So, you're a first-time buyer wondering how to get a mortgage in Ireland. Then, you've come to the right place! Here's a guide to help you navigate the exciting journey of buying your first home. We’ll cover all the essential steps from securing mortgage approval to calculating repayments. As well as providing home insurance, we love to share top tips and insights with home buyers just like you. We want you to feel supported every step of the way. 

 

In this guide, we’ll cover: 

· How long does it take to get mortgage approval in Ireland? 

· How long does mortgage approval last? 

· How to calculate mortgage repayments in Ireland? 

· How much of a deposit do I need for a mortgage in Ireland? 

· Your mortgage application checklist 

· And more! 

So, let's dive into the details of how to get a mortgage in Ireland! 

 

Answers to Your Mortgage Questions: 

 

How Long Does It Take to Get Mortgage Approval in Ireland? 

Getting mortgage approval in Ireland usually takes between 2 to 6 weeks. The exact time can depend on how complex your application is and how quickly the lender processes it. Delays can happen if your documents are not in order, so make sure everything is correct to keep things moving quickly.  

 

How Long Does Mortgage Approval Last? 

Mortgage approval usually lasts for about 6 months, depending on the lender. You need to finish the property purchase within this period. If not, you'll have to reapply for approval. 

 

How much can I borrow? 

Banks typically allow borrowers to secure a mortgage for up to four times their annual salary. This limit applies whether you're applying alone or jointly with another person. However, some banks may offer exceptions, extending the borrowing limit to 4.5 times the annual income or even 4.7 times in certain cases. 

 

How To Calculate Mortgage Repayments in Ireland? 

Online mortgage calculators are great for estimating your monthly repayments. The repayment amount depends on factors like the loan amount, interest rate, and term length. For example, if you're looking at a mortgage of €330,000 over a 30-year term with an interest rate of 4.5%, you can use a mortgage calculator to find your estimated monthly repayment. These tools help you see what you can afford and plan your budget better. 

 

How much of a deposit do I need for a mortgage in Ireland? 

For first-time buyers in Ireland, the deposit needed for a mortgage is usually 10% of the property's purchase price. This amount is what most lenders ask for when you're buying your first home. Saving up for your deposit is crucial to make the mortgage process smoother. However, if you're using the 'Help to Buy Scheme' it can cover most of your mortgage deposit. 

 

Do I need to have saved the full 10% deposit before applying for a mortgage? 

Not exactly. If you're eyeing a newly built house with the Help to Buy scheme, you might not need the entire 10% deposit upfront. It's best to chat with your broker before applying for the mortgage to get a clear picture of your options.  

 

What things will the lender take into consideration? 

Lenders assess various factors to determine your eligibility for a mortgage. These include how you manage your finances, such as direct debits, standing orders, overdrafts, and any gambling or excessive spending habits. They also evaluate your savings history and ability to save regularly, along with your credit history. Additionally, lenders consider the value of the property, the amount you wish to borrow, the number of applicants, and your job status and security. 

You can apply for your credit history report from the Central Credit History Register.  

 

What other expenses should I think about before applying for a mortgage? 

Before diving into the mortgage application process, it's essential to consider the various additional costs associated with buying a house in Ireland. These may encompass stamp duty, legal fees, valuation fees, survey fees, mortgage protection, property tax, and home insurance. Awareness of these costs from the outset allows for better financial planning and ensures a smoother buying journey. For a more detailed overview of these expenses and further insights, explore our step-by-step guide to buying a house in Ireland. 

 

Your Checklist for Getting a Mortgage in Ireland 

 

1. Work with a Mortgage Broker

Using a mortgage broker can make the application process easier. Brokers have access to many lenders and can help you find the best mortgage option for your financial situation and needs. Similarly to insurance brokers, they can offer advice and support, saving you time and effort. 

 

2. Approval in Principle (AIP)

Before you start looking for a home, it's important to get an Approval in Principle (AIP) from a lender. This initial approval shows how much you can borrow, giving you confidence and clarity as you look for properties within your budget. 

 

3. Gathering Necessary Documents

When considering how to get a mortgage in Ireland, you'll need to collect several documents, including: 

· Proof of identity 

· Proof of address 

· Personal Public Service Number (PPSN) 

· Proof of income (employment summaries, salary certificates, and recent payslips) 

· Statements for savings accounts, including Revolut 

· Statements for any loan accounts 

Having these documents ready will help streamline the application process when getting a mortgage in Ireland. 

 

4. Government Schemes

When considering how to get a mortgage, check out government schemes in Ireland that can help homebuyers. These programs provide financial support and incentives to eligible individuals and families, making it easier to own a home. 

· Help to Buy Scheme - offers a tax refund for first-time buyers of newly built homes in Ireland, helping them with their deposit. 

· First Home Scheme - facilitates first-time buyers by offering financial assistance of up to 30% of the new home's cost, in collaboration with the government and participating banks. 

· Affordable Housing Scheme - aids individuals with moderate incomes in purchasing new homes at reduced prices. 

 

Now that you know how to get a mortgage in Ireland, you'll be better prepared to navigate the process with confidence. Remember to stay informed and seek professional advice when needed. Take proactive steps to secure the best mortgage deal for your situation. 

At InsureMyHouse.ie, we understand the importance of protecting your investment. That's why we offer comprehensive house insurance policies tailored to your needs. Visit our website today to learn more and secure your peace of mind.