There’s something thrilling about buying your first home, finally having a place that’s truly yours. But let’s be honest: the first-time buyer mortgage side of things can feel like learning a foreign language. Between deposit requirements, affordability checks, and interest rate options, it’s easy to feel out of your depth.
The good news? Once you understand the basics, the process becomes far less daunting. Here’s what every first-time buyer needs to know before they apply.
So, what makes you a first-time buyer?
It’s simpler than you might think. If you’ve never owned a residential property anywhere in the world, you’re a first-time buyer. This applies to joint applications too, if neither of you has owned property before, you both qualify.
Why does this matter? Because first-time buyer status can open doors to specific mortgage products, government schemes, and sometimes more favourable terms. On the flip side, lenders tend to scrutinise first-time applications more carefully, since you don’t have a track record of managing mortgage repayments.
The deposit: How much do you really need?
This is usually the biggest hurdle. Your deposit is the chunk of money you put down upfront, with the mortgage covering the rest. In Ireland, you’ll typically need at least 10% of the property’s value, though some lenders may require more.
Here’s the thing: a bigger deposit doesn’t just mean borrowing less. It can also unlock better interest rates, potentially saving you thousands over the life of the mortgage. That’s why so many first-time buyers spend years squirreling away every spare euro.
If you’re getting help from family, what’s known as a gifted deposit, be prepared for paperwork. Lenders will want proof of where the money came from and confirmation it’s a genuine gift, not a loan you’ll need to repay.
How much can you borrow?
Just because you want to borrow €300,000 doesn’t mean a lender will agree. Mortgage affordability isn’t just about your salary, it’s about your entire financial picture.
Lenders will look at your income (obviously), but they’ll also examine your outgoings: credit card payments, car loans, childcare costs, even your regular spending habits. They’re trying to answer one question: can you comfortably afford the monthly repayments, even if interest rates rise?
Most lenders use income multiples as a starting point, typically 3 to 3.5 times your annual salary. But the real assessment goes much deeper. If your finances are a mess of overdrafts and missed payments, you’ll struggle to borrow as much, even if your income is solid.
Your credit history matters more than you think
Your credit report is essentially your financial CV. It shows lenders how you’ve handled credit in the past and they’ll use it to predict how you’ll handle a mortgage.
Missed phone bills, maxed-out credit cards, or defaults can all raise red flags. Even something as simple as not being on the electoral register can count against you.
Before you apply, get a copy of your credit report (you can do this for free) and fix any errors. Start paying bills on time, reduce outstanding debts, and avoid applying for new credit. Give yourself at least six months to clean things up if possible.
Fixed or variable: Which mortgage type is right for you?
This is one of the biggest decisions you’ll make, and there’s no universal “right” answer.
Fixed-rate mortgages lock in your interest rate for a set period, usually two, three, or five years. Your repayments stay the same, which makes budgeting easier and protects you if rates rise. The downside? If rates fall, you won’t benefit.
Variable-rate mortgages move up and down with the market. You might pay less when rates drop, but you’ll pay more when they rise. It’s less predictable, which can be stressful if you’re on a tight budget.
If you value certainty and want to know exactly what you’ll pay each month, go fixed. If you can handle some uncertainty and want the flexibility to potentially benefit from rate drops, variable might work for you.
Don’t forget the “extras”
Here’s where a lot of first-time buyers get caught out: the mortgage is just one part of the cost.
You’ll also need to budget for:
- Solicitor’s fees (typically €1,500–€2,500)
- Valuation and survey costs
- Home insurance (a lender requirement)
- Stamp duty (depending on the property price)
- Moving costs
These can easily add another €5,000–€10,000 to your bill. If you haven’t factored them in, you might find yourself scrambling to cover the shortfall just when you need to complete the purchase.
Get your approval in principle first
Before you start viewing properties or making offers, get a mortgage approval in principle (also called agreement in principle). It’s not a guarantee, but it tells you roughly how much you can borrow.
More importantly, it shows estate agents and sellers you’re serious. In a competitive market, that can make the difference between having your offer accepted or being passed over for someone who’s ready to move.
What happens after your offer is accepted?
Once the seller accepts your offer, the real work begins. You’ll submit your full mortgage application, complete with payslips, bank statements, tax returns, and any other documents the lender requests.
They’ll also arrange a valuation to make sure the property is worth what you’re paying for it. This isn’t the same as a survey, it’s just the lender protecting their investment. If you want a detailed assessment of the property’s condition, you’ll need to commission your own survey.
This stage can take weeks, sometimes months. Stay on top of requests from your solicitor and lender. The faster you provide information, the quicker things move.
Why preparation is everything
Applying for a mortgage isn’t something you can wing. The buyers who have the smoothest experience are the ones who’ve done their homework: they’ve saved a decent deposit, cleaned up their credit, organised their paperwork, and understood what they can realistically afford.
Rushing in unprepared can lead to rejected applications, delays, or worse, buying a property you can’t comfortably afford.
The reality of first-time buying
Yes, buying your first home is a big deal. It’s probably the largest financial commitment you’ll ever make. But it’s not as scary as it seems once you break it down.
Understand what lenders are looking for, get your finances in order, and don’t be afraid to ask questions. Whether it’s a mortgage broker, financial advisor, or even a friend who’s been through it recently, good advice can save you time, money, and a lot of stress.
Take it one step at a time, and before you know it, you’ll be holding the keys to your first home.