Category: Buying a home

Buying a new home and need a mortgage? Our home buying guides cover help to buy schemes, stamp duty and everything else you need to know!

The 5 Key Steps to Buying a House in Ireland
Thinking of buying a house in Ireland, but don’t know where to start? Don’t panic, our 5 key steps to Buying a House will put you on the right path.

If you are buying from Ireland or from abroad the steps are exactly the same, but can look pretty intimidating to the uninitiated, that’s why we created this Buying a House in Ireland guide.

In reality though if you follow these steps, the process is pretty straightforward and could see you securing your dream home in less than 6 months!

5 Key Steps to Buying a House in Ireland

So here’s a quick run down of the key steps to buying a house in Ireland.
1. Financing House Buying in Ireland

Unless you are super lucky, it’s unlikely you will be buying a house in Ireland in cash which means you will need a mortgage. This will set your buying budget and can take a while to put in place, so it’s best to get the ball rolling before you start even looking at properties.

If you are a First Time Buyer you will need to put down at least 10% of the purchase price when you buy, you can do this from your savings or if you are buying a new build home using government grants.

There are two main grant schemes for First Time Buyers, the Help to Buy Scheme and the First Home Scheme. The Help to Buy scheme allows you to claim up to 10% of the purchase price of the house you are buying as a tax refund and the First Home Scheme can add up to an extra 30% by allowing the government to take a stake in the purchase.

These schemes can really boost your deposit and therefore your buying power, but they are only available to First Time Buyers buying newly built homes.

You then need to finance the remaining cost of the property with a mortgage from one of the Irish mortgage lenders. These lenders will look for proof of your ability to repay the loan by analysing your bank account before giving you what’s known as ‘Approval In Principle’.

So it’s really important when buying a house in Ireland that you can show you are saving or paying a rent larger than your mortgage repayment will be for the six months before applying for your mortgage.

How much you will be able to borrow, how much you will have to repay each month and even your chances of approval at all varies widely by lender. That’s why it’s best to get a mortgage broker who works with all the lenders, can recommend the best one for you and help you with the paperwork.

Most of the larger online brokers are free to use, so getting a mortgage broker can really help take the pain out of the financial part of buying and give you a much better idea of your buying budget. You can calculate how much you might be able to borrow here, but remember to leave money aside for costs like your solicitor, surveyor and valuer.

2. Searching for a House to Buy

When you are buying a house in Ireland it’s all about location, location, location. Think about your must haves and nice to haves for where you want to live to narrow down the area of your search.

Once you have your areas picked and your buying budget from your mortgage broker it’s time to hit the property search engines. The big two are DAFT.ie and myhome.ie [1] and if you use these to find out what property is available you will have access to 99% of all the properties listed in Ireland.

It’s worth putting the effort in to set your search engine up right, so register for an account to access email alerts and the full range of filters.

You don’t want to miss that dream home just because you only dip in and out when you are on the daily commute.

3. Viewing Houses to Buy

Before you start viewing you will need to secure your Approval In Principal (AIP) from your mortgage broker. When you are buying a house in Ireland selling agents often ask for the AIP to help them weed out the tyre kickers from the serious house hunters.

If you haven’t got your AIP yet, don’t worry you can get an instant online provisional AIP here.

Once you have got your viewing here’s a few things you might want to look out for.
- Orientation – Is the garden facing North (dark) or South (sunny)
- Storage – Are you likely to run out of space?
- Area – Once you’ve finished viewing, have a good mooch around the area.
While you have the agent agent, it’s best to make good use of them to dig a little deeper on the original listing. Here’s some smart questions that you might want to ask.
- How long has the property been on the market?
- Are there any current offers?
- Why are the sellers selling?
- Is there any planning permission on the home?
- Have the sellers made any structural changes?
- What year was the property built?
If you are interested in the house the first 3 questions will help you when you are making the offer and the last three will help avoid any nasty surprises when you are closing the purchase.

4. Making an Offer on a House

When your buying a house in Ireland the seller will often favour bids from buyers who already have their AIP in place when deciding which bids to accept, so make sure you have got a full Approval In Principal from your broker before you bid then find out if there are any current offers on the house you want to buy from the estate agent.

Once you have your ducks in a row don’t be shy in placing a bid, things can move very quickly in some house sales if buyers are happy to accept the asking price.

Although you may have your heart set on a house, make sure you don’t go beyond your budget, have a limit and stick to it.

The lenders are unlikely to go beyond their AIP amount and will also get an independent valuation of the house, so don’t be afraid of bowing out of the sale if you can’t make the numbers work.

5. Closing Your House Purchase

Once your bid is accepted and you have sent your booking deposit to the estate agent you will need to engage a solicitor, to help you review the purchase paperwork and draft the final purchase contracts, you should budget around €3,000 for this in total.

You should look for a solicitor who specialises in conveyancing, solicitors who do conveyancing on the side tend to cost more in both time and money. You can find an online conveyancer here.

Your broker will ask you to arrange an independent valuation of the property, mortgage protection and building insurance so the lender can release the remaining funds to you to complete the purchase.

It’s also worth getting a surveyor to give the house a once over at this stage for added piece of mind.

Once the funds are in place, you can exchange contracts with the seller. It’s only at this point that the sale is secure and the sellers can no longer pull out and you can finally look forward to moving into your new home!

In a Nutshell – Buying a House in Ireland

Although intimidating, buying a house in ireland isn’t actually that complicated.

The key steps are,
1. Getting Your Finance in Place
2. Searching for a House to Buy
3. Viewing Houses to Buy
4. Making an Offer on a House
5. Closing Your House Purchase
A good mortgage broker will not only help you secure the mortgage, but also deal with the estate agent, solicitors and insurance. Making sure you pick the right mortgage broker for your purchase is key then, you can find out more about what makes a good mortgage broker here or get free mortgage advice from moneysherpa’s brokers here.
September 27, 2023
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
House Prices Ireland 2023 – Will They Rise Or Fall?
As interest rates rise house prices Ireland 2023 have come under pressure, but the Central Bank raising the mortgage limit from 3.5 to 4 times income from the 1st of January this year may open up significant new demand and prop up prices longer term.

This will cause concern for some but, are house prices Ireland 2023 the real issue or are policy makers and opposition parties missing the point?

A study published by economist Ronan Lyons earlier this year, throws new light on the link between building costs, house prices and supply.

Simply put, the larger the gap between house prices and costs the greater the new housing supply.

If a developer can make a tidy profit, then they will develop more units until eventually supply catches up with demand and prices fall.

Here are the key things you need to know about house prices Ireland 2023 and how they will change in future.
It’s the Economy Stupid – House Prices Ireland 2023

In a free market there are then just two ways to make more houses available.
1. Reduce building costs
2. Increase house prices
Lyon’s analysis suggests that for the country to hit anything like the 30,000 completions target in the government’s Housing for All strategy building costs would have to reduce by nearly 40%.

With rising energy costs recently sending material and labour costs spiraling out of control, this seems unlikely.

Sure the government can introduce tax reliefs on development to put a brake on rising costs, but putting them into reverse seems a very tall order.

They could nationalise house building, but the cost problem doesn’t go away and since when did the state being in charge make things more efficient?

So with reducing costs ruled out as an option, let’s turn instead to increasing house prices to get supply back on track.

Housing Affordability does not = Low House Prices – House Prices Ireland 2023

The real issue with the housing market isn’t house prices, it’s housing affordability and that’s not quite the same thing.

What if we could raise prices in the housing market without reducing affordability?

Although this sounds counter intuitive there are many ways to do this, one is to increase the effective income of house buyers through grants or tax reliefs. This is the thinking behind the First Home scheme.

Yet there is one other significant weapon to increase housing affordability.

Credit.

Simply loosening the current Central Bank mortgage lending rules increases house prices, increases developer profits and in turn is likely to increase the supply of new homes.

While also increasing housing affordability for many who previously couldn’t buy a home.

The reason for this is that the Central Bank mortgage rules have locked out thousands of potential homeowners and trapped them in the rental market.

This has driven monthly rents way above monthly mortgage repayments.

In fact, recent analysis by moneysherpa.test.inview.ie indicates that the average rental household would save over €1,000 a month if the Central Bank rules allowed them to apply for a long term fixed rate mortgage at current rates.

Central Banks Lending Limit – House Prices Ireland 2023

So by lifting the 3.5 times lending cap imposed by the Central Bank, three things are likely to happen.
1. Housing affordability will rise as currently trapped renters move to a monthly mortgage
2. House prices will also rise as renters can now compete with investors for property
3. Housing supply will increase as developers greenlight projects that didn’t make financial sense previously
Hang on a minute though, doesn’t that just create a credit fueled housing bubble with people buying houses they can’t afford just like back in 2008?

That seems unlikely for a couple of reasons.

Firstly, we already know people can afford to pay these mortgages as they are already paying way more every month in rent.

Secondly, even if you removed the Central Bank limits completely the barriers to getting a mortgage are still way higher than back in the day. That’s because the rules imposed on Irish bank’s by the European banking regulators post 2008 already stop Irish bank’s lending willy nilly.

That’s why the Central Bank lifting the lending limits is a move to be welcomed, but should also raise the question. Why on earth was one of the tightest restrictions on mortgage lending across Europe put in the first place?

In a Nutshell – House Prices Ireland 2023

Given the hames the Bank made regulating the Irish banking sector last time around it was only natural for it to take a safety first approach.

The issue with the limit is that it put the kibosh on many lower and middle income families owning their own home. Thereby trapping them into paying spiraling rent, making them poorer and increasing social inequality.

We should be glad to see the back of the 3.5 limit, property investors will welcome the increased purchasing power it creates in a time of rising interest rates and potential house buyers will welcome the inevitable result, more homes being built than there would be otherwise.
March 21, 2023
What Is Mortgage Drawdown And How Long does it Take? – Mortgage Drawdown Ultimate Guide Ireland 2022
Congratulations you have your loan offer, but what happens next? Don’t worry we are going to guide you through the mortgage drawdown process with our Mortgage Drawdown Ultimate Guide Ireland 2022

For most people this is a once or twice in a lifetime transaction. It can be stressful but ultimately it will be worthwhile. Your solicitor needs to make sure that they cover all legal and planning issues before mortgage drawdown so that there won’t be any problems when and if you decide to sell in future.

The following guide will give you a better understanding of the mortgage drawdown process and how you draw down your mortgage.
How Long Will The Process Of A Mortgage Drawdown Take? Mortgage Drawdown Ultimate Guide Ireland 2022

First your own solicitor will need a copy of your loan offer, this should be sent directly to your solicitor by your lender, in what’s known as the loan pack.

Your solicitor will need the loan pack for the house you are purchasing before they can proceed, if it’s a switch they still need the loan offer pack. On average the loan offer takes 4/6 weeks to be issued by the lender.

Most solicitors will not look at any other documents until they have received the loan offer as they don’t want to spend time on a purchase that might not go through.

If you want to speed the mortgage drawdown process up though, you can either undertake to pay the costs in the event of the loan not being received or find a solicitor who will waive their fee if the transaction doesn’t go through.

This can speed up the process considerably, as you can be working on sale contracts whilst still waiting for your loan offer.

What Can Delay Mortgage Drawdown ? Mortgage Drawdown Ultimate Guide Ireland 2022

The issuing of contracts can be delayed if the Vendor’s Solicitor is getting deeds from a Bank (this takes between 10 and 14 days normally, but can take over a month) or if they are missing documents such as Certificates of Compliance.

Your solicitor will request these as they need to make sure that the house complies with all Planning and Title matters.

The house deeds are always needed so requesting these as early as possible is essential in getting your mortgage draw down complete as soon as possible.

It’s worth pushing your solicitor to act fast and move things along in parallel.

Most solicitors don’t specialise in property conveyancing so are only part time on your house purchase. You might want to look for a solicitor who is 100% dedicated to conveyancing and allows you to track your completion process on line.

moneysherpa recommend Jacob Law who specialise in conveyancing and have an online tool so you can upload your docs and track progress. If your switching they offer an all in price of €1350 including outlays and VAT.

Solicitors are also a particularly cautious breed and while this can be a good quality in their role, encouraging them to act faster rather than hang on for all the t’s to be crossed and i’s dotted usually pays off.

If your don’t move quickly vendors can pull out, lenders rates can change and your own circumstances may also shift, so it’s your job to push the solicitor as hard as you can to speed up the closing.

What Happens When You Get The Contracts- Mortgage Drawdown Ultimate Guide Ireland 2022

Once your solicitor has contracts and your loan pack, they read them and advise you about the property. They will also raise queries with the Vendor’s solicitor regarding the title.

They should send you a copy of any correspondence with the vendors solicitor.

What Happens After You Get The Advice Letter- Mortgage Drawdown Ultimate Guide Ireland 2022

Once you get the advice letter from your solicitor you should make sure that you are happy with the advice given and your solicitor will chase for replies to the queries/questions they have sent to the vendor’s Solicitor.

Once they reply and if the replies are ok, your solicitor will call you to arrange an appointment to go through the contracts and sign them if appropriate.

On average it takes two weeks to get replies and arrange to get contracts signed.

What Do You Need When You Sign- Mortgage Drawdown Ultimate Guide Ireland 2022

You need to pay the balance of the deposit on signing contracts and the cheque is payable to the Vendor’s solicitor. If you have not given your solicitor a copy of your driving licence or utility bills, as proof of identity and address, you will need to provide these at this point.

Your solicitor will then go through the contracts and loan offer and if you are happy then you sign the contracts. At this point you should get a definite idea as to the closing date from your solicitor.

Are You Committed When You Sign? – Mortgage Drawdown Ultimate Guide Ireland 2022

Once you sign the contracts, they are sent to the Vendor’s solicitor for signing by the vendor. The contract is not binding until they sign and return one copy.

This normally takes a week or two but it may be longer if the Vendor is buying another property or if there is a chain of transactions.

When Do You Close And When Do You Pay? – Mortgage Drawdown Ultimate Guide Ireland 2022

Once your solicitors have a copy of the contract back and know the closing date, your solicitor will email you details of what balance is required to close.

You also need to make sure that all the documents necessary for drawdown of your loan are with your mortgage provider.

Once your solicitor has all the monies they will arrange the mortgage draw down.

The Vendor’s solicitor then sends your solicitor all the Title documents on trust and the purchaser’s solicitor will transfer monies on trust then carry out searches to make sure there are no judgements against the property or the vendors.

If everything is ok and you confirm that the house is vacant and cleared out, your solicitor will authorise the release of the monies and you can collect keys from the Auctioneer.

What Happens After Closing – Mortgage Drawdown Ultimate Guide Ireland 2022

Your solicitor will arrange to stamp the deed and register the property. If you have an existing mortgage, they send your deeds to the Bank after the registration completes. If you do not have a mortgage, they will write to you to collect your deeds when they are registered.

Summary – Mortgage Drawdown 2022, Ultimate Guide

Mortgage draw down is a complex process so to summarise the steps that you need
1. Review your loan offer conditions with your solicitor
2. Request the house deeds from your current lender (if you are also selling or switching)
3. Review the property contracts with your solicitor and sign
4. Pay the outstanding deposit balance (if a new house purchase)
5. Supply lender with any outstanding documents (mortgage protection etc..)
6. Drawdown Mortgage
The key tip is chase, chase, chase. Don’t let your solicitor drive the process, make sure you are pushing and getting all your docs in on time.

The longer things take, the more that can go wrong.

That’s why getting partners that know the process inside out makes a lot of sense. moneysherpa advisors work with the best completions and solicitors in the country to make sure you get the best and fastest route to mortgage drawdown.

Next Steps – Mortgage Drawdown Ultimate Guide Ireland 2022

If you want to find out more about how to get a solicitor you should check out our guide on legal costs and the best solicitors here.

If you want to get the best solicitor for mortgage draw down, you can contact our recommended partners Jacob Law here.

You can get in touch with a moneysherpa advisor here.
November 23, 2022
Mortgage Rules Ireland 2022 – Ultimate Guide
The Central Bank announced as series of changes to the mortgage rules ireland this week, starting on the 1st of January next year, aimed at helping with the housing crisis:
1. The Loan to Income ratio for First Time Buyers is to be increased from 3.5 X Income to 4 X Income
2. The definition of First Time Buyers is to be extended to include those who have been divorced, separated or bankrupt to give them a ‘fresh start’.
3. The Loan to Value ratio for 2nd Time Buyers is to be reduced from 20% to 10%. Meaning you will only need a 10% deposit although the lending limit remains at 3.5 X income.
Is this a good thing? Mortgage Rules Ireland 2022

This mortgage rule change is a welcome move, this summer moneysherpa analysed rents and repayments nationwide and found the average renter would save over €1,000 a month by buying instead of renting.

The 3.5 X Cap froze our renters, who are typically lower income, from buying. This led to the less wealthy becoming even less wealthy, trapped paying rents instead of building up family wealth.

Increased social inequality and was therefore an unintended consequence of the limit.

The 3.5 limit made sense for the Central Bank after making a hames of the housing market back in 2008, they wanted to cover themselves from ever happening again.

But, and it’s a big but, the social cost of baking in intergenerational inequalities was massive. It’s great to see the 3.5 X mortgage rule go, but it’s one of many short sighted and ill judged housing measures currently in place that need reforming.

Will This Increase House Prices? Mortgage Rules Ireland 2022

There is some concern that this move may lead to increased house prices by letting renters into the market. It may well do, but that’s because it makes houses more affordable by giving more people access to credit, it’s a little perverse to say this is not a good thing.

To the worry that this is a return to the bad old days of the 2008 credit bubble, there are a number of significant differences between now and 2008 in play.
1. The LTI limit has not gone, it’s just gone up to 4 times income which just brings us in line with others in Europe
2. Lender rules are much tighter, with proper due diligence on affordability. Back in 2008 it was the wild west and we all have stories of brokers and banks making up the numbers as they went along.
3. The banks cost of credit is much higher due to increased capital requirements, which makes them a lot pickier about who they lend to.
Are Higher House Prices A Bad Thing? Mortgage Rules Ireland 2022

My last point on this, which may seem counterintuitive is that higher house prices may not in fact be a bad thing.

If more support through looser credit and grants being available, prices can be higher without affordability actually being lower.

Because our building costs are so high, developers aren’t actually making that much on building houses right now, with margins often below 10%.

As a result they ‘cherry pick’ which areas they want to build in and what type of customer they want to buy for.

That’s why we have a supply shortage particularly in rural or lower income areas. If prices rise, profits for developers will rise, which means supply will also rise.

This is a point many seem to miss entirely. I know it requires using a bit more using the grey matter to understand this, but people who are making housing policy or who will potentially be making policy really need to avoid saying daft things like lowering house prices is the objective.

Making more houses affordable is the objective and that’s a completely different thing.
October 21, 2022
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

How to Get Approval In Principle Fast, the Ultimate Guide
You can read more about how to get approved or simply apply to get Instant Approval In Principle (AIP) Online Now
- Provisional mortgage approval in less than 3 minutes
- Provisional AIP sent straight to your inbox
- Buying ready in less than 5 minutes
Get Instant Approval from moneysherpa Now

Central Bank limits – Approval In Principle

Exceptions – Approval In Principle

Credit policy – Approval In Principle

Mortgage calculators – Approval In Principle

Central Bank limits – Approval In Principle

Our Approval In Principle tool uses the sherpa’s own algorithm to assess if you are likely to be approved by the lenders.

The first hurdle to clear to get Approval In Principle is the central bank guidelines, all lenders have to conform to these [1]. If the central bank computer says no, then you probably need to do some more work getting mortgage ready.

First is the deposit to loan ratio, only 80% of the purchase price can be funded through loans. If you are a first time buyer the good news is this is increased to 90% to help get you on the property ladder.

Second is the loan to income ratio, your loan can be no more than 3.5 times your joint income per year. So if your household earns €100,000 a year, your maximum mortgage would be €350,000.

Don’t despair though, if these limits put your dream home out of reach. The Central Bank also allows lenders a quota of exceptions outside the rules above, read on to find out more.

Exceptions – Approval In Principle

As the lenders only have a limited amount of exceptions, they want to parcel them out to the ‘best’ customers. If you are a lender this means customers with higher disposable income, as that generally means a larger mortgages that have very high odds of being paid back.

To get an exception then the secret is to maximise the gap between your income after tax and your financial commitments. We give you the inside track as to how the banks measure this below.

Watch out though, exceptions are a double edged sword. As well as stretching your finances to the limit. They often run out early in the year and can be withdrawn leaving your home purchase stranded.

Our algorithm factors exceptions as an extra risk to your approval in principle, but if you income is high enough this doesn’t need always to be a barrier to approval.

Credit policy – Approval In Principle

Above and beyond the central bank limits, each lender has their own credit policy, which they use to approve both exceptions and loan applications.

These policies though boil down to the same thing. How likely are you to pay back the mortgage?

The way the lenders assess this is to look at how much cash you have over after you have made your repayment. This gives them an idea of how much wriggle room you have if interest rates rise or your financial circumstances change.

In general only regular income after tax is counted, although some lenders factor in bonuses and overtime etc.. at a discount.

The secret though is cutting back your committed outgoings. These are loans, childcare or if you are divorced or separated your monthly maintenance.

Also the more family members you have the higher the level of disposable income you will need.

To pass the lender limits after taking into account your outgoings our mortgage approval calculator will have to see a healthy amount left over at the end of the month.

This is to take into account what might happen if mortgage interest rates rise in the future.

Mortgage calculators – Approval In Principle

You can also use our other mortgage tools to help you get approval in principle and mortgage ready. Check out our
August 18, 2022

First Home Scheme Ireland 2024, Will It Help You Buy?

The First Home Scheme Ireland 2024 is a first time buyers support that allows first time buyers to borrow up to 30% of the value of their property directly from the government created scheme.

The FHS scheme can help you boost your buying budget and what you are able to borrow from the lenders making it easier to get a foot on the property ladder.

In this article, I will be going into detail about how the First Home Scheme Ireland 2024 works, what you have to do to qualify, how much can be available to you and finally how to apply. If you are thinking of buying and need more information about the First Home Scheme you can book a free advice call using the button below.

Book My Free moneysherpa Mortgage Advice

How does the First Home Scheme Ireland 2024 work?
How do I know if I qualify for the First Home Scheme Ireland 2024?
How much is available to me from the First Home Scheme Ireland 2024?
How can I apply to the First Home Scheme Ireland 2024?
A summary of The First Home Scheme scheme Ireland 2024.

How does the First Home Scheme Ireland 2024 Work as a First Time Buyers Grant?

The First Home Scheme Ireland 2024 is a First Buyers Grant that works as an equity scheme, while the Help to Buy Scheme is a tax refund scheme.

It allows first time buyers purchasing newly built homes or those self building to receive from 2.5% up to 30% of their property value as a deposit to help reduce the mortgage amount needed.

In return the Irish Banks and Government retains a share of ownership of your home through a private company they have created to administer the scheme.

When you sell your home the FHS company will get a share of the sale price depending on how much share they took.

For example,

Home purchased @ €300,000
First Home Scheme Deposit @ 30% = €90,000
Home sold @ €400,000
Government owed 30% = €120,000

The government also has the right to interest payments on the amount advanced after 5 years, first at 1.75% then rising to 2.15% after 15 years and 2.85% after 29 years.

So for a typical mortgage of 20 years

10 years €90,000 @ 1.75%
10 years €90,000 @ 2.15%
Total additional interest of €18,760

So in the example above the government would ultimately receive €138,760 for the €90,000 you receive under the First Home Scheme.

How do I know if I qualify for the First Home Scheme Ireland 2024?

The First Home Scheme Ireland 2024 is targeted at First Time Buyers who can’t get a large enough mortgage to afford to buy a new home. One recent tweak to the scheme allows also anyone who has been served notice of eviction and self builds to also apply for the FHS scheme.

It aims to bridge the gap between how much money you need and how much money the lender will give you.

For that reason the First Home Scheme requires you to have a mortgage of at least 70% of the properties value to qualify. If you can afford to buy without maximising your loan, then by definition you don’t need the scheme.

The First Home Scheme Ireland 2024 is available to all First Time Buyers purchasing a newly built property or self building a home under €500,000 in Dublin or Cork and down to €250,000 in some parts of the country.

Local Authority Area	House Price Ceilings*	Self Build Ceilings	Apartment Price Ceilings
Cork City, Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin	€475,000	€475,000	€500,000
Galway City	€450,000	€450,000	€450,000
Limerick City and County	€400,000	€400,000	€450,000
Waterford City and County	€375,000	€375,000	€450,000

_{updated 6/01/2024}

*For the purposes of the First Home Scheme, duplexes fall within house price ceilings.

Local Authority Area	Price Ceilings (all properties)
Wicklow County	€475,000
Kildare County, Cork, Meath	€425,000
County Galway	€400,000
Laois, Louth, Kilkenny, Westmeath	€375,000
Clare	€350,000
Kerry, Mayo, Monaghan, Offaly, Roscommon, Wexford, Carlow, Cavan, Donegal, Leitrim, Longford, Sligo, Tipperary,	€325,000

_{updated 6/01/2024}

A First Time Buyer is anyone who hasn’t previously taken purchased a property in or outside of Ireland.

Due to the governments ‘fresh start’ policy the scheme is also available to anyone who has been made bankrupt or is divorced and no longer has a share of a property.

In order to qualify, you must-

Be a first time buyer both 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
Be moving into a newly built home in a private development
Be using the property as your principal private residence for 5 years

The government has indicated that the FHS scheme will be extended to also include self build properties.

How much is available to me from the First Home Scheme Ireland 2024?

Under the First Home Scheme Ireland 2024, first time buyers can claim,

Up to 30% of the purchase price of their new home, for example a home worth €200,000 can claim €60,000
If you avail of the Help to Buy Scheme however the First Home Scheme is capped at 20%

As the Help to Buy Scheme is a grant it is not subject to being reclaimed or to future interest payments.

This means that a combination of funding the purchase through a 10% Help to Buy Scheme grant and a 20% First Home Scheme equity option is the best approach for most cases.

The FHS scheme is not means tested so is available for all income levels.

How can I apply to the First Home Scheme Ireland 2024?

If you think you qualify for the First Home Scheme Ireland 2024, then you should talk to a mortgage broker who can advise you on the best approach and which lenders work with the scheme.

There is also a web site dedicated to the scheme. [1]

In a Nutshell – First Home Scheme Ireland 2024

With monthly rents now often costing more than monthly mortgage repayments on the exact same property, buying a home can be an essential step in creating better financial and life outcomes.

The First Home Scheme Ireland 2024 used in conjunction with the current Help to Buy scheme may help renters trapped by these rules escape, by reducing the size of mortgages required to buy a home by a further 20%.

There are some catches to the FHS scheme bear in mind though, the only lenders in the scheme currently are PTSB, Bank of Ireland and AIB Group (which includes EBS and Haven). These lenders have the most expensive mortgages on the market.

If you wanted to switch mortgage to a cheaper lender, you would have to buy out your 20% equity stake to do so. This could severely limit your options and leave you paying through the nose on your interest repayments.

Also if you are looking to trade up a few years down the line, your equity for the trade will be worth less as you will have to take the scheme’s stake in your property into account. This could make getting the 20% deposit required for a second time buyer an impossible hurdle in some cases.

There is no doubt also that this will put further upward pressure on house prices, a similar scheme in the UK is said to have added 6% to property prices, but for those wasting thousands every month in rent, it at least offers some hope at last.

Next Steps – First Home Scheme Ireland 2024

You can find out more about the other major government support scheme, the help to buy scheme here.

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.

July 5, 2022

First Time Buyers Ultimate Guide Ireland 2024
With house building ramping up and new homes starting to come on stream, many are starting to dream of owning their first home once again.

By using a combination of the grants available to you, equity release from the family home and the right mortgage lender, that new home might be closer than you think.

Times are still tough for First Time Buyers due to rising prices and some of the tightest lending rules in Europe.

Don’t despair though, with the right approach First Time Buyers may still be able to get a foot on the property ladder.

By using the Help to Buy grant, the First Home Scheme, plus a gift from your parents funded through equity release you can increase the size of your deposit and steal a march on other would be buyers.

In our First Time Buyer Ultimate Guide Ireland 2024, we’ll give you the full run down on everything you need to know if you are a first time buyer, plus some insider tips to help you get your dream home.
Who qualifies as a First Time Buyer? First Time Buyer mortgage Ireland 2024

How much can I borrow? First Time Buyer mortgage Ireland 2 024

What deposit do I need for a First Time Buyer mortgage? Ireland 2024

What are the latest help schemes for First Time Buyers? Ireland 2024

Insider tips to help First Time Buyers. Ireland 2024
Who qualifies as a First Time Buyer? First Time Buyers Ireland 2024

To qualify as a First Time Buyer you can’t have had a mortgage before.

If you have taken out a mortgage under your name either in Ireland or overseas, you are no longer a First Time Buyer.

The good news though is you still count as a First Time Buyer if you previously inherited a house or bought outright or if you have been separated/divorced or bankrupted since you previously bought a property.

Importantly if there are two people going on the mortgage, both must never had a mortgage before to qualify as a First Time Buyer.

How much can I borrow? First Time Buyers Ireland 2024?

The amount you can borrow is set by two things. First the Central Bank lending limits and secondly your mortgage lender’s credit policy.

Central Bank Lending Limits

The Irish Central Bank’s lending limits are some of the tightest in the world, so these are usually the biggest hurdle that needs to be overcome. [1]

The absolute maximum you can borrow under Central bank limits is 4.5 times your annual gross household income, however lenders are only allowed to go this high on 20% of mortgages. These are known as exceptions, 80% of mortgages must be under 4.0 times annual gross household income.

Typically lenders want any loans over 4.0 to go to what they see as the lowest risk customers. So these ‘exceptions’ go to people later in life who are the very highest earners and have lower living expenses than most First Time Buyers.

For the vast majority of First Time Buyers then, the maximum you can lend will be 4.0 times your annual gross household income. This is how it usually works.
- Kate earns €34,000 gross per annum, €24,000 basic and €10,000 last year in bonuses
- Liam earns €30,000 gross per annum, €20,000 basic and €10,000 in commission last year
So their joint gross annual income is €64,000 per annum.

The Central Bank limit of 4.0 will allow them to borrow up to a maximum of €256,000.

Lender Credit Policy

On top of the Central Bank limits lenders apply a second set of rules to assess if you will be able to repay the mortgage.

These differ significantly from lender to lender. For example some lenders discount bonus and commission payments completely and others bump up salary contributions if you are in the public sector.

More generally the lender looks at your earning and spending history in the last 6 months to work out how much income will you have left over after you have covered your commitments.

The more money they think you will have left over the more they are likely to lend you.

This makes picking the lender who maximises your potential mortgage and maximising how much you put by in the 6 months before applying for a mortgage really important.

It can even help you get hold of one of those precious mortgage exceptions.

Look for a mortgage broker who has access to all the lenders in the market as some lenders are only available via a broker.

What Deposit do I need for a First Time Buyer mortgage? Ireland 2024

The minimum amount of deposit you need to buy is also set by the Central Bank of Ireland.

The good news is that as a First Time Buyer you only need to put down 10% of the properties purchase price upfront. Second time buyers also have to stump up 10% for the deposit, but can only borrow 3.5 times their gross income.

That said it still makes sense to maximise your deposit if you can.

Ramping up the deposit reduces the mortgage size, which can knock thousands off the interest you will pay or may even help you afford a property that the Central Bank rules may have put out of reach.

With spiralling rents eating into your savings additional support schemes are often essential to make the numbers add up correctly.

What are the latest help schemes for First Time Buyers? First Time Buyers Ireland 2024

The Help to Buy scheme allows first time buyers to claim 10% of their property value to help them pay a deposit on newly built homes.

It’s a Government tax refund scheme and in order to claim, 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.

In order to claim from this scheme, your home must be valued at €500,000 or less.

The most you can claim is €30,000, so if your home is valued at more than €300,000, you still can only receive €30,000 max.

There is also the First Home scheme, which provides up to 30% of the properties value in return for the scheme taking a share of your home. You can find out more about the First Home Scheme here.

You may be able to bump up your deposit further with a gift from friends or relatives. The usual route for first time buyers is through their parents, commonly known as the ‘bank of mum and dad’.

It’s unlikely that your parents have fifty grand lying about the house, but they may have equity tied up in the family home that they can access to provide cash for a deposit via a process known as equity release. Equity release allows homeowners who have paid down part of their mortgage to get a tax free cash lump some to fund a deposit for their family members or others.

By releasing equity on the family home parents can gifts their kids up to €330,000 tax free, this may be an attractive option for them if the kids are still taking up room on the family couch or wasting thousand of euro’s in rent.

Insider Tips for First Time Buyers Ireland 2024
1. Work with a mortgage broker who will match you with a lender that maximises your mortgage
2. Reduce your outgoings in the 6 months before applying for a mortgage to maximise your loan
3. Save as much as you can yourself for a deposit
4. Top up your deposit with the Help to Buy scheme & First Home Scheme
5. Consider equity release as an option to further increase your deposit and purchasing power
By maximising your deposit and working with a broker with access to all potential lenders, first time buyers will make the most of their chances of securing their dream home.

Next Steps – First Time Buyers Ireland 2024

Are you a first time buyer wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge!

Trying to save money as a first time buyer? Check out our top ten saving tips in Ireland here!

Want to learn more about the first time buyers help to buy scheme here, the First Home Scheme here or equity release here.

If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.
April 5, 2022

Buy or Rent? Renters Now Paying Over €3,500 a Year More than Buyers

moneysherpa.test.inview.ie analysed how rents now compare to the equivalent monthly mortgage payments on the same properties region by region. The average renter will now pay €3,588 a year more than a buyer taking out a 90% loan to value mortgage on the same property.

Significant Differences In Savings Across Ireland

The analysis found that in Dublin, Louth, Limerick, Kildare, Meath, Longford and Mayo renters were paying an average of €4,000 more a year than buyers. With City Centre Dublin showing the highest difference at €8,359 more in rent paid each year and all areas of Dublin paying over €5,700 more versus the repayments on a 90% mortgage on the same property.

The only region in the country where rents are actually lower than mortgage repayments is South County Dublin, where renting is over €3,000 cheaper a year than buying.

South County Dublin was very much the exception though, in all other regions buying saves at least €1,000 a year compared to renting.

moneysherpa.test.inview.ie yearly average saving in mortgage payments v rent per region

Buy v Rent Calculator

moneysherpa.test.inview.ie has also developed a free online calculator below that can be used to calculate how your own monthly rent would compare to a mortgage repayment.

[formidable id=”95″]

Renters Being Hit Hardest by Housing Crisis

The moneysherpa analysis indicates that renters are those being worse hit by the housing crisis. With a shortage of new rental supply driving a 8.0% increase in rents year on year combined with strict mortgage lending limits locking out renters from buying.

The Irish Central Bank imposed lending limit of 4.0 times salary is one of the strictest lending caps in Europe, with would-be buyers being forced to continue renting as they are unable to get a mortgage due to the bank’s rules.

Even if a would be buyer hurdles the Central Bank limits they then face lenders with some of the highest rates and strictest credit policies in the world.

Creative Solutions Needed

This analysis raises some significant questions about the current mortgage lending rules, which are creating a chasm between those who can get a mortgage and those that can’t.

Those that can, pay over €100,000 less to live in their home over 30 years and then own a home that they can pass onto to their family if they wish. Those that can’t, pay over €100,000 more over 30 years and have nothing to show for it.

The government, regulators and lenders need to develop more creative solutions to help trapped lenders get on the property ladder.

The idea that expanding grants or relaxing credit rules will inflate housing costs or result in unsustainable repayments is misguided, housing cost inflation and unsustainable repayments are already here in the form of sky high rents.

Relaxing mortgage rules or increasing the scope of grants will simply allow more people to own their own homes and become financially secure.

Average regional rents, house prices and monthly mortgage repayments.

moneysherpa.test.inview.ie analysis of Monthly Rent v Mortgage Payments

Region	House Price	Monthly Rent	Monthly Mortgage	Monthly Difference	Yearly Saving
City Centre Dublin	€372,616	€2,317	€1,620	€697	€8,359
West County Dublin	€362,998	€2,200	€1,579	€621	€7,457
South City Dublin	€468,106	€2,602	€2,036	€566	€6,796
North City Dublin	€403,654	€2,262	€1,755	€507	€6,079
North County Dublin	€386,368	€2,158	€1,680	€478	€5,733
Louth	€279,305	€1,664	€1,215	€449	€5,392
Limerick	€251,517	€1,464	€1,094	€370	€4,442
Meath	€334,074	€1,813	€1,453	€360	€4,322
Longford	€197,280	€1,204	€858	€346	€4,153
Kildare	€340,148	€1,823	€1,479	€344	€4,125
Laois	€248,082	€1,422	€1,079	€343	€4,118
Mayo	€212,869	€1,259	€926	€333	€3,999
Roscommon	€206,672	€1,230	€899	€331	€3,975
Offaly	€253,727	€1,432	€1,103	€329	€3,943
Sligo	€205,559	€1,217	€894	€323	€3,877
West Meath	€272,679	€1,502	€1,186	€316	€3,794
Cavan	€217,320	€1,256	€945	€311	€3,731
Carlow	€265,638	€1,432	€1,155	€277	€3,322
Clare	€243,078	€1,329	€1,057	€272	€3,263
Wexford	€288,854	€1,494	€1,256	€238	€2,854
Tipperary	€240,645	€1,280	€1,047	€233	€2,802
Galway	€280,701	€1,452	€1,221	€231	€2,775
Leitrim	€185,701	€1,023	€808	€215	€2,585
Donegal	€213,782	€1,122	€930	€192	€2,308
Cork	€291,262	€1,458	€1,267	€191	€2,296
Monaghan	€233,349	€1,188	€1,015	€173	€2,079
Kerry	€269,736	€1,329	€1,173	€156	€1,872
Waterford	€317,139	€1,494	€1,379	€115	€1,378
Wicklow	€413,431	€1,905	€1,798	€107	€1,285
Kilkenny	€303,694	€1,411	€1,321	€90	€1,084
South County Dublin	€656,409	€2,602	€2,855	-€253	-€3,031

March 10, 2022

How Long Does Mortgage Approval Take & How Do I Get Pre-Approval Now – Ireland 2023
Buying a home is probably the biggest financial decision you will ever make and one of life’s most stressful times. So you are probably super keen to know how long does mortgage approval take and can you get pre-approval or approval in principle like yesterday.

Knowing how mortgage approval and pre-approval works in Ireland can help you secure your dream home and reduce your stress levels.

That’s because how you apply makes a big difference to how much you can borrow and how long the whole process will take.

With our Ultimate Guide to how to mortgage approval Ireland 2023, you could borrow up to 4.5 times your joint income and get the whole thing done and dusted in less than 3 months.

Here’s our top 3 how to get mortgage approval Ireland 2023 tips
- Maximise your savings in the 6 months before you apply to maximise what you can borrow
- Understand how best to navigate the mortgage approval process to minimise delay
- Use a broker with a wide selection of lenders to maximise your mortgage approval odds
Use our tool to get Pre-Approved now below.

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If you want to find out more before diving in read on to see understand how you can get mortgage approval and maximise how much you could borrow while minimising the hassle factor.
Work Out How Much You Can Borrow – How long does mortgage approval take Ireland 2023

The first step is to work out how much mortgage you can get, you might not need to borrow up to your limit, but it will help you to understand your maximum budget in case you find yourself in a bidding war for your new gaff.

To help avoid a credit bubble like the one that went pop back in 2008 the Central Bank sets some absolute maximum limits that no lender can go beyond.

If you are buying your home to live in, the limit is the lower of either
- Income – 4.5 times your joint gross income per year
- Deposit – 10 times your deposit
Wait a minute before you rush off and bid on that dream home, the Central Bank only allows 20% of all borrowers in any year borrow up to these limits.

The lenders are therefore very picky about who gets these ‘exceptions’ only putting forward people with squeaky clean credit histories and very high levels of disposable income.

If you fall outside the top 20% of applications then the limits are
- Income – 3.5 times your joint gross income per year
- Deposit – 10 times your deposit for first time buyers and 5 time for others
As part of the application process the lenders will also run the rule over your ability to repay the loan. Based on this they may lend you less than the limits above or indeed nothing at all.

For most people the 3.5 times salary limit is the one that applies and gives the best idea of your budget. However if you need an exception to make up the numbers or want to maximise your odds of approval you can use our instant Approval In Principle (AIP) tool below.

Our tool runs the numbers based on your income and expenditure and instantly spits out your odds of mortgage approval across the lenders. Even better we will then automatically email you with a provisional Approval In Principle that you can use to view property and start your house hunting!

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Maximise My Approval Chances – How long does mortgage approval take Ireland 2023

Even if you have enough disposable income for mortgage approval on paper based on our provisional AIP calculator we then have to back this up with evidence.

Lenders try to work out, based on information on your application for what’s know as a full Approval In Principle, the likelihood of you not paying back the mortgage in full. If a loan goes south that’s a big hole in their profits, so the more risk they think you are the less they will lend.

This means you can maximise the mortgage you can get by knowing what they are looking for and getting your finances in shape in advance of mortgage approval.

This is why the question how long does mortgage approval take can have a different answer depending on your circumstances. A switcher can be done in 6 weeks as they have solid proof they can make the repayments, while someone who doesn’t have evidence of spare cash left over might have to wait up to 6 months before even applying.

The 6 months before the application is critical as lenders will look at your bank statements in this period to assess your ability to repay the loan as part of the application.

So what are the key things you can do to maximise your approval chances?
1. Maximise your Income – Many lenders include 50% of overtime, bonuses and commission, so maximising these can be a big help.
2. Clear your outstanding loans – These eat into your ability to repay and are usually higher interest than your mortgage will be.
3. Secure your employment – Make sure you have finished any probation period or have a long term contract.
4. Don’t splurge – Minimise your outgoings, so you show consistent evidence of saving some money at the end of every month.
5. Delete your Paddy Power app – Any major spend on online gambling is a big no no and don’t try to be smart by moving it to your Revolut account the lenders are wise to that and will ask for statements.
Keep your nose clean for 6 months and you will demonstrate to the lenders you can be trusted and will maximise your mortgage potential.

Get Some Help – How long does mortgage approval take Ireland 2023

So you have 6 months of sparkling clean bank statements and you are sick of living on your mates couch, what do you do next?

You have two choices to kick start the application process.
1. Apply to one of the lenders directly
2. Apply to a lender through a broker
Which lender you apply to can make a huge difference to your approval chances and what you will pay over the course of the mortgage. That’s why we recommend using a broker for your application.

A broker can look at your situation and match you with the best lender to maximise your approval chances and minimise your repayments. Brokers are often free to use and are impartial as they get paid the same commission 1% of the mortgage value by all the lenders.

Not all brokers are created equal though. Check out if your broker has:
- Access to the best lenders for rate Avant Money, ICS, Haven and Finance Ireland
- No fees or low fees for your type of application
- An online application process to make the paperwork easier
- A best rate guarantee
What Happens Next – How long does mortgage approval take Ireland 2023

Once you have chosen your broker you can get the application underway.

1. Apply Online

First up you will need to confirm your personal and financial details to get your instant Approval In Principle. You can jump right in below to start the process now.

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Once you have your provisional approval you can upload supporting documents like your bank statements and proof of identity onto the brokers application platform.

These documents are needed to help prove you can repay the mortgage and also prove you are who you say you are.

2. Choose Mortgage & Lender

Your broker then reviews your details plus documents and recommends the best lender and mortgage product. As each lenders approval policy is different they will match you with the best one for you.

For example, ICS lend more to public servants and is good for short term fixed rates. Avant Money on the other hand don’t do exceptions above the 3.5 salary, but have the best long term fixed rates.

They will also run you through the other options and why they think they aren’t a fit for you at this point.

3. Get Full Approval In Principle (AIP)

Your broker will then use the documents and details you submitted to apply for approval with the rate and lender you picked. It can take 3 days to 3 weeks to get approval depending on the lender you choose (your broker will fill you in on this).

You can now go bid on a property knowing you have an approval in your back pocket!

4. Get Final Loan Offer

Once your offer has been accepted your broker will have it valued by an independent estate agent. This is so the lender can have confidence that the asset that they are securing the lending on (your new house), is worth what you say it is.

Once the lender has all the details on the property from the broker they issue the final offer, which includes any conditions before you can access or ‘drawdown’ the loan. These are usually things like you must have a life protection policy and home insurance in place, which your broker will help you arrange.

5. Complete House Purchase

Ta Da! The moment you have been waiting for, once the conditions are met the loan is released and you get the keys to your new home!

In a Nutshell – How long does mortgage approval take Ireland 2023

How you apply for a mortgage makes a big difference to how much you can lend, how long it takes and your approval chances.

The first thing to do is to work out how much you can borrow and get your provisional AIP, we have a handy mortgage calculator for that here.

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Then you need to make sure all your documentation lines up and if needed clean house on your finances for the 6 months before you apply.

You should then engage with a broker who can guide you to the best lender and help take the pain out of the paperwork. You can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

Finally, make sure you know the process and where you are in it, so you can reduce your stress and maximise your chances of getting your dream home.

We have loads more on help to buy grants, the best rates and mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.
Best Buys
Avant Money Mortage

From 3.61%^aprc

Years Fixed: 3-30

Approval Policy: Tight
Best Buys
Haven Mortage

From 4.00%^aprc

Years Fixed: 3

Approval Policy: Complex
Best Buys
Bank of Ireland

From 3.90%^aprc

Years Fixed: 4

Approval Policy: Flexible
You can get more detail on the documents required from the CCPC [1].
November 18, 2021
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!

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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