All Things Housing

How Much You Need to Save Before You Apply for a Mortgage

Most people think of the deposit as the only thing they need to save for, but it’s really the starting point. If you’re a first-time buyer, Central Bank rules mean you need a minimum 10% deposit. On a €500,000 home, that’s €50,000. On top of that you’ll need to budget for:

• Stamp duty: 1% of the purchase price on most residential property (rising to 2% on the portion between €1 million and €1.5 million, and 6% above that). On a €300,000 home, that’s €3,000.
• Solicitor’s fees: typically €1,500 to €3,000 plus VAT and outlay (Land Registry fees, searches, etc.).
• Survey/valuation: usually €150 to €400, and most lenders require their own valuation as part of the mortgage process.
• Mortgage protection and home insurance: mortgage protection life cover is a legal requirement for most mortgages in Ireland, and buildings insurance is required before drawdown.
• Furnishing and moving costs: often underestimated, but worth building into your figure from the start.

A realistic rule of thumb is to budget for total upfront costs of 12-14% of the purchase price once stamp duty, legal fees and other costs are added to your deposit. The earlier you build this into your savings plan, the less pressure there is in the final months before drawdown.

Central Bank Mortgage Lending Rules: How Much Can You Actually Borrow?

Every regulated lender in Ireland has to work within two Central Bank limits: Loan-to-Income (LTI) and Loan-to-Value (LTV).

Loan-to-Income:

First-time buyers can borrow up to 4 times gross annual income.

Second and subsequent buyers can borrow up to 3.5 times gross annual income.

For example, a first-time buyer couple earning €50,000 and €45,000 (€95,000 combined) could, in principle, borrow up to €380,000 under the LTI rule. A second-time buyer on the same combined income would be capped closer to €332,500.

Loan-to-Value:

First-time and second-and-subsequent buyers can borrow up to 90% of the property value, meaning a minimum 10% deposit.

Buy-to-let purchases are capped at 70% LTV, meaning a minimum 30% deposit.

Exceptions do exist. Lenders are allowed to go above these limits for a portion of their lending each year.

Government Supports for First-Time Buyers

There are three main state supports worth understanding before you start house hunting.

• Help to Buy scheme
• First Home Scheme
• Local Authority Home Loan

What Lenders Look at Beyond the Central Bank Rules

This is the part many buyers overlook. Meeting the Central Bank’s LTI and LTV limits doesn’t guarantee approval, because every bank also applies its own internal credit criteria on top.

Underwriters typically look closely at:

• Six months of bank statements, checking for consistent saving patterns, unexplained lodgements, gambling transactions, and heavy use of Buy Now Pay Later services.
• Existing debt and credit history, including your Central Credit Register record and any missed payments.
• Employment stability, particularly if you’re in a probationary period, on a fixed-term contract, or self-employed (where lenders generally want two to three years of accounts).
• Repayment capacity, meaning your ability to comfortably absorb the new mortgage repayment alongside your existing outgoings, often stress-tested at a higher notional interest rate.

Having first-hand experience of mortgage underwriting, our advice is to start managing your finances for mortgage approval six to twelve months before you plan to apply, not just once you’ve found a property. Small habits, such as reducing discretionary spending, clearing short-term credit, and showing a consistent monthly saving pattern, make a real difference to how an underwriter views your application.

If you work with us we can show you what to do and what to avoid doing in the lead up to your mortgage application date in order to give yourself the best chance of securing the mortgage you need.

Trading Up: Moving to a Larger Family Home

If you already own your home and are planning to move to something bigger, you’ll be classified as a second-and-subsequent buyer, which brings a lower LTI limit (3.5 times income) but the same 90% LTV limit as first-time buyers.

The main complexity for movers is usually timing. Do you sell first and then buy, or buy before you sell? Bridging finance can help here. You’ll also need to factor in stamp duty on the new purchase, and if there’s a gap between selling and buying, temporary accommodation and moving costs.

If your existing home has been your Principal Private Residence throughout your ownership, any gain on its sale is generally exempt from Capital Gains Tax, which is a useful planning point when weighing up trading up against other options.

Using Your Home to Help Fund Your Retirement

For clients further along the financial lifecycle, the family home is often one of the largest assets on the balance sheet, and there are a few ways it can be brought into a retirement plan:

Downsizing or rightsizing: selling a larger home and buying something smaller releases equity that can supplement pension income, and the Central Bank’s 2026 bridging loan changes were specifically designed to make this move easier for older homeowners.

Equity release: allows you to draw down a tax-free lump sum or income stream secured against your home without moving, though the compounding interest and impact on the eventual estate need careful modelling before proceeding.

Using property as part of a broader cashflow plan: rather than looking at the home in isolation, we typically model it alongside pensions, investments, and other assets to see how it fits your overall retirement objectives.

This is a decision with long-term consequences, so it’s worth having it properly modelled rather than made on assumptions. It’s an area where cashflow planning is particularly useful, since it shows you the real trade-offs between staying put, downsizing, or releasing equity.

Learn more about Financial Planning in this short video;

About Financial Planning

Financial Planning is about aligning your money with your goals. It means deciding what it is you want to achieve in the future and ensuring that your finances are structured optimally and efficiently so that you arrive at each event in your life with the resources you need to fulfil your objectives.

When we model your cashflows we can determine if you are on course to achieve your future objectives. If the graph shows that you aren’t currently on course we’ll give you a step plan of actions to help you to close the gap and show you how the graph changes if you implement these. This can be a powerful tool in motivating you to take the actions which are required to achieve your financial goals.

The service doesn’t stop there. Research by the investment management company Vanguard has shown that investors who have the guidance of an adviser can achieve investment return of up to 3% per year more than unadvised clients. We can be an ongoing resource for you as you work towards achieving your objectives.

Many of our clients tell us that they feel that what they have been getting is sales, and they want advice. Talk to us today about getting real advice.

Check us out in the media here.

Frequently Asked Questions About Housing and Mortgages in Ireland

How much deposit do I need to buy a house in Ireland?

Under Central Bank rules, both first-time buyers and second-and-subsequent buyers need a minimum 10% deposit (90% LTV limit). Buy-to-let purchases require a minimum 30% deposit. On a €500,000 home, a first-time buyer would need at least €50,000 saved, on top of stamp duty, legal fees, and other purchase costs.

How much can I borrow for a mortgage in Ireland?

Under the Central Bank’s Loan-to-Income rules, first-time buyers can generally borrow up to 4 times their gross annual income, and second-and-subsequent buyers up to 3.5 times. Some lenders can offer exceptions above these limits for a small proportion of borrowers, up to 4.75 times income for first-time buyers in certain cases, but these are limited and not guaranteed.

What is the Help to Buy scheme and how much can I claim?

Help to Buy is a Revenue scheme that refunds the Income Tax and DIRT you’ve paid over the previous four years, up to a maximum of €30,000 or 10% of the purchase price, whichever is lower. It’s only available on new-build homes and self-builds priced at €500,000 or less, and the scheme currently runs to the end of 2029.

How much is stamp duty on a house in Ireland?

Most residential property purchases attract stamp duty of 1% of the purchase price. Above €1 million, the rate rises to 2% on the portion between €1 million and €1.5 million, and 6% on any value above €1.5 million. There is no reduced first-time buyer rate, everyone pays the same rate.

Can I borrow more than four times my income for a mortgage?

In limited cases, yes. Lenders are permitted to grant a small percentage of loans above the standard Central Bank limits each year, which can allow some first-time buyers to access up to 4.75 times income, and second-and-subsequent buyers up to 4.5 times. These exceptions are at the lender’s discretion and are typically reserved for borrowers with strong overall financial profiles.

What is the First Home Scheme and how does it work?

The First Home Scheme is a shared equity scheme where the State, through participating lenders, takes a stake of up to 30% in your new home in exchange for reducing the mortgage you need to borrow. If you’re combining it with Help to Buy, the maximum First Home Scheme contribution drops to 20%. No interest is charged on the State’s stake for the first five years.

What happens if my mortgage application is refused?

A refusal isn’t the end of the road. Your lender must explain the reasons, which gives you the chance to address the issue and reapply, either with the same lender or a different one. If you’re refused by at least two commercial lenders, you may be eligible for the Local Authority Home Loan, a government-backed mortgage aimed at buyers who can’t secure enough finance elsewhere.

Can I use the equity in my home to help fund my retirement?

Yes, there are several routes, including downsizing to a smaller property and releasing the difference, or using an equity release product to draw an income or lump sum without moving. Recent changes to Central Bank bridging loan rules have also made it easier for older homeowners to buy before they sell when downsizing. The right approach depends on your wider retirement plan, so it’s worth having this modelled properly rather than deciding in isolation.

Information correct as at 04/08/2026