Going for a Mortgage: What You Need to Know
Buying a home is a significant life milestone, but it also comes with a lot of questions. Especially when it comes to securing a mortgage. If you’re considering applying for a mortgage, it’s essential to understand the options available, the process, and the borrowing limits that apply to you. Calculate your mortgage payments before you get started.

Types of Rates Available When Getting A Mortgage In Ireland
When you’re looking for a mortgage, you’ll come across different types that are tailored to various needs and financial situations. The two most common types are fixed-rate mortgages and variable-rate mortgages.
Fixed-Rate Mortgages
- In a fixed-rate mortgage, your interest rate remains unchanged for a set period (typically between 1 and 10 years). This gives you the certainty of knowing exactly what your repayments will be each month.
- Pros: Financial security with predictable repayments.
- Cons: Usually, if you want to exit the contract early, you might face a penalty or breakage fee.
Variable-Rate Mortgages
- With a variable-rate mortgage, your interest rate can fluctuate depending on market conditions. This means your monthly payments can go up or down over time.
- Pros: Greater flexibility, no penalties for overpaying, can switch lenders at any stage.
- Cons: Uncertainty in your repayments due to interest rate changes.
Tracker Mortgages
(still in existence for tracker mortgage holders but not offered to new customers anymore)
- Tracker mortgages link your interest rate directly to the European Central Bank (ECB) rate plus a fixed percentage. When the ECB rate changes, your interest rate follows.
- Pros: Low rates when ECB rates are low.
- Cons: They can increase substantially when rates go up.
It is also possible to get a split mortgage where you have a portion of the loan amount on a fixed rate and the remainder on a variable rate.
The Mortgage Process Simplified
Securing a mortgage involves more than just finding a lender; you’ll need to prepare documentation and meet certain criteria. Know more about how we can help with your mortgage.
Here’s an outline of the steps you’ll need to go through:

Step 1: Check Your Finances
Lenders will look at your financial history, including your income, expenses, and existing debts. Make sure you have a good credit history and are in permanent employment. For certain occupations, contract work will be accepted if that’s considered the norm for that profession. As a rule of thumb, lenders will allow you to borrow around 3.5 times your gross annual income. The Central Bank raised this to 4 times gross annual income for first time buyers in January 2023.
- Save for a Deposit: You’ll need at least 10% of the property’s value as a deposit, however some lenders may require a higher deposit for certain property types (usually one bed apartments). Investment buyers generally need a minimum of 30% for a deposit. You’ll need to show where your deposit has come from so make sure you have statements for any savings accounts used.
Step 2: Choose a Lender
Different banks and lending institutions offer different mortgage rates and terms. Take the time to compare these and consider all of your options. It can be easier to consult with a mortgage broker who can guide you to the best deal.
Step 3: Get Mortgage Approval in Principle
Before house-hunting, it’s wise to get mortgage approval in principle. This gives you an idea of how much you can borrow, so you don’t waste time looking at properties out of your budget. Also, most estate agents won’t accept an offer from you without one.
You’ll need to provide:
- Proof of Income (payslips, Salary cert)
- Bank Statements (usually 6 months’ worth)
- Proof of Identification
- Evidence of Savings for Your Deposit
Step 4: Find a Property
When you find a property, you’ll submit all the details to the lender who will then conduct a valuation of the property to ensure it’s worth the loan amount. Once you get the go ahead, you’ll be issued with a loan offer with a list of requirements you will have to satisfy to complete the sale. This will include getting home insurance and mortgage protection cover.
Step 5: Final Approval and Drawdown
Once you have completed all of the listed conditions on your loan offer you will be approved for drawdown. You’ll need to hire a solicitor to complete the legal paperwork. After everything is in order, the funds will be transferred to your solicitor, who will complete the purchase on your behalf.
What should I know as a first-time buyer?
Being a first-time buyer offers some distinct advantages, both in terms of eligibility and incentives.
Here’s a closer look at some important points:

First Time Buyer Definition
You are considered first time buyers (FTBs) if you and anyone else on your application has never purchased a property before. In January 2023 the definition of a FTB was extended to include people who had previously purchased a property in a couple but are now out of that property due to the partnership ending.
Deposit Requirements
First-time buyers are required to have a deposit of 10% of the property’s value. For example, if you’re buying a house worth €300,000, you’ll need to have €30,000 in savings for the deposit. This is usually from savings but gifts from family are also allowed. Bear in mind you will also need to be able to cover your stamp duty and legal fees.
Help to Buy Scheme
The Irish government’s Help to Buy Scheme provides a tax rebate of up to 10% of the value of the home (max €30,000) for first-time buyers. This rebate can go towards your deposit, making it easier to reach the required 10%.
To qualify:
- The home must be newly built or a self-build.
- You must live in the property as your primary residence.
- You need to be fully tax compliant, and the rebate is based on the tax you’ve paid over the previous four years.
- The value of the property can be a max of €500,000
Central Bank Loan Limits
Due to first-time buyers generally being earlier in their careers and likely to receive income growth during the life of the mortgage, they may be able to go up to 4 times gross annual income which is higher than the 3.5 times allowed for second time borrowers.
Longer Mortgage Terms
First-time buyers in Ireland can typically secure mortgages with a term of up to 35 years depending on the age at the time of application. The longer the term, the lower the monthly repayments, although you’ll end up paying more in interest over the life of the loan.
Conclusion
Getting a mortgage in Ireland, especially as a first-time buyer, involves understanding the different types of loans available, gathering the necessary documentation, and planning your finances carefully. With lower deposit requirements, government schemes like Help to Buy, and a wide array of mortgage products, first-time buyers have more support than ever in securing their first home.
By preparing in advance, shopping around for the best rates, and availing of any available schemes, you’ll be in a strong position to navigate the mortgage process successfully and get one step closer to owning your dream home.
As a mortgage broker we can do the work in finding you the best fit and assist you from start to finish to make sure you understand everything involved and keep the process as simple as possible.
