The following are the most common questions we get asked by First-Time Buyers about the mortgage deposit.
What level of deposit does a First-Time Buyer need to show?
- Minimum 10% of the purchase price
- Legal fees (these can vary)
- Stamp Duty (1% of the purchase price)
How much deposit do I need before applying for a mortgage?
We suggest holding off on applying for a mortgage until you are at most 2 – 3 months savings off the amount you need to show
How about gifted funds – can I include them?
- All you will need is a gift letter signed when making the application
- The gift funds can come at a later point in the process
- Most lenders have their own gift forms, and most brokers will have a template form that is accepted by most lenders
What is a booking deposit?
- This is an amount (typically €5,000 -€10,000) you are expected to pay to the estate agent in order for them to take the house off the market
- It is fully refundable if you decide not to proceed with the purchase, up until you sign contracts!
What can my deposit include?
- Your own built-up savings
- Help to Buy Scheme (if purchasing a new build)
- Gift (from a family member)
Can I use money from abroad?
- You can have the money in a foreign bank account at the time of application
- You will need to have moved these funds into an Irish bank account prior to receiving your Loan Offer and prior to signing contracts for the house purchase
What if I want to avail of the Help to Buy scheme?
- You will need a copy of your HTB approval at the point of application so it is worth starting that process a little bit in advance of making your mortgage application.
What is a contract deposit?
- 10% of the purchase price
- Booking Deposit already paid forms part of this amount
- Paid on signing of contracts
- This is typically not refundable as, by this stage, you are contractually bound to purchase the property