Understanding your financial situation
Before you look at property websites or book viewings, start with your numbers.
Know your income and outgoings
List your:
- Net and gross income
- Regular monthly bills (utilities, childcare, subscriptions)
- Existing credit (loans, car finance, credit cards, overdrafts)
Lenders will stress-test your ability to afford repayments now and if interest rates rise, so it’s better to be realistic from the outset3
Check your credit history
Your credit report shows how you’ve handled borrowing in the past. Missed payments or over-reliance on short-term credit can make lenders nervous.
- Order your report from the Central Credit Register (CCR) and/or a credit bureau.
- Correct any errors.
- Aim to clear or reduce high-interest debts ahead of applying.
Understand Irish lending rules
Central Bank of Ireland mortgage measures set broad limits on how much you can borrow:
- Loan-to-income (LTI):
First-time buyers can usually borrow up to 4x gross income. - Loan-to-value (LTV):
You must provide at least a 10% deposit on the purchase price (90% LTV)4.
There are limited exceptions, but most first time borrowers fit within these rules.
Demonstrating repayment capacity
Beyond your deposit, lenders want to see you can comfortably handle mortgage repayments.
Show consistent savings
- Set up a dedicated savings account and move a fixed amount into it every month.
- Avoid dipping into this unless absolutely necessary.
- Lenders will look for a clear pattern of regular saving over time.
Prove your payment history
If you’re renting:
- Keep records of rent paid by standing order.
- Provide 6-12 months of bank statements showing on-time rent and other commitments.
This helps show you can handle a monthly mortgage repayment of a similar size.
Improve your debt-to-income ratio
Your debt-to-income (DTI) ratio compares your monthly debt payments to your gross monthly income. The lower it is, the more comfortable lenders feel:
- Clear overdrafts and personal loans where possible.
- Avoid taking on new loans or car finance in the months before applying.
Preparing your documentation
Having your paperwork ready speeds up approval and reduces back-and-forth.
Most lenders will look for:
- Proof of income - recent payslips, employment letter, P60/earning summaries, and bank statements.
- Proof of savings and deposit - bank/savings statements, gift letters if part of the deposit is gifted.
- Statements for existing credit - loans, credit cards and overdrafts.
- Photo ID and proof of address - passport/driving licence and recent utility/official bills.
Understanding deposit sources and schemes
Your deposit can come from:
- Personal savings
- Gifts from family (with formal confirmation)
- Inheritance
- Sale of shares or investments
On top of this, first-time buyers may qualify for:
Help to Buy (HTB)
The Help to Buy scheme refunds income tax and DIRT you paid over the previous four years, up to €30,000 or 10% of the property price5 whichever is lower. The enhanced scheme has been extended to 31 December 2029.
First Home Scheme (shared equity)
The First Home Scheme is a shared-equity scheme where the state (and participating banks) can fund up to 30% of the cost of a new home in exchange for an equity share, helping bridge the gap between your deposit, mortgage and purchase price6.
Using both schemes together can substantially reduce the cash deposit you need.
Budgeting for extra costs
Don’t forget the non-purchase costs:
- Legal fees: typically from €2,000-€2,500 plus VAT, depending on your solicitor and the complexity of the purchase.
- Stamp duty: usually 1% of the purchase price for most residential homes.
- Valuation and survey: your lender will require a valuation; you may also choose a structural survey/snags report, especially on older or self-build properties.
Why use a mortgage broker?
A broker can:
- Look across multiple lenders, not just one bank
- Help you understand how much you can realistically borrow
- Explain which lenders are most likely to approve your application
- Guide you through documentation and timelines