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FIRST TIME BUYER MORTGAGES
Where do I start?

Acquiring your first home in today’s era is no easy feat, making it imperative as a first time buyer to understand the mortgage application process. Our team of experienced mortgage advisers can make the process hassle-free by providing leading advice and assisting you in finding the best deal tailored to your needs as a first time buyer.

To begin the process, it’s crucial to determine the amount of money you can borrow for your first mortgage. The Central Bank of Ireland has established lending rules that allow borrowers to take out a maximum of three and a half times their gross income. Certain lenders may make exceptions to these rules in specific circumstances.

Once you know how much you can borrow, calculate your personal resources and subtract any associated costs, such as solicitor fees and moving expenses. This should give you an estimate of the funds you have available to purchase your property. It’s important to note that you must have sufficient resources to ensure that the “loan to value” of your mortgage does not exceed 90%, which is the maximum percentage for first time buyers entering the property market. Additionally, purchase costs like furnishing and decorating your new home should also be factored in.

How can we help you?
As Ireland’s top retail mortgage brokerage, GMC Mortgages stays up-to-date with all the latest developments in the mortgage market and provides free advice to our clients. Our team of skilled mortgage brokers will work to find the best deal available for first time buyers To get in touch with us today, call 1890 462 462.
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The Mortgage Process
Step-by-Step Guide for First Time Buyers
First time buyers mortgage

How much can I borrow as a first time buyer?

Buying your first home can be a little intimidating, but GMC Mortgages can help make it as straightforward as possible. As a first-time buyer, the first thing you should do is find out how much you can borrow. Call one of our mortgage brokers at 1890 462 462 or apply online and based on your salary, deposit, and monthly loan commitments, we’ll give you an idea of how much you can borrow.

Start looking for your first home!

Once you have an idea of your borrowing capacity as a first time buyer, you can start looking for a property that interests you. After you’ve received an approval in principle, you’ll know the maximum price you can pay for your new home and can make an offer. Contact the seller’s estate agent, find out if anyone else is interested in the property, and decide how much you want to offer.

If your offer is accepted, it will be “subject to contract,” meaning you and the seller have agreed to proceed but are not yet legally bound. You may need to put down a deposit, which should be fully refundable if you decide not to proceed. At this point, you should ideally contact your solicitor and ask for a quote for dealing with your purchase.

Make a full mortgage application.

Next, you’ll need to make a full mortgage application for the property. To qualify for your first time buyers mortgage, you’ll need to provide supporting documentation (e.g., pay slips, bank statements) to back up what you’ve stated. The financial institution will typically send out a valuer to check the property’s worth, but you should consider having a full structural survey of the building done.

Once you’ve applied and all the relevant checks have been made, including confirmation that you can afford to repay the loan, your lender will send the loan offer. You’ll also need to apply for other products, such as mortgage protection insurance and buildings insurance at this stage.

Your solicitor will check the legal documents relating to the ownership and use of the property, as well as make local authority and other searches to identify any potential issues that may affect the property’s value.

Once your solicitor has completed all of the checks, you and your seller are ready to exchange contracts. This means signing identical copies of the contract for sale before the solicitors exchange them. You’ll pay your deposit through your solicitor, and both you and the seller will be legally bound to proceed with the transaction. If you pull out after exchanging contracts, the seller can keep your deposit.

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Mortgage Interest Rate Options for First Time Buyers

In Ireland, most financial institutions provide various interest rate options, broadly categorized into fixed and variable rates. Fixed rates, which are usually quoted for a period of 1 to 5 years, remain constant throughout the specified period regardless of any fluctuations in financial markets. After the fixed rate period expires, the mortgage usually reverts to the lender’s standard variable rate, unless you choose another option.

On the other hand, a variable rate mortgage is a loan with an interest rate that typically changes based on money market rates. The lender’s standard variable rate or base rate is often used to determine the interest rate, which can increase or decrease over time.

First time buyer mortgage
Types of Mortgages Available to First Time Buyers

Banks generally offer first time buyers a standard repayment mortgage. This is where you pay interest on the mortgage and repay capital over a period of time. It is usually between 20 to 30 years.

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What deposit do I need?

A deposit of 10% of the property value is usually required for first-time buyers. For example if you are looking to buy a property worth €300,000, you will need to pay a deposit of €30,000.

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Will my debts affect the amount I can get?

When offering a mortgage, banks generally look at the borrower’s gross income and will also take into account existing loans. If you have a reasonable amount of personal debt, for specific purposes such as car finance, then this may not cause a problem. If possible, you should seek to be debt-free before you apply for your first mortgage.

GMC Mortgage Brokers offering first time buyers mortgage options from 7 banks in Ireland
Tax Relief on Mortgages

Tax relief is available on owner-occupied residential mortgages. It is generally deducted from your monthly mortgage repayment. Once you drawdown your loan, you should inform the Revenue Commissioners. Your lender should soon afterwards take account of the tax relief. The amount of the relief depends on your own individual circumstances. See www.revenue.ie for further information.

first time buyers relaxing in new home
Renting Rooms

You can rent out rooms in your owner occupied property up to a certain annual amount without affecting your income tax or capital gains liability. Called “rent a room relief” and is a great way to subsidise your mortgage repayment without tax consequences. See www.revenue.ie for further information.

extra costs including decorating for new home
Extra Costs (e.g. Stamp Duty)

Examples of extra costs that you may need to budget for are as follows: stamp duty, solicitor’s fees, surveyor’s fee, decoration and furnishings, carpets and flooring, alarm installation. Examples of extra costs that may be payable throughout your ownership of your property include: property service charge, mortgage protection insurance, buildings and home contents insurance, utilities (gas, electricity, telephone).

Mortgages
Apply
Online

Take the hassle out of buying your first home by using a GMC mortgage broker. Not only will our team will thoroughly assess your details but also will help guide you through the loan application process, from initial assessment all the way through to mortgage completion. We work with all the major lenders and therefore offer the best rates on the market for  first time buyers. Why deal with one bank, when you can deal with all the banks instead? Click below to apply for a mortgage online instantly with GMC mortgage brokers.

Mortgage application apply online with GMC Mortgages Ireland
Apply for mortgage online
Mortgages
Apply
Online

Take the hassle out of buying your first home by using a GMC mortgage broker. Not only will our team will thoroughly assess your details but also will help guide you through the loan application process, from initial assessment all the way through to mortgage completion. We work with all the major lenders and therefore offer the best rates on the market for  a first time buyer. Why deal with one bank, when you can deal with all the banks instead? Click below to apply for a mortgage online instantly with GMC mortgage brokers.

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