• Applicants can only borrow up to 90% of the purchase price of the property.


• However if you are building a new house it is slightly different, it is the lower of 100% of the cost of building your house or 75% of the market value of your house when it is built.


• The maximum amount you can borrow is 3.5 times your gross income (before tax income and excludes bonuses/expenses etc), if you are applying with your partner then you can borrow 3.5 times both incomes.


• A 10% deposit is required by you.

Example: a property costing €200,000 requires a deposit of €20,000 and you can get a mortgage of €180,000.

• A secure income, you must be at least 6 months in your employment (some banks may request longer).


• Proof of repayment capacity through regular savings and rent payments.

Example; If the mortgage repayments are €1000 per month, you must show that you have the capacity to pay this amount back on a monthly basis through your current rent or savings.

• A Good credit record with no missed payments on loans or credit cards. Each bank will run an ICB check on you (Independent Credit Check). This is an independent report that can be generated at the banks request which shows all of your credit history or the last 5 years. It includes records of all loans and debts that you have or had and your repayment record over these past 5 years. The banks are quiet strict on these point although there is may be some leeway given in certain cases.


• You need to have Funds available to cover your deposit plus additional costs such as stamp duty, legal fees, valuation fees etc. This can be made up of savings plus a gift from a family member if required.

• A valid passport or driving license.


• A utility bill with your name and address (less than 3 months old).


• 6 months up-to-date personal current account statements.


• An up to date savings account statements.


• An up to date loan and/or credit card statement(s).


• Your 3 most recent pay slips.


• Your current P60.


• In addition, if you are self-employed, you will need 3 years up-to-date audited or certified accounts, confirmation that your tax affairs are up to date and 6 months recent bank statements from your main business current account.

• Gambling transactions on your current account are prohibited by mortgage providers, if this is something you like to do or have transactions coming out of your account stop this immediately, or at least stop it from your main current account.


• Overdraft facilites are looked at to see if they are used on a regular basis, if you live in your overdraft stop this immediately if possible.


• If you are not already saving regularly start saving regularly on a consistent basis to show repayment capacity. However, try to avoid at all costs dipping into this savings account. The mortgage provider will not look favourably on the fact that you cannot live on your disposable income without using your savings from time to time. You will have to start from scratch and prove you don’t need these savings for a 6 month period to prove repayment capacity.


• Ensure that you don’t miss any direct debit payments for the same reason. This applies to utility bills, loan repayments etc.


• If you are paying rent by cash stop this right now and start paying using a direct debit or standing order. You need to prove you are paying this rent and cash payments are harder to prove.


• No matter how small your credit card bill is pay it off ASAP. Many people make the mistake of neglecting these as they are only small however this affects your credit rating no matter how small the repayments are.

Getting approval in principle means that you have the option of drawing your mortgage when you find a specific property or build your home. It is like being given permission to go house shopping or to start planning your new build. This is why we recommend you apply for the maximum amount you qualify for. You only borrow what you need to purchase or build the property. In fact you don’t have to draw down your mortgage at all if you don’t want to. Your application will become obsolete after 6 months and you will have to reapply.

What is the Help to Buy Incentive?

This is a government incentive scheme for first-time property buyers. It will help you with the deposit you need to buy or build a new house or apartment. You must buy or build the property to live in as your home.

How much is this incentive?

The maximum HTB refund is calculated at the lesser of:

• €30,000 or
• 10% of the purchase price of a new home.
• For self-builds this is 10% of the completion value of the property.

Sign a contract for the purchase of a new house or apartment make the first draw down of the mortgage in the case of a self-build property.

How do I apply for this incentive?

To draw the funds down you must have;

• Signed a contract for the purchase of a new house or apartment
or
• Make the first draw down of the mortgage in the case of a self-build property
You then must fill out a FORM ONE application and send it off to Revenue. It takes about 5 working days to process this form and the Revenue will then issue your solicitor with an Authority to Exchange the funds. The Authority to Exchange is valid for 28 days from the date of your solicitors Form One.

The Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers. It is now available nationwide from all local authorities. The main benefit of such a scheme is that your mortgage repayments will be significantly smaller as the interest rate on the mortgage is much lower. If you have a poor credit rating and have been declined for a mortgage on numerous times before you can still qualify for this scheme.