Central Bank rules, Help to Buy, the First Home Scheme, and everything else you need to know before you start viewing.
Buying your first home in Ireland is one of the most significant financial decisions you'll make. The process is more structured than many expect — with Central Bank lending rules, government schemes, and legal requirements to navigate. This guide walks you through everything from saving your deposit to getting the keys.
The Central Bank of Ireland sets limits on how much you can borrow. As a first-time buyer, you can borrow up to 4 times your gross annual income (since the 2023 rules change), and you'll need a deposit of at least 10% of the purchase price.
Loan-to-Income (LTI): up to 4x gross income for first-time buyers. Loan-to-Value (LTV): up to 90% — meaning you need at least 10% deposit. A small number of exemptions exist, but most buyers will fall under these rules.
Two main schemes exist to help first-time buyers bridge the gap between savings and purchase price:
The Help to Buy calculation is based on your income tax paid over the last four years. Check it on Revenue's myAccount before you start house hunting — it affects how much deposit you effectively have.
Budget for legal fees (€1,500–€3,000), a structural survey (€300–€600), valuation (€150–€300, often required by lender), Stamp Duty (1% of purchase price on residential), and moving costs. Total non-deposit costs are typically €4,000–€8,000.
Just because a lender will give you 4x income doesn't mean you should take it. Model your monthly repayment at a rate 2% higher than today's, to stress-test your ability to repay if rates rise.
Guidance only: This guide is for educational purposes and does not constitute regulated financial advice. MoneyCents is not authorised by the Central Bank of Ireland to provide regulated financial advice. Always seek independent professional advice before making significant financial decisions. Full disclaimer →