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?
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.
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.
Remortgage Ireland 2024. When I headed up mortgage products at PTSB, the low numbers of people remortgaging in Ireland was a shock. Despite huge savings we still have one of the lowest rates of remortgaging on the planet.
Remortgaging is simply taking out a new mortgage to pay down your old mortgage, either to get a lower rate (known as switching) or to release cash tied up in your home (know as top up or equity release).
Anybody who took out a mortgage after 2008 and is no longer on an introductory rate is likely to save around €25,000 by remortgaging. Over half of all mortgage holders, that’s over 450,000 households, will save at least €5K.
Why is the remortgaging rate so low? Well, most people don’t know how much they can save or how to remortgage. By the end of this article you will be one of thew few lucky ones able to take advantage of the record low interest rates for those remortgaging right now!
Would I save by remortgaging? Remortgage Ireland 2024
If you are one of the 66%+ people who took out a mortgage after 2008 you should definitely look into remortgaging. This is because you’re probably on what lenders call a standard variable rate.
Irish Standard Variable Rates are some of the highest in Europe, at 4.2% [1]. Remortgaging to a new business rate will reduce your interest rate and remove the risk of further increases.
If you are on a tracker mortgage, remortgaging might also make sense as ECB rates are at record highs and it may help you cap your repayments.
Even if you are on a fixed rate, if it’s less than 3 years you should probably consider remortgaging to get on a longer fixed term deal of 5 or more years to protect against upcoming variable and fixed rate increases.
How much would I save by remortgaging? Remortgage Ireland 2024
If you are in the majority of Irish mortgage holders (66%+) who would save big by remortgaging, working out exactly how much you would save isn’t complicated.
Our handy mortgage repayment calculator automatically calculates the rates available at your LTV and estimates out how much you would save if you remortgaged to the best rate in the market.
If you want to see all the providers mortgage rates and your repayments for your LTV you can click the more information button.
The loan and term outstanding is easy to get as it is sent to you each year by your lender and doesn’t change that much each year. For people remortgaging last year the loan was €170,000 and the term 15 years on average. [2]
The more your home value rises the lower the rate you can get when you remortgage. This is what lenders call the Loan to Value ratio or LTV. If you’re not sure about your home value it’s easy to estimate.
If you bought before the crash in 2008 your house is probably now worth about what you originally paid for it as the market has pretty much bounced back since then.
If you bought after 2008 it should be worth roughly what you bought at, plus give or take an additional 4% for every year since you bought. So if you bought ten years ago you can add on 40%, nice!
How much hassle and cost is it remortgaging? Remortgage Ireland 2024
Fortunately to remortgage in Ireland 2024 isn’t like applying for a mortgage the first time around. You can now do it totally online and for free.
There are still some upfront costs you have to watch out for, you still need to get a solicitor to handle your house deeds and help you with the new mortgage agreement. You will also need to get your house valued by an estate agent to help set your mortgage rate.
The higher the value of the house the lower the loan to value rate, which means less risk for the bank, which means a lower rate for you.
All in switching costs usually come in at around €1,200 including the VAT, way lower than the potential savings.
Even better lenders, who are keen for new business, often pay for your solicitors fees and to get your home valued and for you to use an online switching platform like moneysherpa’s. AIB and Haven offer over €1,500 towards the cost of switching. BoI, PTSB and EBS all offer 2%+ cash back which often works out at even more.
Plus, they will handle all the paperwork for you.
How do I remortgage Ireland 2024?
If you use a service like moneysherpa’s it is pretty straight forward. The main thing you need to worry about is what to do with the money saved. Seriously, do you?
1. Pocket the savings
If you bought after 2008, have around €170,000 and 15 years left on your mortgage you should be looking to save over €180 a month in saved interest payments.
That would be €32,400 saved over the 15 years, without including cash back payments if you keep switching. This can make a really positive difference to the household budget and give you some welcome financial wriggle room.
2. Pay off the mortgage earlier
This is personal favourite as you effectively double down with your savings.
If you use the €180 a month you save to pay off your mortgage quicker, you can reduce your term by over 10% without paying anymore than you do today. Saving you another €4,307.
That’s €32,400 + €4,307 = €36,707 saved.
3. Release more cash
If the lower monthly repayments from remortgaging mean you can borrow more, known as topping up your mortgage you could free up the cash tied up in your home. Because it’s secured on your home, a mortgage is one of the cheapest ways of securing credit. This can be a great way to fund big once off investments, but be careful if you might struggle to repay the higher amount.
In a nutshell – Remortgage Ireland 2024
Remortgaging is a great way to save. 1 in 5 people will save over €25,000 and over half will save over €5,000 by remortgaging in Ireland 2021.
Rates are better than ever and many mortgage brokers will handle the paperwork for you for free as they are paid by the lenders. Talking to a broker can help you work out the best option for your own circumstances, whether you are looking to simply save, fix your rate or free up cash.
Remortgaging is simply taking out a new mortgage on your existing property. When this is done with a lender who isn’t your current lender this is also known as switching. Typically people remortgage to get a lower rate, a shorter term or to borrow additional funds, also known as a mortgage top up.
What the difference between a remortgage, a switch and a mortgage top up?
A remortgage can either be with your current lender or a new lender, while a switch is a remortgage with a new lender. A top up is a remortgage that takes out more funds usually for home improvements.
Why remortgage?
There are two main reasons why people remortgage or switch mortgage. 1) New customer rates in Ireland are almost half existing customer rates, so remortgaging can save mortgage holders significant amounts in interest payments 2) To release equity tied up in your home. To allow investment or major purchases at mortgage interest rates which are lower than other types of loans.
How to remortgage your house?
The first step is usually to talk to a mortgage broker with access to all the lenders. They will look at who is most likely to lend to you and at what rate. Depending on what you want to do, different lenders will be suitable for different things.
How does a remortgage work?
If your switching lenders the new lender will pay down your current mortgage with the current loan. If you are still in your fixed period there may be what’s known as a breakage or early redemption fee, check with your current lender if there is, usually there is no or a very low fee and it still makes sense to switch. Once your new loan is in place with the new lender you will move on to the new terms you have agreed.
What is a remortgage?
A remortgage is a new mortgage on a property already with a mortgage. Usually that new mortgage is used to pay off the previous mortgage. Often the new mortgage is at a lower rate reducing the repayments and saving money for the mortgage holder. In Ireland this is often known as switching mortgage.
How early can I remortgage?
If you are on a variable or tracker rate you can remortgage straight away, if you are on a fixed rate you may be charged a ‘breakage fee’. However, these fees are regulated by EU law and can be zero or quite low, so you may be able to still remortgage within your fixed term. Check with your current lender what your break fee would be and then talk to a broker.
How do you remortgage a house?
To remortgage you take out a new mortgage with a new lender and use that to pay off your current lender. Usually to improve the rate or increase the mortgage amount. This known as mortgage switching in Ireland and remortgaging in the UK, but it is the same process.
Don’t let mortgage switching costs put you off switching. Switching mortgage improves your financial shape more than anything else bar winning the Lotto. In fact, if you bought after 2008 you will probably save over €20,000 by switching to lower rates.
That said, there are some upfront costs you need to know factor in, read on to find out what they are, how you can cover them with cash back and why switching still makes loads of sense.
What are mortgages switching costs and switching mortgage legal fees?
The good news is that switching your mortgage is much less stressful, easier and nowhere near as costly than buying a new home. That said there are still some solicitor and estate agent upfront mortgage switching costs.
Don’t panic though these costs are usually much less than the savings from switching and with some lenders switching mortgage legal fees and estate agent costs are fully covered with upfront payments.
There are no land registry or search fees involved with switching, but you will need a solicitor to do a bit of paperwork for you. Switching mortgage legal fees cover the solicitor costs to:
Request your house deeds on behalf of the new bank from your current bank
Review and advise you on the terms of the loan the new bank is offering you
Witness and process the loan agreement for the new bank
These steps give everyone involved in the switch peace of mind, the bank knows your ownership of the property is kosher and you understand the deal being offered to you by the bank.
As well as switching mortgage legal fees, the other mortgage switching cost is a valuation fee. An estate agent selected by the bank will also value your home, this allows the lender to make sure you are on the right mortgage rate.
How much are mortgage switching costs, switching mortgage legal fees and how much is it to switch?
So how much are the mortgage switching costs all in?
Switching mortgage legal fees range from about €1,500 to €2,000 including VAT at 23%. Typically solicitors in Dublin will be at the higher end of the range.
moneysherpa have agreed an all in switching price of €1,500 including VAT for customers switching with one of their mortgage sherpas [1]. As well as the VAT this all in fee includes
Legal Fees
Bank Fees
Search/Land Fees
Declaration Fees
The other mortgage switching cost is the valuation fee which is much less at around €150.
So if you shop around, your all in costs should come in well below the €2,000 mark inc VAT.
Which banks cover mortgage switching costs, switching mortgage legal fees and what options are there?
Many of the lenders don’t want these costs to put off potential switchers so pay an upfront cashback incentive. These incentives usually cover mortgage switching costs including mortgage legal fees with cash to spare.
Haven offer €1,500, €2,000 depending on the value of the mortgage to cover mortgage switching costs.
PTSB, EBS and BoI offer 2% and 3% of the mortgage loan as cashback. So on a typical loan size of €200,000 that’s €4,000 to €6,000 into your hand, covering your legal fee costs and then some.
These deals are really useful if you can’t afford to cover the mortgage switching costs, but would save by switching. They also are a great option if you are looking to switch multiple times, as under EU law lenders can’t stop you taking more than one cash back.
That said, if you can afford to pay the mortgage switching costs upfront and are looking to get on the best long term deal, you should us the APRC rate rather than the cash back deal to choose your mortgage provider.
In our latest mortgage market reviewthe Avant Money 7 year fixed rate product came out on top, despite having no cash back at all. The 7 year fixed rate is €6,775 cheaper than the best cash back product available on a typical loan size of €200,000.
That’s why you are often better to ignore cash back if you can and cover the mortgage switching costs yourself if you can afford it.
Does it still make sense to switch after mortgage switching costs and switching mortgage legal fees?
If you bought your house after 2008 you are probably on rates of 4% plus.
The rates for switchers right now are at an all time low at around 2%.
This big difference in rate means that you would save over €25,000 by switching on a typical mortgage size of €200,000.
This means that even after you factored in the mortgage switching costs including the legal fees, you would save over €23,000 over the lifetime of the mortgage.
The really great news is that comparing rates and switching is easier than ever thanks to services like moneysherpa.
moneysherpa have agreed an all in switching price of €1,350 including VAT for customers switching with Jacob Law.
Our recommended solicitor panel cover the majority of the country and are experts in property conveyancing, they are 100% online and are the fastest in the market. Just click here to book an appointment.
Read on to get the best student money tips available to Irish teens. As a teen myself I spent hours looking for the best financial advice specifically for teenagers, both online and from people I know.
After investigating I have found that as a teen you are taught little about finance, this lack of knowledge can leave many teenagers strapped for cash and struggling to afford basic necessities. This article aims to help fill in the gaps for teens where the education system comes up short.
The really great news is it’s not as hard as you think to get into good money habits. With the right information and coaching, teen finance won’t be a problem.
Here’s the 5 financial tips to make you the teenage Elon Musk.
As a teen, you’ve probably heard this a thousand times, time is money. Literally, all you need is time to make money.
Just lump a bunch of money into a long term investment and watch your money grow. Teenagers don’t have much resources available to them but generally teens and older people alike don’t realise how valuable time is because of something called compound interest.
Most people don’t realise the power of compound interest where your returns in year 1 boost your returns in year 2 etc..
When your young is the perfect time to start long term investing, but you should always get help from parents or professionals before investing in things like crypto or the stock market as you could lose all your money. Stupidly putting your money in Dogecoin could mean being in severe debt by the time you hit college.
Short term investing is often compared to gambling because the stock market and crypto are extremely unpredictable. Famously a monkey was able to make more money from the stock market than 9 out of ten professional traders on the stock market.
Long term investing is much safer and has bigger rewards. It’s a win win.
2. Track your Spending – Student Money Tips
Although this might seem insignificant, believe me when I say keeping track of the stupid things you’ve impulse bought really helps you avoid dumb purchases in the future. Its also useful because in a lot of cases you don’t realise what’s draining your bank account, things like going out too much to a snickers addiction can make your money disappear without you even realising it.
Always remember how much you have in your bank account before buying non essential items, You don’t want to go without heat for a week because you decided to have a drunken pool noodle fight with your roommates.
3. Not all debt is bad debt – Student Money Tips
It should go without saying, being in debt to things like payday loans is just terrible, but debt like mortgages generally can’t be avoided and have a relatively low interest rate compared to other loans. If you go your whole life without debt like mortgages, chances are you’ll be homeless due to how expensive houses are nowadays.
This doesn’t mean you should welcome all debt with open arms, as taking out loans for luxury items will always come back to bite you due to high interest rates, but if you’re starting up a business or taking out a loan for investments, debt should be worth it.
4. Go to College/University – Student Money Tips
There is a lot of stigma about people not being able to afford College and Universities, but that generally comes from the States as their prices for University is about 40`000 a year whereas in Ireland its about 3000 a year. 3000 is still a lot of money and chances are to afford living and tuition fees you’ll need to be extremely money smart but the pros of going to college vastly outweigh the cons.
Non grads have almost twice the unemployment rate as people who have gone to college and make on average around 10000 less. You may have also heard of super rich business men like Mark Zuckerberg and Bill Gates dropping out of college as well but you must remember again that they’re American where the prices of college are much higher and most people who drop out will not make as much as people who went to college. They also left to start the businesses that made them the billionaires they are today.
5. Get a Summer Job – Student Money Tips
If you are a college student, a summer job is basically essential to afford tuition and living costs. Not have a nervous breakdown over being able to afford a sandwich for lunch is amazing and helps you focus more on your studies.
It also helps to have a diverse and full portfolio for your cv when you go into the world of work. Employers like to see that you have experience working no matter what the job is and they also like jobs that show you have a multitude of skills.
What’s next – Student Money Tips
So to summarize,
1. Don’t take your time for granted, it’s extremely valuable.
2. Always remember what you spend your money on, make a budget with this information.
3. Not all debt is bad, some debt just helps you make more money further down the road.
4. Going to college is basically essential to get high paying jobs
5. A summer job should really help with finances and getting a job in the future.
If you want more help with money saving and investing for the future check out our other money saving articles.
New information available from the property price register shows that Dundalk mortgage holders could save over €68 million euros by switching their mortgages to lower rates.
With the gap between existing and new business rates wider than ever, there are record savings for Dundalk mortgage switchers.
Mortgage switcher rate savings
To compare different mortgage rates you are better off using the Annual Percentage Rate Change (APRC) rather than the headline rates according to the Consumer Protection Commission. The APRC includes hidden fees and the full cost of the mortgage, so gives a much better picture of real savings.
The average APRC for those who bought after 2008 is 4.2%, according to the Central Bank of Ireland [1], but new business APRC rates are now as low as 2.29%, according to the money guide moneysherpa.test.inview.ie , that’s 1.91% lower.
This means Dundalk mortgage holders can almost half their rate by switching.
One thing to watch out for though, before 2008 Dundalk mortgage holders are likely to be on a tracker mortgage. These mortgages have an APRC of around 1%, so it is unlikely you will save if you bought before then.
How many Dundalk mortgage switchers will save?
According to the property price register [2] just under four hundred houses are sold in Dundalk every year. Since 2008 almost 5,500 homes have been sold in and around Dundalk.
Just over of a third of houses sold are in new developments built since 2008, these include:
Rathmount
Earlsfort
Marlmount
Mount Hamiliton
Lis na dara
Saltown
Castleross
On average, according to the Central Bank, half of those sales are funded with a mortgage, this means there are around 2,500 Dundalk mortgage holders stand to save by switching.
How much is the average saving for mortgages in Dundalk?
According to the Banking and Payments Federation Ireland (BPFI) [3], switchers have an average mortgage of €242,000 and 15 years of payments left.
Based on currently available new business rates, Dundalk mortgage holders would save over €25,000 each and €62.5m in total if they switched right away.
How do Dundalk mortgage holders switch?
The good news is switching isn’t complicated and is usually free according to Daire McConnon of moneysherpa.test.inview.ie.
“The banks are very keen for new business at the moment, so most cover any costs involved. The process is also much simpler than getting a new mortgage as you already have a home loan. “
“If you get a local broker or switching service to help you, they will handle all the paperwork for you and they are paid for by the lenders so are free to use .”
In a nutshell – Dundalk mortgage switcher savings
The fall in new business mortgage rates has made it attractive for the people to switch their mortgage.
There are over 2,500 Dundalk mortgage holders who bought after 2008 will make big savings by switching.
Switching isn’t complicated and a local broker can help you switch by handling the paperwork for you.
Worries about money are the single biggest cause of anxiety for people today. A third of all Irish adults say they have no savings, almost a half of us have no retirement savings. [1,2,3]
It doesn’t have to be this way. Our team of financial experts at moneysherpa, the Irish money guide, have developed a straightforward system to help you get money worry free. The sherpa’s 6 steps.
With the sherpa’s 6 steps we will get you on the right path to money zen. This means being able to afford what you need, having rainy day fund for emergencies and enough stashed away for retirement.
Which = no money worries.
Step 1 – The Irish money guide to picking your goals
Think about what might lie in your future that you need to set money aside for.
It might be a trip to the Bahamas, university for your kids, a dream wedding or a ‘forever’ home. Whatever these things are, list them out. Put them in order and put a money number on each, don’t over think it, a rough idea is fine.
This is your ‘sunny day’ goal, if you’re paying attention you may have already have guessed what’s coming next.
To banish those money worries you also need a ‘rainy day’ goal. This is a cash stash to help you deal with any unexpected financial downpours.
Finally you need to set your ‘play day’ goal. That’s how much you need to have a retirement that’s no work and all play.
These three goals are what achieving money zen means for you. Your personal money Everest.
You can make it to the top, with your own Irish money guide helping you at every step.
Step 2 – The Irish money guide to getting money fit
Congratulations, you’ve already done what the majority never do. You have picked your ‘mountain’. Let’s crack on helping you climb it.
Before we start climbing we need to get money fit.
This means getting more money in and letting less money out.
Getting more money in
There are more moves here than you might think.
As well as your main gig, have you thought about a side hustle? This can be doubly smart, as well as increasing your earning power, you can learn new skills and open up new career opportunities. There are a lot of online platforms such as upwork that make earning on the side easier than ever.
Finally, don’t forget to make sure you get all the tax reliefs you are entitled to. The average cash back on an Irish tax return is just under €1K. [4]
Letting less money out
There are just two ways to spend less, buy less and buy for less. To buy less, you simply have to reduce what you use. To buy for less, you need to shop around.
Check our Irish money guide 10 top money saving expert tips, which tells you how to save over €12,000 a year, even if you are on an average wage.
Step 3 – The Irish money guide to becoming debt free
Now we are money fit we should have more coming in than going out. Great, but before we start climbing our savings mountain, we need to get to our basecamp where we’re not ‘underwater’ with debt.
If you have no high interest debt, congratulations you are already there. Progress to step 4 of our programme, but if you have any personal loans, pay day loans or leave anything on your credit card at the end of the month, read on.
Saving whilst still having high interest debt is like climbing a mountain with a dead sheep on your back. Exhausting, uncomfortable and irritating, although hopefully a little less smelly. The first thing we need to do is ditch the debt and get that weight off your shoulders.
By taking the monthly surplus from step 2, we can start to pay down the debt. Start with the highest interest first, usually your credit cards. Starting with the highest interest debt first, creates a ‘snowball effect’ where you can use the interest rate payments saved to pay off the next highest rate of debt and so on.
Step 4 – The Irish money guide to ‘rainy day’ saving
So your fit, at basecamp and ready to climb, let’s go get our rainy day goal.
The sherpa recommends having at least three months of your net income tucked away for a rainy day. That way you can pay the rent and bills for a few months even if your income if cut short. Depending on how secure and zen like you want to feel, you might even make it six months.
Put this money away in a separate savings account that’s covered under the deposit guarantee scheme. It will get a lousy rate of return, but this is your emergency fund so we want to take no risks with it. The Irish scheme guarantees deposits up to €100K for each bank or credit union you have, EU banks have similar schemes, but you will have to check the rules for each state. [5]
Set up an automated transfer to move your savings each month from your current account to your rainy day fund. Keep saving this way until you have reached your goal and then move onto step 5.
Step 5 – The Irish money guide to ‘play day’ saving
Next up is having enough set aside for an active retirement, your ‘play day goal’.
This maybe surprising, but this is where the tax man helps you ‘level up’. Giving you back the tax you would have paid on your salary for every euro you save for your retirement.
If you are under 30, up to 15% of your income can be saved tax free. This gradually increases as you age, until you can save up to 40% of your income tax free at 60 or over. [6]
So if your income is taxed at 40%, every €1 of take home pay put into retirement savings is boosted to €1.67. This tax free boost makes savings via a pension a no brainer. Even if you just held cash in your pension, the tax benefit alone makes it a smart move.
With improved wellness and life expectancy, 65 is the new 45. Assuming you want to kick up your heels a little and do more than watch day time television, you need to put by around 15% of your income each year into a pension.
What you need to put by will depend on exactly how much working and how much playing you intend to do. If your plan is to retire to a mansion in Mayo and take up fly fishing, then you might need to up the 15%. If you want to keep your hand in at work past 65, you might need less.
For your play day goal you are saving over a long period, so there are lots of investment options from low risk to higher risk that should offer attractive growth. To set up a pension and work out what approach would best work for you, it usually makes sense talk to a qualified financial advisor. You can check out our recommended pension financial advisors near you here.
Step 6 – The Irish money guide to the final ascent
Congratulations! You are money fit, debt free and with emergencies and retirement sorted, money worry free.
Time to push for the summit, total money zen.
With your rainy day fund and play day fund already in place, you can use any remaining surplus for the final ascent.
How you use that surplus will depending on the size and timing of your Sunny day goal. If it’s a short term or small goal then popping it into a savings account might make perfect sense even though you will earn very little interest.
However, if it is a longer term goal like saving for your kids financial security it probably makes sense to invest to grow your money. You need to do this to combat inflation, the rate of reduction of how much you can actually purchase per euro.
You probably need to get a return of over 3% a year if you don’t want to lose money in real terms. As with a pension, the return will vary depending on the risk you are willing to take.
At this point you will need to consider investing to get returns. This usually means buying things that usually appreciate in value, known as ‘assets’. Investment assets include gold, bonds, shares and even rare collectables. Who knew a mountain of Grateful Dead t-shirts would end up being part of your financial strategy.
You probably need to buy a basket of different things to spread the risk, known as a ‘diversified investment portfolio’. There are lots of new digital platforms that now let you do this yourself. These platforms are attractive, because they don’t eat up much of your return in fees.
You may however simply want set your goals and appetite for risk, agree a plan with a financial advisor and let them manage the buying and selling of assets for you. The advisor usually charges around 1% of your fund per year, which if you are getting a return north of 5% or so might make sense due to the lower hassle factor. You can check out our recommended investment financial advisors near you here.
The Irish money guide to what’s next?
So you are at the summit of your own personal money Everest. You have achieved money zen. The feeling of having no money worries, with a huge sense of personal achievement and with the world at your feet.
To help you follow the sherpa’s 6 steps and reach money zen we have created a range of Irish money guide resources and tools.
Based on months scouring the Irish market for savings and our inside knowledge of the Irish finance world we’ve narrowed down this list to the top money saving tips that will deliver bang for your buck in 2024. We’ve used all these tips ourselves and they made a huge difference to our own bank accounts.
The really great news is it’s not as hard as you think to save money in Ireland in 2024. With many businesses moving online and comparison sites that will do the heavy lifting for you, big savings are often only a click away.
Most of what you read online is focussed on pouring over spreadsheets and logging your spend daily.
With these money saving tips, you will be able to take control and get saving with no spreadsheets required.
Here’s each money saving tip and how much you will save on average.
Keep reading to find out how to save over €13,000 a year.
Tip 1. Money saving Ireland – Get All You’re Owed (save €1,880)
How do I know how much tax back I’m owed?
There’s a smorgasbord of different tax reliefs you are entitled to as an Irish citizen or resident. The citizen’s information board is always a good place to start (link at the end of this article), but cutting to the chase the big ones are,
Home carer tax credit – €1,800
Medical or dental tax relief – 20% on expenses incurred
Working for home relief – up to 30% of your broadband and heating costs
And, for 2023 the Rent (€750) or Mortgage credit (€1,250)
Example average tax relief saving Ireland 2024 = €1,880
The good news is there are lots of online services out there, with the biggest being taxback.com, that will file the tax paperwork for you in return for a cut of the refund. The average money saving refund received by Irish consumers in 2024 was €1,880. Due to budget 2024 that’s likely to be even bigger this year.
This doesn’t include any benefits you might be entitled to, such as energy credits, working family payment or the fuel allowance.
Workers are in demand right now so you could also consider maximise your income by considering asking for a pay rise, changing jobs or working longer hours.
Next, once you’ve super sized what’s coming in, the next step is super shrinking what’s going out. You can do this two ways.
Buy for less
Buy less
Let’s start with the easiest, buy for less. Switching suppliers usually does pay off as companies know most people don’t bother to make the effort. This allows them to keep prices high for existing customers whilst offering sweet introductory deals for new customers.
The next three tips will take you straight to where you can save the most money in Ireland by switching in 2024.
Tip 2. Money saving Ireland – Switch Your Mortgage (save €3,250)
Contrary to what many think mortgage rates in 2024 are likely to be even higher in 2024 than they were in 2023. With the latest ECB survey of forecasters expecting tracker rates to be 0.5% higher in 2024 than they were in 2023 at 4.25% on average across the year, making the average tracker mortgage rate 5.4%.
There’s even worse news for those on variable or short term fixed rates as those rates are still expected to rise by a whopping 2% to 6% in 2024 as lenders put through ‘catch up’ increases to cover their increased funding costs. Short term fixed rate customers will flip on to the higher variable rates unless they take action now.
The good news though is that you can still fix long term at 4% by switching to the best rates in the market, which would save the average tracker or variable rate customer over €3,000 a year.
Check with your current lender to see if you can now ‘break’ from your current fixed rate for free, due to recent rate increases this is very likely to be the case.
Then talk to a mortgage broker who will find you the best rate, they are usually free to use so it always makes sense to get them to run the numbers and see if it worth your while to switch.
Example average mortgage switching saving Ireland = €3,250 per year
The average tracker customer switching to 4% on the average outstanding balance and loan term will save €1,428. The average variable rate switching to 4% on the average outstanding balance and loan term will save €3,276.
Tip 3. Money saving Ireland – Switch Your Energy Provider (save €723)
How do I save money by switching my electricity or gas in Ireland 2024?
Your electricity or gas service is the same no matter who you buy it from, the key thing then is to simply get the best price.
Lots of new providers have entered the market tempting switching with some great money saving deals. It couldn’t be more straightforward to compare and switch using one the comparison sites like Bonkers.ie or Switcher.ie.
Example average electricity and gas saving Ireland 2024 = €723 per year
The average home in Ireland uses 11,000 kWh of gas (at an average of 14.6c per kWh) and 4.2K kWh electricity (at an average of 46c per kWh) per year.
This means the average gas bill is now €1,606 and electricity now €1,917, or a hefty €3,523 combined.
The good news though is much cheaper rates are still available, with gas as low as 12.7c kWh and electricity as low as 36c kWh.
Switching to these lower rates would bring your gas bill down to €1,393 and your electricity bill down to €1,510, saving you over €700 on current rates.
Tip 4. Money saving Ireland – Switch Your TV Provider (save €456)
How do I save money by switching my TV in Ireland 2024?
With streaming services now offering not just box sets, but live TV as well there are big money savings to be made by ‘cutting the cord’ from old school TV providers.
Providers like Sky or Virginmedia typically charge around €35 a month for their entry TV pack, even though there is the same content available elsewhere for free. Ditch your current provider and get your sports and live TV from a combination of free to air & streaming, you will save hundreds and still get the same shows.
Example average TV saving Ireland 2024 = €456
Replacing Sky’s entry and Sky Sports pack at €77 a month with free to air, whilst getting your Sky Sports straight from the NowTV streaming service for €39 will save you over €456 a year. [5]
Next up, there are whole industries and armies of people whose job it is to get you to part with your hard earned cash everyday. The next three top money saving tips will help you avoid the traps and buy less in Ireland in 2024.
Tip 5. Money saving Ireland – Don’t blow it, Avoid the Urge to Splurge (Save €1,270)
How do I save money by avoiding non essential spend in Ireland 2024?
The best way to avoid temptation? Don’t put yourself in the way of it in the first place. Why do companies spend millions to push their ads, email lists, get your data, offer you easy credit and offer ‘one click’ payment options?
Yep, so you will spend more. Dun & Bradstreet found We are 12-18% more likely to purchase using credit over cash. [6]
As a savvy money saving consumer cut this off at source, don’t sign up to marketing or to one click purchases. Delete your cards from your phone and move your money by standing order every month to a separate savings account where you can’t get at it easily.
Example average saving by hiding the credit card Ireland 2024 = €1,270
Around €11,000 per household per year is spent on credit cards in Ireland according to the Irish central bank [7]. So according to the Dun & Bradstreet study switching this spend to cash would reduce this by 12% at least, saving €1,270 a year.
Tip 6. Money Saving Ireland – Go German (save €660)
How do I save money by going own label or to Aldi & Lidll in Ireland 2024?
The average Irish household spends over €5,500 per year on groceries [8]. According to research in the UK [12] the German discounters were around 12% cheaper than other suportmarkets and just as good quality if not better.
Example average own label saving Ireland 2024 = €660
Even allowing for the odd luxury in your basket, knocking a third off your grocery bill by switching to own label or the German discounters is pretty easy. This would give a saving of €660 a year for the average Irish household.
Tip 7. Money Saving Ireland – Become a DIY Barista & Chef (save €1,521)
How do I save money by paying for less everyday in Ireland?
When you buy a sandwich, coffee or get a takeaway you’re not just paying for the ingredients, but the whole cost of the seller’s business plus the profit that business is making.
According to Irish coffee house 3fe of the €3.50 you pay for your regular Americano only 50c is actually spent on coffee and milk.The rest goes on staff, rent, rates etc.. [8]
That makes it a staggering 7 times cheaper for you to make your regular latte or macchiato at home. I’m not picking on coffee, the same is pretty much true of any takeaway or eat out you can think of, it’s just a great money saving opportunity.
Example average DIY saving Ireland 2024 = €1,521
Irish households spend just over €1K per year on takeaways and eating out [9]. Add to that €7.50 every working day for you to pop out and grab a sandwich and you get just over €3K per year spent on takeaway food and coffees.
We aren’t going to deny you a weekend takeaway or lunch time pick me up, but if you cut by half you are looking at a hefty money saving of €1,521 you would be able to pop in the piggy bank.
Tip 8. Money saving Ireland – Cut Out Cigarettes & Alcohol (save €3,232)
How do I save money by reducing smoking and drinking Ireland 2024?
Known to Irish finance ministers for decades as the ‘old dependables’, beer & fags are the first place to go to raise tax revenues.
This has made both prohibitively expensive and also a smart go to when you want to raise your own bit of revenue by saving money.
The average Irish smoker spends over €2200 a year on cigarettes [10] and the average Irish drinker almost €2K are year [11].
Example average ‘old reliables’ saving Ireland 2024 = €3,232
Based on the averages if you drink and smoke and halve the beer and cut out the fags you would save a whopping €3,232 a year on average. Not to mention the health benefits of cutting down on both.
Next let’s get those interest payments down, nailing money saving tips 1-9, will help you get what you’re owed, buy for less and buy less. This gives you a lot more financial firepower, blasting open the doors on the final money saving tip.
How do I save money by reducing my credit card and loan debts in Ireland 2024?
Outside of your mortgage or student loans which are typically low interest, debt is a money saving blackhole to be avoided at all costs.
Irish households owe €8k on average in credit card and loan debt, paying the 4th highest rate of interest in Europe at 10.3%. [12]
The solution is to start paying down your debt, starting with the most expensive first, almost certainly your credit cards. This is the ‘snowball ‘ effect, where the savings from the interest on one loan can help pay off the next and so on.
Example average credit card and loan saving Ireland 2024 = €900
With the money savings from tips 1-9 coming to over €12K and the average Irish household debt at €8K, you should hopefully be able to pay off all your credit card and consumer loans. At the average interest rate of 10.3% that’s a money saving of over €900. Plus a big weight off the shoulders.
Finally, totting all the savings up from tips 1-9 gives a saving of €12,837, reaching our savings goal target of €12,500 of €7,500 for our rainy day fund and €5,000 for our trip to see Mickey.That puts you on a sound financial footing and on a plane to Florida for the trip of a lifetime.
Money Saving Ireland 2024 – In a Nutshell
So it’s been a money saving whirlwind tour alright,
€1,880 saved, getting what you are owed
€4,429 saved, buying for less
€6,683 saved, buying less
€900 saved, going debt free
€13,892 Grand total saved
Remember, we did all this using only the average national wage of €2,500 after tax, a bit of will power and some money saving smarts.
Money Saving Ireland 2024 – what should I do now?
These money savings are based on averages for Ireland, you will have to take your own case and work out what saving it means for you. You should also chat with a professional financial advisor for any big decisions or one of the state’s financial advice support services if you need help.
If you want to delve deeper into what you can save and how to do it (and why wouldn’t you?). Our other guides and money saving tools including our inflation savings buster tool how to switch your mortgage can be found here.
Lastly, if you are struggling to make ends meet, you aren’t alone. More than half of all Irish adults say financial concerns are a threat to their mental health.
If you are struggling with debt, making ends meet or just need some free independent advice, you should check out the state’s Money Advice & Budgeting Service (MABS) for further help.
