First things first, make sure to talk to a lender or a broker at the early stages of your search, this will help you understand what you can borrow and what you need to do to get mortgage ready.

Ideally, you should be in a permanent role for at least 6 months, showing you have the capacity to save, pay off or minimize any loans you may have.

All banks and brokers follow the loan-to-value (LTV) and loan-to-income (LTI) rules and limits set by the Central Bank.

Since 1st January 2017, first-time buyers have a limit of 90% LTV. This applies to the full value of all residential property, therefore first-time buyers will need a deposit of 10% for any house or apartment, regardless of price.

You will need to start collecting documentation which we have listed below for you.

6 Months Payslips
Employer stamped salary certificate
P60
Identification of either passport or driving license
Proof of address
Bank Statements

If you are a first-time buyer and looking to buy a new build, you should register for the Help to Buy scheme. The Help to Buy is an incentive scheme to help first-time buyers to secure a home, if you want to find out more see DNG’s guide to the Help To Buy scheme

Once you are eligible for a mortgage, you will be issued Approval in Principle (AIP) from your lender. Your AIP will usually last for 6 months and it gives you an idea of how much money you can borrow at that time. You will need to take into consideration other costs including, but not limited to, legal fees, valuation fees, booking deposit, stamp duty, mortgage protection, snag lists, service charges, moving costs, and furnishing your new home.

Stamp duty is a tax you pay when you transfer property. It is charged on the written documents that transfer ownership of land and buildings. Stamp duty applies to residential property such as houses, apartments, or a site with an agreement to build

The Stamp Duty rates on a transfer of residential property are:

1% on the first €1 million
2% on the excess over €1 million.

These rates apply to instruments (written documents) executed (signed, sealed, or both) on or after 8 December 2010.

For more information on Stamp Duty visit DNG's Guide to Stamp Duty.

Usually, your snag list will be carried out by a surveyor or a professional with industry knowledge. The developer will invite you to snag it once your home is completed. Snag lists include a full description of any visible defects within the property and will also outline any suggested repair work.

Once the snag list is completed you will be invited back for a final walk-through prior to the sale closing. Snagging usually costs between €300 to €450 plus VAT.

Once you have found a new build development that suits your needs, we recommend that you look at the surrounding areas and the local amenities when you are looking for your new home.

We would suggest starting to look at solicitors at this stage as you will need to appoint a solicitor to manage the conveyancing process. There are no set prices for legal fees in Ireland but most solicitors will charge either a flat fee or some will charge a percentage of the house purchase price. You should shop around and find a solicitor that best suits your needs, usually, a recommendation from a friend, family member, or colleague who has previously used this solicitor, is a good way to go.

We would suggest starting to look at solicitors at this stage, you will need to appoint a solicitor to manage the conveyancing process. There are no set prices for legal fees in Ireland, most solicitors will charge a flat fee, and some will charge a percentage of the house purchase price. You should shop around and find a solicitor that best suits your needs, usually, a recommendation from a friend, family member, or colleague who has used a solicitor before is a good way to go.

Once you are looking to buy a property, you will need to appoint a solicitor to act on your behalf. Your solicitor helps to oversee the legal process of the sale so that ownership is lawfully transferred to you. Once you have appointed a solicitor you should ask your solicitor what information you need to provide to them and what legal documents you will require when purchasing a property.

As you are on your buying journey, you may have picked out a number of new home developments which are of interest to you. As each development will have different release dates, it is best to register your interest with the appointed agent on the development to keep up to date with all the latest information.

Each development that you register your interest in will have different property types available for sale within each phase. Information regarding the release will be available prior to the release date and pricing will be available on the day of the launch.

As there could be a number of different property types available, you may not be able to view a show house for the property type you have chosen. The development will usually have show houses available to view and they will cater for the most prominent house types within the development.

If show houses are available at the time of the launch, your agent will arrange an appointment for you to view the show houses. 

Virtual tour videos & floor plans would frequently be used by agents when selling units off the plans, or if the show houses are not yet ready. Virtual tour videos are made up of CGIs (computer-generated imagery) and can be a good guide to the house layout.

As mentioned above, the house that you choose to buy might not be the same as the show house you view, so we would advise, when buying off the plans, there are a number of factors to consider:-

• The Development

We would recommend that you ask the agent how large the development will be and how long it will take to construct the entire. 

• The Developer

Find out if the developer has built any previous developments for you to view.

• Management Company

We would suggest asking if a managing agent will be appointed to manage  the development and what annual service charge will be applicable to the unit type you are buying. 

• Parking

Each development will have different parking arrangements. We would also suggest asking the selling agent to confirm the type of parking and how many spaces will be provided with the property. 

• House Specification

The selling agent will provide you with a detailed specification for the development when it is launched off-plan. There is usually a no changes policy within new developments as changes can delay the build process. 

• Garden Orientation

The orientation of each house will differ and we suggest asking your agent what aspect your garden will have. The show house garden is usually landscaped whereas in general, the garden to a new home will be levelled and seeded. 

• Timing

Development timelines are complex in nature and completions can be delayed due to a number of factors which are outside of the developer and the agent’s control. It is best to keep up to date with completion timelines by keeping in regular contact with the agent. All parties involved will be doing their best to make sure the sale completes on time. If your loan offer is due to expire in the same month as the expected completion, we would recommend that you speak to your mortgage provider to make them aware of the completion timeframe.  Your mortgage provider will be best placed to advise you whether an extension can be given, if required.

• Booking Deposit, Solicitor Details, and Contracts

When you have your finance in place and you are in a position to secure your new home, you will pay a booking deposit and provide your solicitor details to the selling agent. A booking deposit amount can vary from €5,000 to €10,000, depending on each development. This deposit is fully refundable until contracts are signed. The booking deposit should be made payable to the sales agent and can be paid by bank transfer (EFT), bank draft or cheque. 

The agent will then issue a sales advice letter to both the vendor’s solicitor and your solicitor. The sales advice letter will hold all relevant details ie your contact details and your solicitor’s, the property address, the purchase price, the booking deposit paid, and the contract deposit due on signing. 

The developer’s solicitor will then issue contracts to your solicitor. Once contracts are issued you will have 21 days to sign and return contracts. During this time, your solicitor will engage with the developer’s solicitor regarding any pre-contract queries that either you or your solicitor may have. 

We would suggest keeping in contact with your solicitor on a weekly basis during this period of the sales process.

• Valuation Report

Your bank will require you to arrange a bank valuation on the property you intend to purchase. The bank will provide you with a panel of approved valuers and the cost of this valuation is payable by the buyer. The valuation report is an assessment of the property to determine its value. Once your lender is satisfied, they will formally approve your loan in writing on the basis of the price of the house and information furnished to them. Your loan pack will issue to your solicitor and will last 6 months. We recommend that you should go through the loan pack in detail and make sure that the names, rates, and terms in the loan pack correspond with what you have agreed with your lender.

• Exchanging Contracts

Once your solicitor is satisfied that all pre-contract queries have been replied to, they will arrange an appointment for you to attend their office to sign contracts. At this stage, the balance of 10% of the purchase price is due and you will be asked to transfer this amount to your solicitor’s account. 

If you are availing of the Help to Buy Incentive, you will need to provide your solicitor with your qualifying amount and the supporting documentation from Revenue and the amount you qualify for will be deducted from the contract deposit at this point in the process. For more information see DNG’S GUIDE TO THE HELP TO BUY SCHEME 

Once unconditional contracts are signed and exchanged, you are now in a legally binding contract. At this stage, both the booking deposit and the balancing deposit paid are non-refundable. 

We recommend that you arrange your life assurance, home insurance and mortgage protection if required, in advance to avoid any delays.

• Snagging

Once the developer has completed the property, you will be invited to inspect it. You can arrange for a surveyor to carry out this inspection or you can do it yourself. The inspection is referred to as snagging and it is your chance to walk through the property to note any items that may require attention. A ‘snag list’ is compiled by you or your surveyor and this list will be provided to the builder. Once all items are completed, you will be invited back to reinspect the property. 

Once snagging is completed, you should contact your lender and your solicitor to advise that you are now in a position to close the sale. 

• Completion Notice

The developer will issue an official notification called the completion notice to your solicitor once the house is ready. The completion notice is issued to notify your solicitor that the sale is due for completion within 14 working days. This will trigger your solicitor to request drawdown from your lender and to arrange for the balance of funds from you, in order to complete the purchase of your new home.

• Closing

Once your solicitor is in receipt of your mortgage funds, they will contact the developer’s solicitor to arrange a closing date. The closing can take between 24 – 48 hours from when the mortgage funds arrive in your solicitor’s account. Once your solicitor has transferred the closing funds to the developer’s solicitor’s account and they confirm that the sale has closed, the agent and the site foreman will be instructed to release the keys to you as the new owner of the property. 

• Changing Utility Accounts

We recommend that you request utility readings from the foreman on site upon closing. You will also need to request the MPRN (Electricity Meter Point Reference Number) and GPRN (Gas Point Reference Number from the foreman upon closing so that you can transfer the utility accounts into your name on the day of closing.