As an educator, you spend much of your time helping others achieve their goals, but when it comes to your personal ambitions—like buying a home—let us be the ones to support you! Saving for a mortgage deposit is no mean feat, especially with rising property prices in Ireland and a minimum deposit requirement of 10% of the property purchase price. But with the right plan in place, your mortgage deposit is within reach. Whether you’re preparing to buy your first home or thinking of upgrading, this article offers practical tips tailored to help you save for that all-important deposit.
Set a Clear Savings Goal: Understand How Much You Need
While our recommendation to clients is to always be saving, if you’re not already doing so, having a clear understanding of exactly how much deposit you might need is a good place to start. In Ireland, most lenders require a minimum deposit of 10% of the property’s value for first-time buyers, and 20% for those upgrading or buying a second home.
For instance, if you’re looking at a house valued at €350,000, you’ll need a deposit of €35,000 (10%) as a first-time buyer. Having a specific target will help you structure your savings plan and keep you motivated.
Create a Budget and Track Your Expenses
Saving for a mortgage deposit means getting serious about your budget. As a teacher or lecturer, you likely have a steady, predictable income, which makes budgeting easier than for some other professions. Start by listing all your income and outgoings to see where your money is going each month. This can be an eye-opening experience for many!
Break down your expenses into categories like housing, utilities, transport, food, and discretionary spending (e.g., entertainment, dining out, coffee!). Once you have a clear picture of where your income is being spent, you can assess where you can cut back and put limits on your spending in some categories
Cut Back on Non-Essential Spending
While we all need to enjoy life, cutting back on non-essential spending is one of the quickest ways to boost your savings. Small changes like eating out less, or reducing your takeaway coffee habit, can add up significantly over time. Consider the “30-Day Rule” for any big purchases: if you see something you want, wait 30 days before buying. Often, you’ll find you don’t need it after all!
Set Up a Dedicated Savings Account
If you don’t already have a savings account in place (and believe us, you should), having a separate account for your mortgage deposit is highly advisable. By keeping your deposit fund separate from your regular current account, you’ll be less tempted to dip into it for everyday expenses. Choose an account that doesn’t allow easy withdrawals, which will help you avoid impulsive spending. Some credit unions or banks offer savings accounts tailored to future homeowners e.g. Bank of Ireland’s “MortgageSaver” Account.
Automate Your Savings
One of the easiest ways to save consistently is by automating the process. Set up a direct debit to transfer a portion of your salary into your savings account as soon as you get paid. This way, you’re prioritising savings before you even have a chance to spend the money. Start with 10% of your income if possible, and gradually increase this amount if you find you can manage with less disposable income.
Take Advantage of the Help-to-Buy Scheme to Boost your Mortgage Deposit
This government initiative allows first-time buyers who are purchasing a new home to claim a rebate of up to €30,000 from the Revenue Commissioners on income tax to put towards your deposit. If you’ve been paying income tax for the past four years and are purchasing a newly built house or apartment, this could give your savings a significant boost. Make sure you meet all the criteria for the Help-to-Buy scheme and that the property you’re interested in also qualifies. Read our Mortgage Schemes Helping First Time Buyers in Ireland article for more information.
Supplement Your Income: Use Your Skills
One of the great things about being in the education sector is that you have skills that are in high demand outside of the classroom. Consider taking on extra work like tutoring, offering grinds, or marking exams to boost your income. Even a few hours a week could make a difference to your savings. Websites like TutorHub or First Tutors Ireland can help connect you with students looking for private lessons, allowing you to earn extra money from the comfort of your own home.
Maximise Your Income During the Summer Break
Unlike many professions, teachers have extended breaks during the summer months (and we know how precious these months are). Using this time, however, to take on seasonal work or develop side projects to help you save faster can make a big difference. Whether it’s working at summer camps, marking exams, or even renting out a room on platforms like Airbnb, the extra income can go directly toward your deposit. Look into summer tutoring opportunities or consider writing educational materials for publishers, which can often be done on a freelance basis. We know that this tip is probably the least palatable, but sometimes, needs must!
Make Use of Union Benefits
If you’re a member of a union, you may have access to specific financial products or advice that could help you with your savings goals. Check out the INTO, TUI, ASTI, IFUT or other relevant unions for special financial offers for members.
Saving for a mortgage deposit is a big challenge for most, but with planning, budgeting, and a few extra income streams if needed, you can get there. Stick to your plan, stay disciplined, and soon, you’ll be on your way from the classroom to your very own cosy living room.
Get Mortgage Ready with EDUC Mortgages
Our team has been helping teachers get mortgage ready for over 20 years. Talk to us today by calling 01 299 5020 or emailing info@educmortgages.ie and one of our expert advisors will get in touch to answer any questions you might have, from saving for your deposit, to assessing how much you might reasonably afford to borrow. Let us be the ones to help you!
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