Yes, in Ireland you need a mortgage deposit in order to successfully get a mortgage to buy property. Below we have detailed how they work and how much money you will need to have saved before making an application.
A mortgage deposit?
This is the money you need to put towards buying a property alongside the money you get from a mortgage. This protects your lender in case you fall behind on repayments.
*For example, if you contribute €40,000 towards buying a property worth €200,000 you have a 20% deposit. The remaining 80% (€160,000) you would need to borrow using a mortgage; this is also called your loan to value.
*This example is provided for illustration purposes only. Subject to underwriting criteria, terms and conditions apply.
How much of a mortgage deposit do I need?
In Ireland the minimum deposit required is:
- 10% if you’re buying your first home
- 20% if you’ve previously owned a property
It is important to note if you have a larger deposit, you can access cheaper mortgage rates on the market and get greater deals.
Tips to help you save for your mortgage deposit
Saving for a mortgage deposit can take some time so we have put together some tips to help you along the way:
- Moving in with family to save on rent
- Being savvy with your bills making sure to switch to the cheapest provider e.g. phone bills, electricity, internet.
- Getting in a good habit of saving each month. Try setting up a standing order.
- Reduce spending where possible e.g. takeaways, online shopping.
An incentive to help with your mortgage deposit
There are some ways to get help towards your mortgage deposit so make sure to reach out to our Financial Services Team here at Hastings Insurance Brokers, we can research some of the most suitable options to suit your circumstances. For example if you are a first-time buyer in Ireland, purchasing a new build home, you could qualify for the Help to Buy incentive.
If you would like any further information on starting your mortgage journey contact our Financial Advisors to unlock their expert knowledge today.