How to save for a mortgage in Ireland

Saving for your first mortgage can feel like a tough process to start, but with the right approach, your dream home may be closer than you think. To get a mortgage in Ireland, you will need a minimum of 10% of the house value as a deposit amount. We’ve put together some tips for saving your deposit, beginning your journey to home ownership.

1. Understand how much you need to save for your deposit

   Before you start, find out exactly how much you’ll need.

   • First-time buyers generally require 10% of the purchase price.
   • Don’t forget to budget for additional costs like stamp duty (1% for most homes under €1 million), solicitor’s fees, and valuation reports.
   • Having a target amount in mind will make your savings goal more tangible and motivating. Consider the location and type of home you want. This will help you set a more accurate target.

2. Put together a budget

   When you’re looking to save money for a house deposit, the first step should be understanding your household budget. A detailed budget is a fantastic way to get an understanding of the money coming in and where it is being spent. This, in turn, will help identify areas where you can cut back and plan how much you can save towards a mortgage each month.

3. Set a practical goal

   It’s important to be honest and plan within your means. By setting a clear budget, you can determine how much you are able to save without putting unnecessary pressure on your everyday spending. Don’t forget to leave room for little extras such as birthday gifts, social events, or the occasional car repair. A flexible budget that includes treats and a small safety net lets you stay prepared without feeling like you are missing out.

4. Set up a dedicated savings account

   Since most of the money you save will likely remain untouched for a long period while you gradually build up your initial house deposit, it might be a good idea to keep these funds in a dedicated savings or deposit account. This allows your money to earn interest over time while also making you less likely to access this money for everyday expenses.

5. Check out government support

   Certain financial support offered by the government may be able to help you with finally becoming the owner of your own home. Exploring the initiatives available to you is always worth considering.

6. Boost your savings with small lifestyle changes

   It’s not always about big sacrifices, small changes can really add up:

   • Bring lunch to work instead of buying it.
   • Cancel any subscriptions you don’t use.
   • Be more conscious of cost when booking holidays.

   Diverting these savings into your home deposit fund can keep you on track while still allowing room to have fun.

Let Avant Money help you prepare

Our expert mortgage team can help you understand every step of the mortgage process and all the documents you need for a mortgage application. You can also use our Mortgage Calculator to help you manage your budget and understand how much you can borrow. Visit Avant Money First Time Buyer Mortgages for further information on the mortgage process for first time buyers.

For more information visit Avant Money mortgages.

The above content of this blog is intended to provide general information only and does not constitute financial or professional advice from Avant Money. Readers should always seek independent professional advice and not solely rely on the information within the contents of this blog.

Lending criteria and terms and conditions apply. Applications from residents of ROI over the age of 18 only, and subject to repayment capacity, financial status and property valuation. We require property and life insurance.

Bankinter S.A., trading as Avant Money, is authorised by the Banco de España in Spain and is regulated by the Central Bank of Ireland for consumer protection rules.