So we’ve consulted and organised your paperwork, and now we know how much money the bank will lend you for a mortgage, you have your mortgage in principle. The next step is about how much money you will need to put down for a down payment also known as mortgage deposit for your property purchase.
This is determined by the Central Bank, which mandates that first-time buyers cannot receive more than 90% financing.
Therefore, they’ll have to put 10% down as an initial deposit payment. Of course, if we have a €300,000 property, that equates to a €30,000 mortgage deposit. But you will need more money than that put away, since there are other affiliated fees and costs when buying a home.
For instance, you will need to pay the stamp duty, legal fees, a survey for a second-hand property (around €500 to €1,000) and the valuation (around €150). And don’t forget the need for furniture, home goods, and moving costs, which can really add up!
All told, I anticipate that with putting 10% down on a €300,000 property, you may need €37,000 to €39,000 total.
Remember that those mortgage deposit funds can come from:
- Your savings
- The Help-to-Buy Scheme if it’s a new property
- Gift funds from family members
For more personalised advice on a ‘Mortgage deposit Ireland’ contact JC Mortgages