How to buy your first home in Ireland

The Central Bank sets loan-to-income limits all lenders must follow.

• Single buyer: max 4x gross annual income
• Joint buyers: max 3.5x combined gross income
• On €60k salary alone: max mortgage = €240,000
• Banks stress-test at approx. 2% above the offered rate
• Exceptions exist for up to 15% of new lending — but plan to the standard limits

First-time buyers need at least 10% of the purchase price saved.

• Minimum deposit: 10% of purchase price
• On a €350,000 property: €35,000 required
• Help to Buy (Step 3) can cover up to €30,000 of this on new builds
• Lenders want 6–12 months of regular, consistent savings history
• Family gifts are allowed with a signed letter confirming it is not a loan

Three schemes can add tens of thousands to your buying power.

• Help to Buy: up to €30,000 tax refund on new builds priced at €500,000 or less
• First Home Scheme: government takes up to 30% equity stake to bridge the gap (20% if combined with HTB)
• FHS price caps vary by county: €475,000 in Dublin
• LDA Affordable Purchase: below-market homes on State land, income-tested
• LDA limits: €96,000 single / €128,000 couple
• HTB and FHS can be combined for maximum benefit

You need AIP before making offers, and a formal offer before closing.

• AIP (Agreement in Principle): lender confirms how much they will lend, valid 6–12 months
• Formal loan offer: issued after you go sale agreed on a specific property
• Documents: 6 months bank statements, 3 months payslips, P60, photo ID, proof of address
• Self-employed: 2 years audited accounts instead of payslips
• A broker searches all lenders for the best rate and is usually free to you

Search the main portals and always check the BER and price history.

• Main portals: Daft.ie and MyHome.ie
• BER (Building Energy Rating): legally required on every listing — A or B is best
• Homes below BER C can be significantly more expensive to heat
• Property Price Register: public record of every sale since 2010

Offers are verbal through the agent. Sale agreed is not legally binding.

• Offers are made verbally through the selling estate agent, not in writing
• Once accepted: pay booking deposit (€5,000–€10,000) to take the property off the market
• Booking deposit is fully refundable before contracts are signed
• "Sale agreed" is not legally binding — either party can walk away before exchange
• Have your AIP letter ready — agents and vendors take offers more seriously

Your solicitor handles title checks, contracts, and the transfer of funds.

• Instruct a solicitor before contracts are signed
• Your solicitor: title searches, planning checks, contract review, funds transfer, title registration
• Contracts exchanged: pay remaining deposit (10% minus booking deposit paid). Now legally binding.
• Closing date agreed: usually 4–8 weeks after exchange
• Closing day: solicitor transfers funds to vendor, you collect the keys

Two inspections — one for you, one for the bank. Both are required.

• Structural survey (your cost, €300–€600): independent engineer checks defects, damp, and roof. Never skip this.
• Mortgage valuation (lender's cost, €150–€200): confirms the property is worth what you are paying. Not a structural check.
• Survey issues can be used to renegotiate price or withdraw before contracts are signed

Home insurance and mortgage protection must be in place before funds are released.

• Home insurance: required from day of drawdown, bank must be named on the policy
• Mortgage protection: required by law in Ireland — pays off the mortgage if you die during the term
• Signed loan offer must be returned to the lender
• Solicitor issues certificate confirming title is clear
• After closing: solicitor registers title in your name (takes several weeks)