Your mortgage ready checklist
Taking the right steps early may improve your mortgage readiness and help make the buying process feel more manageable. Whether you're planning to buy soon or are just beginning to save, this article outlines practical steps to help you prepare and move from planning to action.
Understand how much you can borrow
Before viewing properties, understand your borrowing capacity so you can set a realistic budget from the start. Current Central Bank lending rules generally allow first-time buyers to borrow up to four times their gross annual income.1
However, lenders also carry out detailed affordability assessments. They will consider your income, regular expenditure, existing financial commitments and your ability to comfortably repay the mortgage over the long term. Even if you qualify for the maximum amount, it is important to choose a mortgage that remains affordable both now and in the future.
Mortgage rates have stabilised compared with the highs seen in 2023 and 2024, although they continue to vary between lenders and mortgage products. Taking time to compare rates and seek professional advice may help you understand the potential overall cost of borrowing over the lifetime of your mortgage.
Save your deposit – and budget for additional costs
Most first-time buyers need at least a 10% deposit, but buying a home involves more than just the purchase price.1
You should also budget for costs such as:
- Solicitor's fees
- Property valuation fees
- Survey costs (where applicable)
- Stamp duty
- Moving expenses
- Home insurance
- Mortgage Protection Insurance
Setting aside additional savings for these expenses can help reduce the risk of unexpected financial pressure and support a smoother transition from saving your deposit to completing your purchase.
It's also important to budget for the ongoing costs of home ownership, including mortgage repayments, Local Property Tax, utilities, maintenance and insurance. Factoring these into your budget from the outset can help you assess whether a mortgage may remain affordable over the long term.
Build a strong savings record
Mortgage lenders are not only interested in how much you have saved. They also want to see that you have consistently managed your finances over time, so keep building a clear savings record. Regular monthly savings can help demonstrate your ability to meet future mortgage repayments and may reassure lenders that you can manage the financial commitment of home ownership. Ideally, your monthly savings should be similar to, or greater than, your expected mortgage repayment.
Avoid unnecessary withdrawals from your savings before applying, as lenders will review your savings history during their assessment.
Review your spending habits
Your recent bank statements play an important role in your mortgage application. Lenders assess your day-to-day spending to understand how you manage your finances and whether you can comfortably afford mortgage repayments.
Before applying, consider:
- Reducing unnecessary discretionary spending.
- Avoiding missed loan or credit card payments.
- Keeping overdraft use to a minimum.
- Avoiding new loans or finance agreements unless essential.
- Limiting Buy Now, Pay Later borrowing where possible.
Small improvements over several months may support your application and help demonstrate responsible financial management.
Organise your documentation
Preparing your paperwork in advance can help make the mortgage process more efficient and may reduce avoidable back-and-forth with lenders.
Most lenders will ask for:
- Photo identification
- Proof of address
- Recent payslips
- Employment Detail Summary from Revenue
- Recent current account statements
- Savings account statements
- Evidence of bonuses or additional income (where applicable)
If you're self-employed, you'll usually need to provide additional financial documentation, such as certified accounts and tax returns.
Understand the Government supports available
Several Government schemes are available to help eligible first-time buyers purchase or build a home. Understanding these options could reduce the amount some buyers need to save and may make home ownership more accessible before beginning a property search.
Help to Buy Scheme
The Help to Buy (HTB) Scheme supports eligible first-time buyers purchasing or building a new home by providing a tax refund that can be used towards their deposit.3 Eligible applicants may be able to claim up to €30,000, or 10% of the purchase price or build cost, whichever is lower, subject to Revenue's qualifying criteria. The scheme applies to new homes valued at up to €500,000 and has been extended until 31 December 2029, subject to any future changes to Government policy.3 Before applying, it's worth checking the latest eligibility criteria to ensure you meet the scheme requirements.
First Home Scheme
The First Home Scheme is a shared equity initiative designed to bridge the affordability gap between your mortgage, deposit and the purchase price of a new home.4 The scheme now supports a wider range of eligible buyers, including certain first-time self-builds and some tenant purchase cases. If you also use the Help to Buy Scheme, the maximum First Home Scheme equity contribution is generally 20% of the property's value, or up to 30% where Help to Buy isn't being used, subject to the scheme's terms and conditions.4 As eligibility criteria and funding arrangements can change, it's always advisable to check the latest Government guidance before applying.
Apply for Approval in Principle
Approval in Principle (AIP) gives you an indication of how much a lender may be willing to lend based on your current financial circumstances. While it isn't a formal mortgage offer, it may help you feel more prepared when beginning your property search.
Having Approval in Principle may help you:
- Search for properties within your budget.
- Demonstrate to estate agents and sellers that you're a serious buyer.
- Act more quickly if you find a suitable home.
Approval in Principle typically remains valid for around six months, although this varies between lenders and may need to be renewed if your financial circumstances change.
Don't forget mortgage protection and home insurance
As you get closer to buying your home, it's important to understand the insurance requirements that come with your mortgage. Most lenders require Mortgage Protection Insurance before your mortgage can be drawn down. This type of policy is designed to repay the outstanding mortgage balance if you die during the term of the loan, subject to the policy terms, conditions and exclusions. Arranging your policy early may help reduce avoidable delays during the final stages of your home purchase.
You'll also usually need buildings Insurance before your mortgage can be drawn down, as lenders generally require assurance that the property is insured against risks such as fire, storm damage or flooding.
Common first-time buyer mistakes
Even well-prepared buyers can make simple mistakes that delay their mortgage application or reduce their borrowing potential.
Some of the most common include:
- Changing jobs shortly before applying for a mortgage.
- Taking out a new personal loan or car finance.
- Making large unexplained cash lodgements.
- Spending part of your deposit before contracts are signed.
- Beginning house hunting before understanding what you can realistically afford.
Planning ahead and maintaining consistent financial habits may help you avoid unnecessary setbacks and feel more prepared as you move through the mortgage process.
How NFP can help
Buying your first home is an exciting milestone, but understanding mortgages, protection requirements and insurance can sometimes feel overwhelming.
At NFP, our advisers are here to support you throughout the process. We can help you understand the protection products you're typically asked to consider when buying a home, including Mortgage Protection Insurance and Home Insurance, so you can make more informed decisions about protecting your investment and financial future.
Whether you're just starting to save or preparing to draw down your mortgage, we can help you understand your options and make informed decisions throughout the process.