First Time Buyers
Are you ready to start the journey towards owning your first home? Let’s take the first step, together!
If you are a first time buyer, no doubt you will have a lot of questions to ask:
Should you go direct to the bank?
What is the first step?
How can a broker help?
Should you opt for a fixed, variable or discounted rate?
How much can you borrow and how much will it cost you?
How do you position your mortgage application for approval?
This is where EDUC Mortgages can help. If you are a first-time buyer, home mover or investor we can help you get the best rates on the market. We take the leg work out of applying for a mortgage. Our expert Financial Advisers will guide you through the mortgage maze from start to finish. Our advisers have extensive experience in purchasing properties and can advise you on the purchasing process.
Rules For Borrowing
How much can I borrow?
The amount you can borrow is based on a number of criteria as follows:
- Other loans you may have
- Repayment capacity
You should be in a permanent employment and not be on probation, however exceptions can be made e.g. for doctors who would be on contracts in different hospitals.
The amount you can borrow is 4 times your salary for first time buyers and 3.5 times your salary for subsequent buyers, with deductions taken if you have other financial obligations like child support, dependant children, loans, credit card or if you have a partner who is not working.
Before you apply for a mortgage you should insure that your bank statements are in order. Sometimes you need to put a 6-month plan into place before you apply for the mortgage. This plan should include:
Good money management across all active current and savings accounts.
No missed direct debits or standing orders.
Controlled use of your credit card and ensure a monthly direct debit for minimum payment is set up.
What are the additional costs of purchasing a property?
So lets assume you are purchasing a property for €200,000 you will need the following:
|1% Stamp duty
Mortgage Do’s and Don’ts
Clear your credit card
Ensure that if, you are paying rent, that the rent is paid by direct debit from your bank account to the landlord
If you are living at home and paying parents rent you should also pay this into your parent’s bank account
If you are saving, make sure that the savings are put in on a regular basis. (i.e. weekly or monthly)
Miss any existing loan payments
Miss direct debit payments
Withdraw money from your savings account(s)
Withdraw cash using your credit card
Help To Buy Scheme For First Time Buyers
The Help to Buy (HTB) scheme was introduced in January 2017 to help first-time buyers purchase or self-build a new house or apartment and has been extended to the end of 2024.
The scheme allows first time buyers who purchase a newly built home or plan on building one themselves to claim back up to €30,000 in income tax and DIRT on bank deposit interest paid over the last four years.
This means that first time buyers can now potentially get their full 10% deposit via the scheme and not have to provide any funds themselves. This is subject to the purchase price of the new property being a maximum of €300,000 and the required 10% deposit of €30,000 claimable through sufficient tax paid over the last four years.
This incredible scheme means that those who were previously unable to get mortgage approval due to an inability to save for a deposit, can now qualify for a mortgage for the home of their dreams.
However, lenders will still require mortgage applicants to provide sufficient proof of their repayment capacity and will still be subject to other lending criteria before approval.
- Only new builds or a self-builds qualify.
- To qualify as a first-time buyer you must not have previously purchased or built a home.
- Joint buyers must both be first-time buyers.
- The scheme is for owner-occupiers only.
- You must live in the property for a minimum of five years after you buy or build it.
- Only properties built by a registered contractor are eligible for the scheme.
- You can claim a maximum of 10% of the purchase price of a new home.
- The maximum you can claim is €30,000.
- The amount you can claim depends on the amount of income tax and DIRT paid in Ireland over the previous four years.
- There is a cap on the eligible purchase price of a property of up to €500,000.
- You must take out a mortgage of at least 70% of the purchase price or the final value of the property.
Who We Work With
At EDUC Mortgages, we have access to all of the major lenders in Ireland so we can get you the best rate available on the market.
Start Today With A Free Mortgage Consultation
Secure the best rate on the market for your mortgage to minimise your monthly repayments and protect against rising interest rates. We are here to be your trusted partner every step of the way. So let’s get started!