First Time Buyers

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Let us help you make the right move

  • Wherever you are on your home buying journey, we’re here to support you along the way. Whatever your mortgage needs, we have access to a range of competitive mortgage rates so you can choose the rate that’s right for you.
  • We can arrange your mortgage with the following lenders: Haven, KBC, Permanent TSB, Ulster Bank, Finance Ireland and ICS mortgages. Identifying the right lender for your mortgage is very important.
  • We can help you to navigate through the different interest rates and cash back offers which are available.
  • For example, a mortgage of €250,000 over a 30-year term with a 2.5% interest rate would mean a monthly repayment of €987.80 compared to €1,122.61 for a 3.5% interest rate. This is a difference of €48,531.60 over the term of the mortgage.
  • According to figures from the BPFI’s (Banking & Payments Federation Ireland) December 2020 report shows that first time buyers account for 56.6% of mortgages in Ireland during 2020.

First Time Buyer’s Deposit

  • Your deposit is the amount of money you’ve saved up to put towards your first home and it will help determine how much you then need to borrow as a mortgage. The more money you’ve saved as a deposit, the less you’ll need to borrow from the bank. And if you have a bigger deposit, you’ll have access to more competitive mortgage rates.
  • First-time buyers are allowed a maximum loan-to-value of 90%, meaning they’re required to provide a minimum deposit of 10% upfront for any property. So, for a property valued at €200,000 you need a deposit of €20,000, which would mean a mortgage of €180,000.
  • As well as saving for your initial deposit, you’ll also need funds to put towards associated costs like, solicitor’s fees, stamp duty, mortgage protection and home insurance.

First Time Buyer’s Mortgage

  • When you apply for a mortgage, the lender will assess your affordability by looking at your annual salary and any other income you receive, as well as all of your outgoings, including credit card and loan debts, household bills, childcare, travel and general living costs.
  • The lender will also check your credit history to see whether you’re a reliable borrower and will use this and its affordability assessment to decide how much you can borrow.
  • Central bank guidelines allow for a maximum loan-to-income – LTI – of 3.5 times your annual income. This is assessed on various criteria depending on your type of employment, regular income and if any additional allowances.

Help-to-Buy

  • The Help to Buy (HTB) incentive helps first-time buyers of newly-built homes to buy a new house or apartment. It also applies to once-off self-build homes. It only applies to properties costing €500,000 or less and the loan to value must be above 70%. The Help to Buy incentive scheme gives a refund of income tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous 4 tax years.
  • If you sign a contract for a new house or draw down on a self-build mortgage between 23 July 2020 and 31 December 2021, you are eligible for the increased relief.
  • How much can I claim under the Help-to-Buy incentive? You can claim relief on the lesser of:
  • €30,000;
  • 10% of the purchase price of the property;
  • 10% of the completion value of a self-build;
  • The amount of income tax and DIRT you paid for the previous 4 years.
  • Based on a purchase price of €300,000 there is possible relief of available of €30,000. For a couple that was planning on saving €1,000 per month for their deposit, this will save them 2.5 years (€1,000 x 30 = €30,000)
  • Current Help-to-Buy Rates
  • House Price Relief Available Rate
    €200,000 €20,000 10%
    €250,000 €25,000 10%
    €300,000 €30,000 10%
    €400,000 €30,000 10% up to €300,000
    €500,000 €30,000 10% up to €300,000
    €600,000 Zero 0%
  • Full details of the Help-to-Buy scheme are available here.

When to apply for a Mortgage

  • Before you start viewing properties, it’s a good idea to get a mortgage agreement in principle from a lender or a couple of lenders. This will give you an idea of how much you can borrow and it will prove to estate agents you are serious about buying. Having an idea of how much you can borrow will help you work out how much you can afford to pay for your new home, and should give you a better idea of your price range when it comes to viewing houses.

Monthly Mortgage Repayments

  • How much you’ll pay in monthly mortgage repayments will depend on what type of mortgage you get.
  • Fixed Rate: a fixed rate mortgage will keep your monthly mortgage repayments at a set rate for two, three or five years – although in some cases, you can fix for as long as 10 years. Once the deal has ended, it’s best to switch mortgages rather than remain on your lender’s standard variable rate – SVR – which is unlikely to be competitive.
  • Variable Rate: as the name suggests, variable rates are subject to change, meaning that the interest rate can go up or down subject to a variety of factors.
  • Unpredictability might not be the most attractive option for those looking for stability but it’s important to know that variable rates offer the most flexibility. Variable rates allow you to top up, extend or pay extra off your mortgage without having to pay any penalties.

Let us help you

  • Wherever you are on your home buying journey, we’re here to support you. Book a mortgage appointment today by calling on 1890 300 303 and we’ll guide you through the process.

Get in Touch

Contact one of our local Financial Advisors on 1890 300 303 to discuss your options. Alternatively, request a call back and one of our Advisors will be in touch.

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Important Assumptions

For the purpose of determining the term over which pension contributions are made, we have assumed your birthday was exactly six months ago.

If your target retirement age is lower than the age at which the Social Welfare pension commences (age 68 if you are born on/after 01/01/1961, age 67 if born before this date but on/after 01/01/1955 and age 66 if born before 01/01/1955) the calculations allow for funding for this gap, in addition to the cost of the annuity.

You are entitled to a full Social Welfare pension of €248.30 per week as at March 2019 which is assumed to increase by 2.5% per year.

You are saving for the difference between the Social Welfare pension and your target monthly income in retirement.

We have allowed for inflation of your target monthly income of 2.5% per annum between now and your retirement date.

Any other private pension provision you may have in place has not been taken into account.

Your monthly pension contribution increases by 2.5% each year up until your retirement age and is invested in a pension plan with an annual management charge of 1% and a 5% charge on each contribution, in line with the Standard PRSA fees and charges maximum limit.

A Gross Investment Return of 4.2% per annum on your savings. This is not a forecast because the value of your investment may grow at a faster or slower rate than assumed and the value of your investment may be expected to fall from time to time as well as rise.

On retirement you purchase an annuity which escalates at 1.5% each year, has a 5-year guarantee and is payable monthly in advance. The annuity rate assumes a post retirement interest rate of 2% per annum and no spouse’s pension. The actual annuity rate will depend on the selection of dependant’s pension, guaranteed period and the escalation rate, as well as interest rates prevailing when the annuity is purchased.

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