First Time Buyer Mortgage
Irish lending rules and secure your mortgage
How to get approved in Dublin and beyond
Buying your first home is likely the biggest financial decision you will ever make. Presently the Irish market offers incredible opportunities for the first time home buyer, but navigating the mix of strict lending rules and generous government schemes can be overwhelming.
At JC Mortgages, we don’t just process applications; we build strategies. Whether you are looking for a first time buyer mortgage in Dublin or a new build in Cork, this guide breaks down exactly how to get approved.
First Time Buyers Guide – Go To:
Am I a First Time Buyer?
To qualify for a first time buyer mortgage Ireland, you must meet specific criteria set by the Central
- You have never purchased, built, or inherited a property in Ireland.
- You have never purchased, built, or inherited a property abroad.
- If buying with a partner, both of you must meet these criteria to be treated as a standard first-time buyer pair for certain schemes.
The “Fresh Start” Principle (You Might Still Qualify)
Many people assume they are locked out of the market because they owned a home previously. Under the Fresh Start principle, you can apply as a first time buyer for State schemes if:
- Separation / Divorce: You are divorced, separated, or your relationship has ended, and you have no financial interest in the previous family home.
Insolvency: You have undergone personal insolvency or bankruptcy and have been relieved of your previous home.
How Much Can I Borrow?
The amount you can borrow is determined by two main factors: your income and your deposit.
The 4x Income Limit
The Central Bank allows first time buyers to borrow up to 4 times their gross annual income.
| Annual Income (Single/Joint) | Maximum Mortgage (4x) |
|---|---|
| €45,000 | €180,000 |
| €60,000 | €240,000 |
| €80,000 | €320,000 |
| €100,000 (Joint) | €400,000 |
Note: Lenders may provide exemptions to this limit for a small number of applicants with strong repayment capacity.
The 10% Deposit Rule
You need a minimum deposit of 10% of the property purchase price. The bank lends the remaining 90% (Loan to Value).
- Example: For a €350,000 home loan, you need a €35,000 deposit.
Government support schemes
Because house prices often exceed the “4 x income” limit, most first-time buyers in Ireland utilise state support to bridge the gap.
A. Help to Buy (HTB) Scheme
This scheme helps you with your deposit. It is a refund of the Income Tax and DIRT you paid over the last 4 years.
- Value: Up to €30,000 or 10% of the purchase price (whichever is lower).
- Requirement: You must buy a new build home or self-build.
- Expiry: Extended until 31 December 2029.
More on: Help to buy scheme or listen on our HTB podcast
B. First Home Scheme (FHS)
If your mortgage and deposit are not enough to buy your home, the State can step in and pay for the shortfall in exchange for an equity share (a % ownership) of your home.
Important: The Interaction between HTB and FHS
If you use both schemes, the rules change slightly:
- With HTB: The First Home Scheme provides up to 20% of the property price.
- Without HTB: The First Home Scheme provides up to 30% of the property price.
Price Ceilings (Selected Areas)
Your property price must be below these limits to qualify for FHS:
| Area | House Price Limit | Apartment Price Limit |
|---|---|---|
| Dublin (All) | €500,000 | €500,000 |
| Cork City | €475,000 | €500,000 |
| Galway City | €450,000 | €450,000 |
| Kildare | €475,000 | €475,000 |
| Meath / Wicklow | €450,000 - €500,000 | €450,000 - €500,000 |
More on: First Home Scheme
Interest Rates: Getting the Best Deal
As a broker, JC Mortgages compares the leading Irish mortgage lenders to find you the best first time buyer mortgage Ireland rates. Rates are split into three categories:
- Green Rates (The Cheapest): For homes with a Building Energy Rating (BER) of B3 or higher (mostly new builds). Rates can be as low as 3.10% – 3.55%.
- Standard Fixed Rates: Certainty for 3-5 years. Typical rates range from 3.60% to 4.50%.
- Variable Rates: Flexible but can change. Some non-bank lenders like Avant Money offer variable rates starting around 3.18%, while traditional banks may be higher.
First Time Buyer - FAQs
Generally, lenders require you to have completed your probation period before drawing down a mortgage. However, if you have a strong track record in the same industry, we may be able to negotiate an exception with specific lenders.
This is a rule allowing people who are divorced, separated, or have gone through insolvency to be treated as first-time buyers for state schemes (like the First Home Scheme), provided they no longer have a financial interest in their former family home.
Not necessarily. If you are buying a new build, the Help to Buy grant (up to €30,000) can often cover the bulk of your 10% deposit requirement. However, you will still need cash for stamp duty (1%) and legal fees.
Approval in Principle (AIP) typically lasts for 6 to 12 months, depending on the lender. It is not a binding contract but proves to estate agents that you are a serious buyer.
The First Home Scheme is an equity scheme where the state buys a share of your private home. The Local Authority Home Loan is a mortgage loan from the council for people who have been refused by two banks. You can sometimes use them together, but they serve different purposes.
First Time Buyers why choose JC Mortgage Brokers?
With 20+ years in the mortgage industry, John Coleman and his team of expert mortgage advisors are ready to help you secure your first property in Ireland, ensuring you have a specialist on hand from the start to the end of your mortgage process.
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