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.

If you need to finance the purchase of your new home through a mortgage, you will need the following documentation to start the process.

• 6 Months Payslips
• 6 months statements for all bank accounts
• Employer stamped salary certificate
• P60
• Identification; either passport or driving license
• Proof of address

In order to gain mortgage approval, you will need to save for a deposit, which can range from 10% to 30% of the purchase price, depending on the central bank lending rules.

• First-time buyers can have up to a 90% mortgage with a 10% deposit.
• Second-time buyers can have up to 80% mortgage with a 20% deposit.
• Buy-to-let buyers can have up to 70% mortgage with a 30% deposit.

Information correct as of 01/09/2022

First Time Buyer Example:

• Purchaser price: €400,000
• 10% deposit: €40,000

Help to Buy is a government incentive scheme for first time buyers in Ireland aimed at assisting with their deposit for the purchase of their new home and it is worth up 10% of the purchase price, with a maximum amount of €30,000. Those eligible for the scheme are first-time homebuyers, purchasing a new home in the state from a qualified contractor, with a purchase price of up to €500,000 and the scheme is in place until 31st December 2024.

The initiative was first introduced in the Finance Act 2017 and the tax refund is made up of income tax and DIRT tax paid in Ireland by the buyer over the previous 4-year period.

DNG Guide to the Help To Buy Scheme

We recommend that you identify areas that suit you and your family and you should consider the location in terms of proximity to work, family, friends, schools and other local amenities, when you are searching for your new home.

Why not test out the traffic at different times on the journey from work and to visit family, on weekdays and weekends. When you are testing out the traffic, you can also check out the local shops, parks, recreational facilities and sports clubs.

It would be a good idea to call the local schools to confirm that the home you are considering is actually in their catchment area. If you intend to use the transportation facilities such as quality bus corridors or the train/Luas lines, we recommend that you familiarise yourself with the timetables.

We also recommend that you take a walk in the area and get a sense of the community and the surounding neighbourhoods.

Once you have paid your deposit to reserve your new home, the developer’s solicitor will send contracts to your solicitor for signature. Your solicitor will raise pre-contract queries to the developer’s solicitor. Once queries are answered and your solicitor is satisfied, a meeting will be arranged for you to sign contracts. Once you have the contract signed, the contract deposit is due and this is generally 10% of the purchase price, less the booking deposit already paid. 

If you are eligible for the Help to Buy incentive this will be applicable at this stage. The balance of the purchase price outstanding is payable when the sale closes.

We would suggest keeping in contact with your solicitor and your sales agent on a monthly basis to get updates on the build progress of your new home. Building timelines are complex in nature and can be delayed due to a number of factors outside the developer’s or sales agent’s control. 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 completion timeframe, 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 if an extension will be given if required. 

You will need to have your final valuation, mortgage protection, life assurance, and home insurance arranged in advance to avoid any delays before drawdown occurs. As mentioned above you should contact your lender to confirm they are in receipt of all necessary documentation prior to drawdown to avoid delays. Usually, drawdown takes between 7 – 10 working days depending on your lender.

Your solicitor will also advise you of the amount of stamp duty you are liable for on the purchase and they will request that you transfer this amount to them at this stage as the stamp duty is payable to Revenue upon closing.

Guide to Stamp Duty

You can contact the selling agent to arrange key collection and we recommend you follow up with the developer regarding utility readings as the developer will provide you with your MPRN (Electricity Meter Point Reference Number) and GPRN (Gas Point Reference Number)

From all at DNG welcome to your new home.