About Us

Mortgages & Advice

Advice on mortgages and property hunting at your fingertips

First Time Buyers. Getting Started

Couple walking into their new home

Buying your first home is an exciting and nervous process for many first time buyers. Although it might seem daunting, buying your first home needn't be too stressful.

Our First Time Buyer Guide tells you all you need to know about how to prepare for the time that lies ahead.

Just follow our simple step-by-step guide

Step 1. Calculate ALL the costs

Buying your first home can cost you a lot more than just the price of the property. All those extra costs associated with buying a home can build up very quickly.

Stamp Duty:

Stamp duty is a tax that you pay to the government when you buy a second hand home. First time buyers and owner occupiers do not pay stamp duty with the exception of exceptionally large houses. The rates are as follows:

Property 1st Time Buyers Owner Occupiers Investors/New Property
Up to €127,000 - - -
€127,001 - €190,500 - 3% 3%
€190,501 - €254,000 - 4% 4%
€254,001 - €317,500 - 5% 5%
€317,501 - €381,000 3% 6% 6%
€381,000 - €635,000 6% 7.5% 7.5%
Over €635,000 9% 9% 9%

Exceptions for paying stamp duty:

  • If you are buying a new home
  • The floor space is equal to or less than 1,346 square feet / 125 square metres
  • If your mortgage exceeds €253,947.61 duty is charged at €1.27 for every €1,269.74 borrowed.
  • The home or your only home for at least five years and you will not earn any rent on the property in this time.

Deposits

Saving for a deposit is a vital part of the mortgage process. A steady savings record helps when applying for a mortgage. Savings can reduce the necessity for short term borrowing. It is important to avoid other forms of borrowing as much as possible when purchasing a property. The amount of loans you have when you apply for a mortgage will affect the mortgage amount.

Legal Fees:

Solicitor's fees can vary so it is worth shopping around. Many solicitors charge 1% of property value plus 21% vat. You are likely to be charged for other expenses such as telephone charges and for any third party costs that may crop up, i.e. registry of deeds office or land registry.

Home insurance

Home insurance is vital. All mortgage lenders in Ireland require that properties they are lending against be insured for fire and perils risk.. Most borrowers require that personal possessions, furniture etc., are insured. This is not compulsory from the lenders point of view but is advisable to cover potential risks.

Home insurance depends on:

  • Required insurance amount
  • Location
  • Contents Cover
  • Extra all risk cover

Discounts may be available depending on:

  • Age
  • Alarm
  • Smoke Detectors
  • Occupation
  • Security
  • Neighbourhood watch
  • If you home is occupied during the day.

Surveyors Fees:

It is recommended that you employ a professional surveyor to check for any structural problems. The structural survey is usually not the condition of the loan offer. Shop around but use a reputable company and agree all fees in writing before the job is started.

Valuation Fees:

The lender requires an independent valuation from a qualified valuer before they will issue a formal letter in respect of a property.

Life assurance

Life cover is mandatory for all home loans. If you or a joint applicant dies during the term of the mortgage, an insurance policy covering death, is payable and repays your mortgage.

Premiums depend on:

  • Age
  • Health
  • Occupation
  • Smoker / Non-smoker

These factors vary from 1 insurance company to another.

^ Back to top

Step 2. Finding Your New Home

Happy couple outside house

The search for your first home is one of the most exciting times of your life. You need to decide whether you want to live in the city or suburbs, house or apartment, new or second hand and so on.

There are so many important considerations to make once you choose an area then, such as is there satisfactory transport, schools, shops and amenities.

Once you have then chosen a number of properties you like arrange to view them at a time that suits you, and if you want a second or third look don't be afraid to ask. Hunt for Property.ie has an extensive listing of property so begin your search today.

^ Back to top

Step 3 - Make your offer

Once you have decided on your property you will be required to make an offer to the estate agent. They will then relay that offer to the people selling the property, if it is acceptable the estate agent will then notify you immediately. If there is more than one interested party in the property the estate agent is required by law to keep everyone informed of the bidding and give them an opportunity to consider a counter bid. Once your bid is accepted you will be required to place a booking deposit on the property and will sale agree the property for you. At this point neither party has entered into a legally binding contract to purchase the property, this will only happen at the signing of the contracts.

^ Back to top

Step 4 - Choose your mortgage

Couple painting

You're now ready to apply for a mortgage. Your Mortgage Advisor will help you choose the most suitable mortgage for your needs and will prepare the necessary paperwork to get you moving. Your Mortgage Advisor will help you to complete your application form.

For legal reasons, we'll also need you to supply the following documents:

  • Proof of identity - your current passport or full driving licence
  • Proof of residence - 2 recent utility bills
  • Last 3 months' bank statements
  • Evidence of deposit

^ Back to top

Step 5 - Get your Letter of Offer

If your application is successful, your mortgage lender will send you a formal loan offer that sets out the conditions of your loan. Your solicitor will also receive a copy of the letter of offer, with a request to proceed to the legal formalities.

^ Back to top

Step 6 - Signing of contracts

At this stage of the process you will now entering into a legally binding agreement to purchase the property. You will be required to sign a contract to that effect and pay over the balance of your deposit, normally up to 10% of the purchase price. At this point you will also sign acceptance of the loan offer.

^ Back to top