Mortgage Deposit – what you need to know as a First-Time Buyer

Mortgage Deposit – what you need to know as a First-Time Buyer

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


For the full set of tips on making yourself mortgage ready, download our Top Tips for First Time Buyers guide – 17 pages of accumulated knowledge from helping people get the mortgage they want.
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