us in percentage form how much a mortgage with a particular lender will cost us if we see the mortgage through to the end.

It helps us see at a glance which mortgage provider offers the best mortgage to us after all costs have been taken into consideration. Remember; the lower the APRC rate, the cheaper the mortgage.

2.Why is APRC useful?

Marketers will often try to persuade homeowners into buying a specific mortgage with attractive offers such as low starting interest rates or cashback.

However, once you take the different factors into consideration, such as high variable rates introduced after the introductory period is over, you may soon discover that a once appealing mortgage is in reality quite expensive compared to other lenders.

APRC helps homeowners compare mortgages from different lenders and prevents them from being swayed by attractive starting rates and other misleading factors.

Let’s look at an example. Say a homeowner wants to mortgage a house worth €150000 and has a deposit down of €30000. APRC will help us see out of these 2 mortgages which is this best value for €120000.

Mortgage A Mortgage B
Starting Rate 0.99% for 24 months 1.39% for 24 months
Standard Variable Rate 4.99% for 23 years 4.75% for 23 years
Fees up front €160 0

At a glance, many may think that Mortgage A is the best option, as it offers a much cheaper starting rate.

However, as APRC will tell us, Mortgage B is in fact the better option, as it offers a lower standard variable rate than Mortgage A , as well as no fee up front.

Mortgage A Mortgage B
Overall cost €245,559 €238,332
APRC 4.5% 4.2%

Because Mortgage B’s APRC percentage is lower, it means that it is the cheaper option, saving you €7,227 over the lifetime of the mortgage.

3. What is the difference between APR and APRC ?

It’s very easy to get confused between APR and APRC, as they are similar in name and in meaning.

Annual Percentage Rate (APR) works in a similar way to APRC, as it helps us compare the total cost of loans and credit. APR shows a percentage of how much interest the borrower pays on a loan, such as a mortgage, per year.

Annual Percentage Rate of Change shows a percentage of the total cost of a loan such as a mortgage after all factors are considered.

In comparison to APR, APRC doesn’t just show us the cost of a loan after one year, instead it shows us how much the loan will cost us once it’s paid in full.

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4.How is APRC calculated?

APRC takes a variety of different factors into consideration, such as broker fees and different interest rates, to calculate how much your mortgage will cost you for the full period of the loan.

One vital piece of information that you must remember when looking at different APRC percentages on loans is that APRC takes all factors into consideration assuming that you will see this loan out until it has been PAID IN FULL.

APRC shows how much you will pay over the full term of the mortgage, meaning APRC is not useful if you are considering moving house or switching lenders.

So before you decide to look at different APRC percentages to help decide what the best mortgage for you is, consider certain factors, such as how long will I stay in this property? What life events are likely to happen in the near future that will affect my living situation?

If you think that you may be switching mortgages or moving property in the near future, APRC therefore might not be as important. This is because as you are planning to pay off the mortgage early and get a new one when you switch or move the introductory rate will apply for a larger proportion of the loan than shown in the APRC which assumes you will have the mortgage for the full term.

This is why although not making sense for everybody cashback and low introductory rates are a good option for those looking to switch regularly.

5. How do I get a loan with a low APRC?

Getting your loan with APRC is influenced by a variety of factors like:

The amount of available equity in your property– If you have a lot of available equity in your property and apply for a smaller loan, you are less of a risk to your lender, therefore earning a better interest rate bringing your APRC percentage down.

How much you want to borrow– The more you borrow, the lower rate you’ll be paying which again affects your APRC, as APRC assumes you will stay with this mortgage until it is paid in full.

The length of the mortgage- The longer your mortgage is the less you will pay per month, as the payments are stretched across a longer period of time.

Size of deposit– The more money you have in your deposit on a house, the lower the interest rate, as you are not seen as a risk to the lender.

Here’s the current APRC’s for a 4 year fixed rate compare.

[mortgage_rates_4yr_ltv_compare]

6.Summary – APRC

So to summarise, when you think APRC, remember-

APRC is a tool to help you compare mortgages and find the best mortgage available.

The lower the percentage, the cheaper the mortgage is once it’s paid full term.

APRC shows percentages assuming you will stick with one particular mortgage to the end.

Always predict changes in your living situation in the near future before thinking about using APRC to find the best mortgage.

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What’s next?

If you have any more questions about stamp duty or buying a new property feel free to book an appointment with our financial advisors here at moneysherpa free of charge here.

If you want to see what you could save by calculating your repayments and see all mortgage provider rates you can click here.

If you want to know more about other mortgage providers you can click here .

If you want to know more about longer term fixed rates, you can check out our deep dive best fixed rate mortgage piece here or how fixed versus variable compares here.

If you want to know more about switching you can click here. Or you can check out our handy switching mortgage guide here and our remortgaging guide here. If you still have questions check out our switching Q&A here.

If you are thinking of freeing up some extra cash from your home, take a look at our mortgage top up tips here or if you are over 55 our equity release rundown here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.
August 19, 2021
What is a Green Mortgage Ireland and why should I consider applying for one?

Green Mortgage Ireland. As the world is becoming more environmentally conscious, so are mortgage lenders. Green mortgages are slowly becoming more and more popular as they are a great incentive to make our homes more energy efficient, which will help us save money as well as our planet.

Here at moneysherpa, we have looked at the different Green Mortgages Ireland, as well as the requirements necessary for a Green Mortgage in Ireland. We have also put together some useful ways you can make home more energy efficient to impress Green Mortgage providers.

In this article, I will be discussing why you should consider applying for a Green Mortgage, what you have to do in order to apply for one, what you can do to make your home more eligible for a Green Mortgage and overall, are Green Mortgages worth the time and effort required?

1. Why should I consider applying for a Green Mortgage Ireland ?

2. What do I need to do to apply for a Green Mortgage Ireland ?

3. How can I make my home more energy efficient? – Green Mortgage Ireland

4. Final verdict – Green Mortgage Ireland.

1. Why should I consider applying for a Green Mortgage Ireland?

As I have mentioned previously, a Green Mortgage acts as an incentive to encourage people to make their homes more environmentally friendly. Lenders will offer certain rewards such as lower interest rates to homeowners whose homes are considered energy efficient.

Many lenders such as Bank of Ireland and Ulster Bank all offer lower interest rates for homeowners applying for a Green Mortgage.

Haven Mortgages have offered a 2.15% fixed rate on homes that they believe to be energy efficient, as well as offering €2000 to cover legal costs.

Haven have stated that homeowners with an existing mortgage of €300,000 on a €350,000 home could save up to €3,204 per year by availing of this 2.15% fixed rate, instead of the usual variable rate of 3.7%.

2. What do I need to do to apply for a Green Mortgage Ireland?

When it comes to Green Mortgages, your bank will ask you for a document known as a Building Energy Rating (BER), which essentially is a calculation of how energy efficient your home is. BER certificates are valid for up to 10 years.

The BER measures how energy efficient your home is on a scale of A to G, with A being the most energy efficient your home can be. So what factors will affect your BER rating? Well, there are a variety of aspects affecting your BER, such as adequate insulation, a working boiler, etc..

The vast majority of banks will require a BER rating of at least B3 or B2 in order to qualify and apply for a Green Mortgage.

Lenders such as AIB, Ulster Bank, Bank of Ireland and Haven Mortgages all provide Green Mortgages in Ireland in 2021.

In order to avail of a Green Mortgage, you will have to receive your mortgage from one of these 4 lenders. However, if you are not with any of these specific lenders, you can contact a broker and switch to one of these mortgage providers to avail of a Green Mortgage.

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3. How can I make my home more energy efficient? Green Mortgage Ireland.

There are many simple and straightforward things that we can do to make our homes more energy efficient, which will increase our BER rating as well as save us money in the long run.

We can take certain easy and affordable measures such as keeping the immersion at 65 degrees or using efficient electrical lighting to make our homes B3 worthy. However, if you are willing to invest in making your home even more energy efficient, you could replace your unproductive boiler with a water pump which renews energy, or look about taking further steps to properly insulate your home.

All these measures, big or small, will help to maximise the energy efficiency of your home and overall will help make your application for a Green Mortgage more likely to succeed, and may even save you money by reducing your energy bills and making your home cheaper to heat!

Final Verdict: Should I apply for a Green Mortgage Ireland?

Overall, Green Mortgages are a great way to save money on a more energy efficient home. Making your home energy efficient won’t only allow you to benefit from a lower fixed interest rate, but will also help you save money in areas such as heating and electricity.

However, making your home more energy efficient does come at a price, so you should only avail of a Green Mortgage if you are willing to put the time, effort and money required into making your home more sustainable.

So, what’s next? Green Mortgage Ireland.

1. Check with your mortgage provider to see if they offer Green Mortgages and if so, what incentives do they offer for those who avail of this mortgage?

2. Research and find out if your home is eligible for a Green Mortgage and check your BER rating by contacting a BER assessor.

3. Try and find different affordable ways to make your home more energy efficient and B3 worthy.

If you are interested in switching your mortgage to a green mortgage, you can find out more about mortgage switching here.

If you want to calculate how much you would save by switching to a green mortgage, check out our mortgage calculator here.

If you wish to switch mortgage providers to a lender offering Green Mortgages, feel free to contact one of our mortgage sherpas for a free consultation.

August 16, 2021