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First Time Buyers Ultimate Guide Ireland 2022

First Time Buyers Ireland
First Time Buyers Ireland

With house building ramping up and new homes starting to come on stream, many are starting to dream of owning their first home once again.

By using a combination of the grants available to you, equity release from the family home and the right mortgage lender, that new home might be closer than you think.

Times are still tough for First Time Buyers due to rising prices and some of the tightest lending rules in Europe.

Don’t despair though, with the right approach First Time Buyers may still be able to get a foot on the property ladder.

By using the Help to Buy grant, plus a gift from your parents funded through equity release you can increase the size of your deposit and steal a march on other would be buyers.

In our First Time Buyer Ultimate Guide Ireland 2022, we’ll give you the full run down on everything you need to know if you are a first time buyer, plus some insider tips to help you get your dream home.

1. Who qualifies as a First Time Buyer? First Time Buyers Ireland 2022

To qualify as a First Time Buyer you can’t have had a mortgage before.

If you have ever taken out a mortgage under your name either in Ireland or overseas, you are no longer considered a First Time Buyer.

The good news though is you still count as a First Time Buyer if you previously inherited a house or bought outright. It’s only taking out a mortgage previously that disqualifies you from being a First Time Buyer.

Importantly if there are two people going on the mortgage, both must never had a mortgage before to qualify as a First Time Buyer.

2. How much can I borrow? First Time Buyers Ireland 2022?

The amount you can borrow is set by two things. First the Central Bank lending limits and secondly your mortgage lender’s credit policy.

Central Bank Lending Limits

The Irish Central Bank’s lending limits are some of the tightest in the world, so these are usually the biggest hurdle that needs to be overcome. [1]

The absolute maximum you can borrow under Central bank limits is 4.5 times your annual gross household income, however lenders are only allowed to go this high on 20% of mortgages. These are known as exceptions, 80% of mortgages must be under 3.5 times annual gross household income.

Typically lenders want any loans over 3.5 to go to what they see as the lowest risk customers. So these ‘exceptions’ go to people later in life who are the very highest earners and have lower living expenses than most First Time Buyers.

For the vast majority of First Time Buyers then, the maximum you can lend will be 3.5 times your annual gross household income. So this is how it usually works.

  • Kate earns €34,000 gross per annum, €24,000 basic and €10,000 last year in bonuses
  • Liam earns €30,000 gross per annum, €20,000 basic and €10,000 in commission last year

So their joint gross annual income is €64,000 per annum.

The Central Bank limit of 3.5 will allow them to borrow up to a maximum of €224,000.

Lender Credit Policy

On top of the Central Bank limits lenders apply a second set of rules to assess if you will be able to repay the mortgage.

These differ significantly from lender to lenders. By way of example some lenders discount bonus and commission payments completely and others bump up salary contributions if you are in certain professions with job security.

More generally the lender looks at your earning and spending history in the last 6 months to work out how much income will you have left over after you have covered your commitments.

The more money they think you will have left over the more they are likely to lend you.

This makes picking the lender who maximises your earnings and maximising how much you put by in the 6 months before applying for a mortgage really important.

It can even help you get hold of one of those precious mortgage exceptions.

Look for a mortgage broker who has access to all the lenders in the market as some lenders are only available via a broker.

3. What Deposit do I need for a First Time Buyer mortgage? Ireland 2022

The minimum amount of deposit you need to buy is also set by the Central Bank of Ireland.

The good news is that as a First Time Buyer you only need to put down 10% of the properties purchase price upfront. Second time buyers have to stump up a whopping 20% for the deposit.

That said it still makes sense to maximise your deposit if you can.

Ramping up the deposit reduces the mortgage size, which can knock thousands off the interest you will pay or may even help you afford a property that the Central Bank rules may have put out of reach.

With spiralling rents eating into your savings, how can you maximise your deposit?

4. What are the latest help schemes for First Time Buyers? First Time Buyers Ireland 2022

The Help to Buy scheme allows first time buyers to claim 10% of their property value to help them pay a deposit on newly built homes.

It’s a Government tax refund scheme and in order to claim, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home. 

In order to claim from this scheme, your home must be valued at €500,000 or less. 

The most you can claim is €30,000, so if your home is valued at more than €300,000, you still can only receive €30,000 max.

You may be able to bump up your deposit further with a gift from friends or relatives. The usual route for first time buyers is through their parents, commonly known as the ‘bank of mum and dad’.

It’s unlikely that your parents have fifty grand lying about the house, but they may have equity tied up in the family home that they can access to provide cash for a deposit via a process known as equity release. Equity release allows home owners who have paid down part of their mortgage to get a tax free cash lump some to fund a deposit for their family members or others.

By releasing equity on the family home parents can gifts their kids up to €330,000 tax free, this may be an attractive option for them if the kids are still taking up room on the family couch or wasting thousand of euro’s in rent.

5. Insider Tips for First Time Buyers Ireland 2022

  1. Work with a mortgage broker who will match you with a lender that maximises your mortgage
  2. Reduce your outgoings in the 6 months before applying for a mortgage to maximise your loan
  3. Save as much as you can yourself for a deposit
  4. Top up your deposit with the Help to Buy scheme
  5. Consider equity release as an option to further increase your deposit and purchasing power

By maximising your deposit and working with a broker with access to all potential lenders, first time buyers will make the most of their chances of securing their dream home.

Next Steps – First Time Buyers Ireland 2022

Are you a first time buyer wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge!

Trying to save money as a first time buyer? Check out our top ten saving tips in Ireland here!

Want to learn more about the first time buyers help to buy scheme here or equity release here.

If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.

Ulster Bank Closure Who Should I Switch to? Ireland 2022

ulsterbank
ulster bank closure

The impending Ulster Bank closure and the pull out of KBC this year from the Irish market is set to cause significant customer disruption.

There are over 1 million accounts and an estimated 500,000 customers with Ulster Bank and a further 300,000 with KBC. Dwarfing the scale of previous bank closures from Anglo, Danke Bank etc..

Closure notices for Ulster Bank customers are drop through customer’s doors by the end of March 2022 giving Ulster bank customers 6 months to switch to another bank, before your account is closed.

If you don’t switch by then, you will be simply issued a cheque with your remaining balance.

If you a have a mortgage with Ulster Bank this is set to be transferred to PTSB, but with PTSB’s rates some of the highest in the market it probably makes sense to look at switching that as well.

So what options are left for best current account, savings and mortgage?

Don’t panic there are some better and less expensive options out there than Ulster Bank and switching may not be as difficult as you think.

Switching Current Account – Ulster Bank Closure Ireland 2022

Best Digital Only Bank

If you don’t need to lodge cash or cheques then the Digital only banks N26 or Revolut are great options.

They have no monthly fees, the lowest once off fees and the best apps on the market. With features from kids accounts to trading in bit coin already built in and a really slick user experience.

They are also both covered under the EU Deposit Guarantees up to €100,000 the same as the non Digital banks.

One thing to watch out for though is some employers on old payroll systems may struggle with the EU Iban. This will only be a minority of employers however as under EU law everyone should have upgraded their payroll systems a number of years ago to be SEPA compliant.

Revolut already has 1.7 million customers in Ireland and recently became a full bank, so that’s why they are our pick of the bunch.

However, if you still need to lodge cash or cheques you have two options. Get someone with a traditional bank account to do it to their account and then send you the money or get yourself a traditional account from one of the banks below.

Traditional Banks

If digital only isn’t an option for you there are now 5 other more traditional banks you can choose from for your current account. The interest on all these accounts is pretty much irrelevant as it is so low, so what you are looking for is low fees.

If you don’t use your ATM regularly An Post or your local Credit union may be a good options. Both of these come in at €60 a year in fees. However, An Post charge 60c per per withdrawal and your Credit Union will charge around around the same so this can mount up quickly if you head to the cash machine once a week.

In that case we would recommend PTSB’s current account. It’s slightly more pricey at €72 a month, but withdrawals are free.

Switching Saving Accounts – Ulster Bank Closure Ireland 2022

Deposit interest rates are at record lows of around 0.5% with inflation heading for 8% or more, you should probably look at talking to a financial advisor if you have €10K or more to invest.

Investments can yield 4% per annum or more depending on the risk level and can help take the edge of inflation.

We review the best financial advisors for each region of the country here.

If you still want the security of a guaranteed rate the best rates are to be found from banks outside of Ireland. You can access rates up to 1.15% from banks across Europe on raisin.ie or consider a state saving account with around 0.6% interest rates.

If you have less than €10,000 squirrelled away then you may be better off leaving it or transferring it to your current account. The Digital Banks offer the ability for you to separate from your daily account with ‘vaults’ or ‘money jar’ features on their apps.

Switching Mortgages – Ulster Bank Closure Ireland 2022

Ulster Bank have sold their existing mortgages to PTSB and KBC to Bank of Ireland. This means if you have a mortgage with either you and your mortgage will transfer.

PTSB and Bank of Ireland have the highest mortgage rates in the market so many Ulster and KBC customers are considering switching to a different lender. If you are in your fixed rate period then PTSB and Bank of Ireland will have to honour those rates, but after that they could choose to hike rates increasing your monthly repayments.

Ulster’s non tracker rates range from 3.5% to 3.9% which are already some of the highest in the market.

So a typical Ulster mortgage customer on their 3.5% variable rate, with €150,000 remaining over 15 years would save €106 a month by switching to the best deal on the market, that’s more than €19,000 over their remaining term and would avoid the risk of a future rate hike.

Avant Money are offering €1,500 upfront for anyone switching their mortgage from Ulster Bank or KBC. The offer is available until the 31st of March and targets customers thinking of switching from Ulster & KBC as both exit the Irish market this year.

Switching costs are usually around €1,500 for solicitor and valuation fees combined, so this offer will make switching from Ulster and KBC effectively free.

At moneysherpa for example we offer an all in legal package including all outlays for €1,200 including VAT, while estate agent valuation fees are typically around €200. So €1,400 all in.

The repayment calculation is based on switching to Avant Money’s 5 Year fixed rate and using the switching offer to cover their upfront costs.

If you are a tracker however, sit tight. Any new owner will have to honour your existing terms.

You can see how much higher PTSB and Bank of Ireland rates are in the table below.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

Switching Next Steps – Ulster Bank Closure Ireland 2022

If you have an account with Ulster Bank you will have to switch it in the next month, so act now to beat the rush.

When it comes to mortgages Ulster didn’t have great rates to start with (3.5%-3.9%) and have now been bought out by one of the banks with the highest mortgage rates in the State, PTSB, so now is a good time to switch to save now and to avoid higher rates down the line.

You can calculate your mortgage repayment switching savings here.

This applies for anyone with with a variable rate around 50% of Ulster Bank mortgage holders. If you are still in your fixed rate period then sit tight until you are 3 months from the end then speak to a broker. If you are on a tracker don’t worry, the new owner will have to honour your existing terms.

You can book a free appointment to check out if you would save here.

Equity Release Ireland 2022 – How to Release Cash from your Home

Mortgage Top Up

Looking to free up the cash locked up in your home? Equity release can free up cash tied up in your home for holidays, gifting to the kids, home improvements, a new car and more. It can also be a good way to solve financial issues like paying off other debts, freeing up cash for a divorce settlement or to help your kids get on the property ladder.

Equity Release Ireland 2022

Equity Release is only open to people over 60 in Ireland, in this article we will give you the lowdown on whether Equity Release is right for you and what options are available. If you are under 60 your can still free up cash from your home with a mortgage top up.

Equity Release comes in two flavours,

  • Lifetime Loan – You get a tax free loan which you pay off plus interest when you move out and sell.
  • Home Reversion – You get a tax free lump sum for selling a portion of your home, but are able to continue living there.

Both types of equity release can be a good solution if you need cash, but want to stay in your home and are becoming increasingly popular. You can talk to an an advisor from the leading provider in Ireland Spry Finance here.

The option that’s best for you depends on your particular circumstances so read on to find our if equity release is right for you and which type would be the right option.

  1. What Is It and How Does It Work? – Equity Release Ireland 2022
  2. Equity Release Alternatives – Equity Release Ireland 2022
  3. Equity Release Pros and Cons – Equity Release Ireland 2022
  4. Equity Release Top Tips – Equity Release Ireland 2022
  5. In a Nutshell – Equity Release Ireland 2022

What Is It and How does It Work? – Equity Release Ireland 2022

Equity is the cash you would get if you were to sell your home right now. This is the difference between the value of your house and what you still owe on it.

Equity release products are a way of getting at the value locked away in your home without having to sell up and move out. In return for letting you get your hands on the cash right now though, you will have to give more of your homes value away to the financial providers when you eventually move out.

Equity Release is becoming increasingly popular, in the UK over half a million people have released equity from their home. As well as paying off their debts many have used the cash freed up to help their kids get a foothold on the property ladder, giving over £5 Billion to their children through equity release.

According to a recent study in the UK these are the main things that people did with the cash they freed up from Equity Release.

  • Repay other debts (51%)
  • Take a holiday (20%)
  • Improve lifestyle overall (19%)
  • Give to kids (including as a deposit on a new home) (16%)
  • Make home and garden improvements (15%)

There are two providers of Equity Release products currently in Ireland, Spry Finance and Home Plus, both of whom have been in Ireland for decades and are regulated by the Central Bank of Ireland.

Life Time Loan

Spry Finance offer what is know as a Lifetime Loan. This is the most popular form of equity release where you borrow some of your home’s value at a fixed interest rate.

You can choose to either leave the repayments to when you move out and sell your home or pay off some of the interest monthly. If you don’t make any monthly payments the interest that builds up will eat into what is left over from the sale of your property for you or your family when you do move out though.

The Spry Equity Release product guarantees however that the money you will have to repay at the point of sale will never be bigger than the value of your home, so you won’t pass on any debt to your family.

Home Reversion

Home Plus offer the other type of equity release, known as Home Reversion. With Home Reversion the provider pays you a tax free lump sum for a portion of your home at a discount to the market price.

So when the property is sold you (or your family/estate) and the provider split the proceeds depending on the share they have purchased. So if house prices have risen since your sold a share of your property you will benefit less.

Equity Release Alternatives – Equity Release Ireland 2022

Before we go any further the question you need to ask yourself is

Is Equity Release Right for Me?

There is a cost to Equity Release either in the interest rate you pay with a lifetime loan, typically around 4.5%, or in the discounted price that is offered for a share of your property with a home reversion.

That’s why you should consider your alternatives carefully before making any commitments.

Down Sizing

Although current mortgage interest payments are at record lows, interest payments really mount up over longer periods. An option that doesn’t involve paying more in interest or discounting your home value is to sell up and move to a smaller property.

You will probably incur around €2,000 in solicitor and valuer fees in the process, but this is much less than you would pay in interest or discount, so financially speaking is a much better option than equity release.

If you’re settled in an area emotionally this can be a big wrench, so you will have to balance the cost to your quality of life with the financial cost of equity release to come to a final decision on what’s best.

Equity Release Pros and Cons – Equity Release Ireland 2022

So here’s some of the key things to consider when thinking about Equity Release

Pros

  • You can access cash now and continue to live in your home
  • You can’t lose your home while you live there, it’s insured and in good condition
  • You won’t leave any debt to your kids due to the “No Negative Equity” guarantee
  • You are free to do whatever you like with the cash you free up

Cons

  • Cost through interest (lifetime loan) or discounted sale price (home reversion)
  • Costs to arrange a solicitor and valuer for your home, around €2,000 in total
  • Potential impact on means tested social security benefits
  • Lack of flexibility (you may not be able to downsize later or pay off as early as you’d like)

Equity Release Top Tips – Equity Release Ireland 2022

1) Release your equity in phases

If you are thinking about a lifetime loan you don’t need to take it all out at once. By taking it out over time you can reduce the overall amount of interest that you will pay.

There is no point in having cash from your lifetime loan sat in the bank not being used and earning no interest. So only take out what you need to reduce the interest you pay on the lifetime loan overall.

While we are on the subject never release equity to fund speculative investments, focus on taking out the minimum you need for your own use.

2) Talk to those who might be effected

If your thinking of Equity Release it may make sense for you to talk to members of your family who may be effected.

If you are going to take cash out of the value of your home now, that means there will be less cash from the sale of your home if you die or have to move into long term care.

This can cause issues with family members who may see the family home as part of their ‘inheritance’.

There is obviously no legal reason you have to discuss your decision with them, but it can save some heartache when your decision to take equity release comes to light later on down the track.

3) Get advice

Equity Release is a big decision and you should get advice and guidance through the process from a qualified financial advisor and a solicitor.

If you use a qualified financial advisor who has an appointment with Spry Finance or Home Plus from the Central bank of Ireland they will probably be free to use, as the providers will cover their costs. You can get in touch with a qualified financial advisor from Spry who can talk you through how to get a lifetime loan here.

You will have to pay for a solicitor, with fees ranging from €1,200 to €2,500 depending on who you use. We recommend Colm O’Cochlain & Co who operate nationwide as they specialise in equity release arrangements and operate nationwide. Please quote moneysherpa if you want to secure the best rate.

In a Nutshell – Equity Release Ireland 2022

Equity release is growing in popularity if you’re over 60 as a way to free up much needed cash from your home and still continue to live there. If you’re under 60 the equivalent is a top up mortgage.

You can use it for yourself or to free up cash for your kids, often to help them get on the housing ladder. It is relatively costly compared to downsizing so you need to weigh the pros and cons of both.

If you do want to go ahead with equity release you should get qualified financial advice.

The most common way to release equity is through a lifetime loan, the only provider of these in Ireland right now is Spry Finance who are regulated by the Central Bank of Ireland.

What’s next – Equity Release Ireland 2022

You can get in touch with a qualified financial advisor from Spry who can talk you through how to get a lifetime loan here or you can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

We have loads more in our mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

You can get more detail on lifetime loans, home reversion and equity release from the CCPC [1].

Should I Get a Mortgage Top Up? 3 Tips to Free Up Cash from Your Home – Ireland 2022

Mortgage Top Up
Mortgage Top Up

Looking to free up the cash locked up in your home? A mortgage top up may be what you are looking for, allowing you to release some of the equity tied up in your home.

No matter what you want the money for, our tips will give you the inside track on whether a mortgage top up is right for you and the best way to go about it.

By switching mortgage to a better rate you can often borrow more and still pay less in repayments per month. That’s why the the number of people taking out a mortgage top up, also sometimes known as releasing equity, is on the rise.

A mortgage top up is simply re-mortgaging your home for more than your current outstanding mortgage to allow you to access the amount you have ‘topped up’ by to spend now.

Use our mortgage top up calculator to see what your new monthly repayment will be. Select ‘new mortgage’ to see if your repayments on the topped up amount are less than you are paying today.

If you’re over 60 there are also some other equity release options know as a home reversion equity release or a lifetime loan equity release, which will also allow you to stay put and release some cash.

For most of us though the mortgage top up is the way to go. To find out more about how you can get a mortgage top up and whether it would suit you read on.

  1. Should I Get A Mortgage Top Up? – Mortgage top up Ireland 2022
  2. 3 Top Up Tips – Mortgage top up Ireland 2022
  3. In a Nut Shell – Mortgage top up Ireland 2022
  4. What Happens Next – Mortgage top up Ireland 2022

Should I Get A Mortgage Top Up? – Mortgage top up Pro’s & Con’s Ireland 2022

Before we go any further the first question you need to ask yourself is

Should I Borrow More At All?

Even though the current historically low mortgage rates mean you may be able to borrow more than you have today and still pay less in monthly repayments, it doesn’t mean you should.

If you can wait and save up instead, you could simply switch your current mortgage loan to the new lower rates reducing your mortgage repayments and giving you the option to reduce the term of your mortgage.

If that’s not an option for you, read on.

Why Are You Borrowing More?

Remember by topping up your mortgage you are securing the loan against your home and probably borrowing across a long period which means making higher interest payments overall.

So if you are thinking of borrowing more long term investments for the future, like home improvements, make more financial sense.

If you are borrowing to fund current spending or consolidating short term debts tread carefully. Although current mortgage interest payments are at record lows, interest payments really mount up over longer periods.

Use our mortgage top up calculator to see what your new monthly repayment will be. Select new mortgage and if your repayments on the topped up amount are still less than you are paying today then you at least have some good options to work with.

3 Top Up Tips – Mortgage Top Up Ireland 2022

There are 3 things you need to consider when you are getting a top up mortgage.

  • Principal – the total amount you need to borrow
  • Purpose – what is the top up part of the loan going to be spent on
  • Process – how do you maximise your approval odds

These 3 p’s are your passport to releasing the maximum amount of cash from your home.

1) Mortgage Top Up Tips – Principle

The principle is the total amount you need to borrow.

Principle = outstanding mortgage + top up amount

In most cases under Central Bank limits the principle can not be bigger than 20% of the value of your home or 3.5 times your annual gross salary.

2) Mortgage Top Up Tips – Purpose

Different lenders have very different policies about what the top up part of your principle can be used for.

That’s why you should use a mortgage broker to match you with the right lender. Some lenders only allow mortgage top ups for home improvement, whilst others pretty much allow anything depending on the size of the top up you are looking for.

Assuming you engage a broker that works with all the lenders on the market here’s how the options break down by top up mortgage amount.

  • Below €20,000, includes all types of discretionary spend such as holidays, weddings, cars with no receipts required.
  • €20,000 – €70,000 , things are still pretty flexible. Includes debt consolidation, gifting to children, education, medical expenses. The only real change is you will need to produce the receipts/quotes.
  • €70,000 up, at this point it’s home improvement only. All lenders offer home improvement top ups, but only some will let you lend up to 80% of the future rather than current value of your home.

Not from €70,000 up it’s likely you are conducting major structural works so you will need quotes in advance and planning permission.

3) Mortgage Top Up Tips – Process

The top up mortgage process works in pretty much the same way as any other mortgage.

Mortgage Customer Journey Final
  1. Get a mortgage broker. They can help you navigate the process and match you with the right lender.
  2. Get mortgage ready. As part of the application process the lenders will also run the rule over your ability to repay the loan. The 6 months before the application is critical as lenders will look at your bank statements in this period to assess your ability to repay the loan as part of the application.
  3. Get a solicitor and valuer. Again a good broker can help you with this and some lenders will cover the costs.
  4. Get your mortgage protection increased. If your increasing your mortgage you will need to increase your protection, this should be less than €5 more per month and you might even save by switching provider.

Once you receive your loan offer and meet any remaining conditions you will be able to drawdown the top up amount into your bank account and get spending.

In a Nutshell – Mortgage top up Ireland 2022

Mortgage top ups are on the rise with historically low rates giving the option for some of releasing cash now without having to increase their repayments.

That said, you should think about if you really need to borrow and why before you take the plunge.

For example for those looking to get their kids on the housing ladder or improve their home, a mortgage top up can make a lot of sense.

Due to the wide range of lender policies though you should arrange your top up through a broker who has access to all the lenders in the market.

What’s next – Mortgage top up Ireland 2022

Make sure all your documentation lines up and if needed clean house on your finances for the 6 months before you apply.

You should then engage with a broker who can guide you to the best lender and help take the pain out of the paperwork. You can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

We have loads more on help to buy grants, the best rates and mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.47% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

You can get more detail on the documents required for a mortgage and mortgage top ups from the CCPC [1].

Buy or Rent? Increasing Gap Between Buyers & Renters

Buy or Rent

Based on the most recent Daft DAFT Rental Price Report moneysherpa.ie analysed how rents now compare to the equivalent monthly mortgage payments on the same properties region by region. 

moneysherpa.ie found that in over three quarters of the country monthly rents tot up to over €100,000 more than the equivalent mortgage repayments over 30 years. With West County Dublin showing the highest difference at €297,000 more in rent paid over 30 years versus the monthly repayments with a 30 year fixed rate mortgage.

DJ6cEN

moneysherpa.ie analysis of Monthly Rent v Mortgage Payments

The region with the lowest gap between monthly rents and mortgage repayments was South County Dublin, however even there renting was over €37,000 more expensive than buying.

The Irish Central Bank imposed lending limit of 3.5 times salary is one of the strictest lending caps in Europe, with would-be buyers being forced to continue renting as they are unable to get a mortgage due to the bank’s rules. 

The combination of ‘trapped’ renters and a shortage of new rental supply has led to the spiraling rent inflation seen in the recent DAFT.ie report, with rents up 10.3% year on year on average across the country.

The moneysherpa.ie analysis takes the DAFT.ie rent data and compares it to the equivalent monthly mortgage repayment. Based on the 30 year fixed rate mortgage available from Avant Money for a home of the same value assuming a loan to value of 90%. 

Commenting on the analysis Mark Coan of moneysherpa.ie said 

“This analysis raises some significant questions about the current Central Bank lending rules, which are in effect creating a chasm between those who can afford property and those that can not.”

“Those that can meet the current lending rules, will pay over €100,000 less to live in their home for 30 years and create an asset that they can pass onto the next generation. “

“Those that can’t, even though they are paying a monthly rent that would be more than their mortgage repayments, are €100,000 worse off and will accumulate no assets after paying 30 years of rent.

 “With fixed mortgage rates now available for 30 years there is less risk of current renters defaulting on their mortgage than on their rapidly rising rents. The Central Bank lending rules have to change and change soon to reflect that new reality.” 

“The idea that relaxing the rules will inflate housing costs further is misguided, housing cost inflation is due to lack of supply and is already here in the form of rising rents. Relaxing the rules will simply allow more people to own their own homes and help become financially secure”

moneysherpa.ie has also developed a free online calculator that can be used to calculate how your own monthly rent would compare to a mortgage repayment.

Average regional rents, house prices and monthly mortgage repayments over 30 years. 

RegionHouse PriceMonthly RentMonthly MortgageMonthly DifferenceTotal 30 Year Difference
South County Dublin€625,801€2,258€2,154€104€37,380
Monaghan€208,932€925€719€206€74,089
Donegal€177,740€826€612€214€77,102
Leitrim€158,246€779€545€234€84,340
Kilkenny€262,027€1,162€902€260€93,613
Mayo€185,864€915€640€275€99,075
Tipperary€208,980€1,001€719€282€101,389
Cavan€183,454€934€631€303€108,902
Galway€241,335€1,138€831€307€110,615
Wicklow€383,508€1,630€1,320€310€111,552
Longford€168,327€897€579€318€114,327
Roscommon€171,621€912€591€321€115,645
Clare€219,745€1,087€756€331€119,009
Limerick€215,172€1,085€741€344€123,956
West Meath€244,409€1,192€841€351€126,245
Offaly€225,152€1,126€775€351€126,349
Carlow€228,590€1,146€787€359€129,288
Waterford€270,703€1,300€932€368€132,541
Sligo€172,192€961€593€368€132,578
Laois€218,219€1,146€751€395€142,140
Wexford€256,295€1,300€882€418€150,396
Cork€255,576€1,300€880€420€151,287
Kildare€307,638€1,544€1,059€485€174,611
Meath€301,992€1,525€1,040€485€174,768
Kerry€229,574€1,300€790€510€183,509
Louth€249,525€1,396€859€537€193,345
South City Dublin€446,415€2,145€1,537€608€218,997
North County Dublin€352,134€1,897€1,212€685€246,551
North City Dublin€370,992€2,006€1,277€729€262,422
City Centre Dublin€354,432€1,996€1,220€776€279,343
West County Dublin€329,858€1,962€1,135€827€297,556

Data based on Q4 Daft.ie House Price and Rent report and latest mortgage rates from moneysherpa.ie.

moneysherpa.ie is an independent personal finance websitend regulated by the Central Bank of Ireland and was founded by Mark Coan who previously held senior positions with the Irish Independent and Permanent TSB.

3 Real Life Mortgage Switcher Examples Saving Over €10,000 Each

Switching or Remortgaging
Mortgage Switcher

You might have heard that the average mortgage switcher in Ireland saves over €20,000, but that sounds too good to be true, right?

I mean if that was true everybody would be doing it surely and you’d be straight on google to get switched yourself, so there must be a catch?

Spoiler alert: There’s no catch.

That’s why record numbers are switching right now with more joining in everyday.

So we thought in this article we would share some real life examples of 3 of our recent mortgage switchers. That way you can see for yourself what people are actually saving and what’s actually involved in being a mortgage switcher.

Read on to see what mortgage switchers just like you have saved in the last few months and how much you could save by switching.

If you want to see how different providers compare on your mortgage right now you can click here.

  1. Couple Switching from PTSB to ICS – Mortgage Switcher Example
  2. Couple Switching from AIB to Avant Money – Mortgage Switcher Example
  3. Single Switcher from PTSB to Avant Money – Mortgage Switcher Example
  4. What you should do next – Mortgage Switcher Example

Noel & Naeiri, Mortgage Switch from PTSB to ICS – Mortgage Switcher Example

Noel & Naeiri Gavin have a home in Navan and switched their mortgage using online broker moneysherpa.ie.  Noel works in engineering and Naeiri is a stay at home mum.

Due to a combination of the strong property market in Navan and a number of home improvements they made to the house, the value of their home increased to over €500,000.

This reduced their loan to value to less than 60%, which is the size of the mortgage compared to the value of the property, allowing them to access better mortgage rates. 

They originally took out their mortgage with Permanent TSB which has one of the highest rates in the market. 

The fixed rate they were on was expiring in a few months so they contacted Moneysherpa for guidance on their next step. 

If they did not take action the mortgage would revert to the general variable rate from PTSB, which was 3.7%.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

moneysherpa advised them that they could save even more by switching provider to ICS mortgages, who’s fixed rate packages at 2.29% APRC recognise and reward the reduced risk from a low Loan to Value ratio when your property is worth more than your loan value. 

Noel & Naeiri were able to reduce their mortgage payments and take 4 years off their mortgage saving over €38,000 in the process by completing the switch.

Murray and Jennifer, switched from AIB to Avant Money – Mortgage Switcher Example

Murray and Jennifer living in Drogheda switched their mortgage from AIB to Avant Money with moneysherpa. They saved over €10,000 with Avant Money’s 7 year Fixed rate and were able to use the savings they made to pay off their mortgage earlier.

Avant Money have some of the lowest rates on the market, their 7 year fixed is one of our favourites starting from 1.95% and locking in your savings for 7 years.

Short/Medium60% LTV70% LTV80% LTV90% LTV
Fixed TermRateAPRCRateAPRCRateAPRCRateAPRC
3 Years1.95%2.03%2.05%2.06%2.15%2.23%2.2%2.25%
4 Years1.95%2.02%2.05%2.23%2.15%2.23%2.2%2.23%
5 Years1.95%2.02%2.05%2.06%2.15%2.22%2.2%2.25%
7 Years1.95%2.01%2.05%2.07%2.15%2.21%2.25%2.28%
10 Years2.10%2.12%2.20%2.20%2.30%2.32%2.40%2.40%
AVANT MONEY RATES (APRC calculated on €100K loan, 30 years, valuation of €185, security release €40)

ICS Mortgages pip Avant at the post for the shorter fixed term products due to their more flexible credit policy. However if you have a sparkling credit history the Avant Money 3 year and 4 year fixed at 2.39% & 2.43% respectively are so close it makes no difference.

Sandra, Switching from PTSB to Avant Money -Mortgage Switcher Example

Sandra Chubb from Ballyfermot switched her €110,000 mortgage from PTSB to Avant Money in January.

She saved over €10,000 by lowering her interest rate from 3.4% to 2.01% APRC with Avant Money’s 7 year fixed product. 


By reducing her interest rate by over 40% she was able to afford to reduce her mortgage term from 21 years to just 12 saving thousands in interest payments. 


Sandra switched with online broker moneysherpa.ie 

“They were really friendly, gave me independent advice and helped me pull together the paperwork. Most people don’t realise they are in a position to save so much by switching” 

That’s why we would recommend using a broker to help you switch to a fixed rate product with a low on-going rate from either Avant Money or ICS.

The lenders with the lowest rates can usually only be accessed by brokers, many brokers are free to use and they can take the pain out of the paperwork.

What’s Next – Mortgage Switcher Examples

It makes more sense than ever to compare mortgage rates Ireland 2021 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

A big thanks to Noel, Naeiri, Murray, Jennifer and Sandra for letting us share their stories.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year with a 0.5% discount across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.47% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]

New €1,500 offer for Ulster KBC Switching to Avant Money

Avant Money Mortgage Ireland 2021
ulster kbc switching

Ulster KBC switching. Avant Money are offering €1,500 upfront for anyone switching their mortgage from Ulster Bank or KBC. The offer is available until the 31st of March and targets customers thinking of switching from Ulster & KBC as both exit the Irish market this year.

Ulster Bank have sold their existing mortgages to PTSB and KBC to Bank of Ireland. This means if you have a mortgage with either you and your mortgage will transfer.

Higher Rates on the Way for Ulster and KBC customers? – Ulster KBC Switching

PTSB and Bank of Ireland have the highest mortgage rates in the market so many Ulster and KBC customers are considering switching to a different lender. If you are in your fixed rate period then PTSB and Bank of Ireland will have to honour those rates, but after that they could choose to hike rates increasing your monthly repayments.

You can see how much higher PTSB and Bank of Ireland rates are in the table below.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

Free Switching Costs – Ulster KBC Switching

Switching costs are usually around €1,500 for solicitor and valuation fees combined, so this offer will make switching from Ulster and KBC effectively free.

At moneysherpa for example we offer an all in legal package including all outlays for €1,200 including VAT, while estate agent valuation fees are typically around €200. So €1,400 all in.

Example Switching Saving – Ulster KBC Switching

So a typical KBC mortgage customer on their 4.25% variable rate, with €172,000 remaining over 16 years would save €187 a month and €35,983 over their remaining term. The repayment calculation is based on switching to Avant Money’s 5 Year fixed rate and using the switching offer to cover their upfront costs.

3 Year Fixed
APRC Comparison
up to
50% LTV
up to
60% LTV
up to
70% LTV
up to
80% LTV
up to
90% LTV
Avant Money2.03%2.03%2.06%2.23%2.25%
ICS Mortgages2.47%2.47%2.48%2.71%2.74%
Finance Ireland2.66%2.80%2.82%2.82%3.07%
Haven Mortgages3.0%3.0%3.0%3.0%3.0%
AIB2.72%2.91%2.91%3.09%3.09%
KBC3.03%3.03%3.08%3.08%3.28%
EBS3.5%3.5%3.5%3.5%3.5%
Permanent TSB3.57%3.57%3.67%3.67%3.71%
Bank of Ireland3.7%3.7%3.7%4.1%4.1%

If you are with KBC or Ulster and not on a tracker, the new Avant Money €1,500 switching offer means you will probably save over €20,000 without having to pay any upfront fees.

Next Steps – Ulster KBC Switching

Ulster and KBC have been bought out by the banks with the highest mortgage rates in the State, PTSB and Bank of Ireland, so now is a good time to switch to avoid higher rates down the line.

You can book a free appointment to check out if you would save here.

How Long Does Mortgage Approval Take & How Do I Get Pre-Approval Now – Ireland 2022

htb 4 1 edited
How long does mortgage approval take ireland

Buying a home is probably the biggest financial decision you will ever make and one of life’s most stressful times. So you are probably super keen to know how long does mortgage approval take and can you get pre-approval or approval in principle like yesterday.

Knowing how mortgage approval and pre-approval works in Ireland can help you secure your dream home and reduce your stress levels.

That’s because how you apply makes a big difference to how much you can borrow and how long the whole process will take.

With our Ultimate Guide to how to mortgage approval Ireland 2022, you could borrow up to 4.5 times your joint income and get the whole thing done and dusted in less than 3 months.

Here’s our top 3 how to get mortgage approval Ireland 2022 tips

  • Maximise your savings in the 6 months before you apply to maximise what you can borrow
  • Understand how best to navigate the mortgage approval process to minimise delay
  • Use a broker with a wide selection of lenders to maximise your mortgage approval odds

Use our tool to get Pre-Approved now below.

If you want to find out more before diving in read on to see understand how you can get mortgage approval and maximise how much you could borrow while minimising the hassle factor.

  1. Work Out How Much You Can Borrow – How long does mortgage approval take Ireland 2022
  2. Maximise My Approval Chances – How long does mortgage approval take Ireland 2022
  3. Get Some Help – How long does mortgage approval take Ireland 2022
  4. What Happens Next – How long does mortgage approval take Ireland 2022

Work Out How Much You Can Borrow – How long does mortgage approval take Ireland 2022

The first step is to work out how much mortgage you can get, you might not need to borrow up to your limit, but it will help you to understand your maximum budget in case you find yourself in a bidding war for your new gaff.

To help avoid a credit bubble like the one that went pop back in 2008 the Central Bank sets some absolute maximum limits that no lender can go beyond.

If you are buying your home to live in, the limit is the lower of either

  • Income – 4.5 times your joint gross income per year
  • Deposit – 10 times your deposit

Wait a minute before you rush off and bid on that dream home, the Central Bank only allows 20% of all borrowers in any year borrow up to these limits.

The lenders are therefore very picky about who gets these ‘exceptions’ only putting forward people with squeaky clean credit histories and very high levels of disposable income.

If you fall outside the top 20% of applications then the limits are

  • Income – 3.5 times your joint gross income per year
  • Deposit – 10 times your deposit for first time buyers and 5 time for others

As part of the application process the lenders will also run the rule over your ability to repay the loan. Based on this they may lend you less than the limits above or indeed nothing at all.

For most people the 3.5 times salary limit is the one that applies and gives the best idea of your budget. However if you need an exception to make up the numbers or want to maximise your odds of approval you can use our instant Approval In Principle (AIP) tool below.

Our tool runs the numbers based on your income and expenditure and instantly spits out your odds of mortgage approval across the lenders. Even better we will then automatically email you with a provisional Approval In Principle that you can use to view property and start your house hunting!

Maximise My Approval Chances – How long does mortgage approval take Ireland 2022

Even if you have enough disposable income for mortgage approval on paper based on our provisional AIP calculator we then have to back this up with evidence.

Lenders try to work out, based on information on your application for what’s know as a full Approval In Principle, the likelihood of you not paying back the mortgage in full. If a loan goes south that’s a big hole in their profits, so the more risk they think you are the less they will lend.

This means you can maximise the mortgage you can get by knowing what they are looking for and getting your finances in shape in advance of mortgage approval.

This is why the question how long does mortgage approval take can have a different answer depending on your circumstances. A switcher can be done in 6 weeks as they have solid proof they can make the repayments, while someone who doesn’t have evidence of spare cash left over might have to wait up to 6 months before even applying.

The 6 months before the application is critical as lenders will look at your bank statements in this period to assess your ability to repay the loan as part of the application.

So what are the key things you can do to maximise your approval chances?

  1. Maximise your Income – Many lenders include 50% of overtime, bonuses and commission, so maximising these can be a big help.
  2. Clear your outstanding loans – These eat into your ability to repay and are usually higher interest than your mortgage will be.
  3. Secure your employment – Make sure you have finished any probation period or have a long term contract.
  4. Don’t splurge – Minimise your outgoings, so you show consistent evidence of saving some money at the end of every month.
  5. Delete your Paddy Power app – Any major spend on online gambling is a big no no and don’t try to be smart by moving it to your Revolut account the lenders are wise to that and will ask for statements.

Keep your nose clean for 6 months and you will demonstrate to the lenders you can be trusted and will maximise your mortgage potential.

Get Some Help – How long does mortgage approval take Ireland 2022

So you have 6 months of sparkling clean bank statements and you are sick of living on your mates couch, what do you do next?

You have two choices to kick start the application process.

  1. Apply to one of the lenders directly
  2. Apply to a lender through a broker

Which lender you apply to can make a huge difference to your approval chances and what you will pay over the course of the mortgage. That’s why we recommend using a broker for your application.

A broker can look at your situation and match you with the best lender to maximise your approval chances and minimise your repayments. Brokers are often free to use and are impartial as they get paid the same commission 1% of the mortgage value by all the lenders.

Not all brokers are created equal though. Check out if your broker has:

  • Access to the best lenders for rate Avant Money, ICS, Haven and Finance Ireland
  • No fees or low fees for your type of application
  • An online application process to make the paperwork easier
  • A best rate guarantee

What Happens Next – How long does mortgage approval take Ireland 2022

Once you have chosen your broker you can get the application underway.

Mortgage Customer Journey Final

1. Apply Online

First up you will need to confirm your personal and financial details to get your instant Approval In Principle. You can jump right in below to start the process now.

Once you have your provisional approval you can upload supporting documents like your bank statements and proof of identity onto the brokers application platform.

These documents are needed to help prove you can repay the mortgage and also prove you are who you say you are.

2. Choose Mortgage & Lender

Your broker then reviews your details plus documents and recommends the best lender and mortgage product. As each lenders approval policy is different they will match you with the best one for you.

For example, ICS lend more to public servants and is good for short term fixed rates. Avant Money on the other hand don’t do exceptions above the 3.5 salary, but have the best long term fixed rates.

They will also run you through the other options and why they think they aren’t a fit for you at this point.

3. Get Full Approval In Principle (AIP)

Your broker will then use the documents and details you submitted to apply for approval with the rate and lender you picked. It can take 3 days to 3 weeks to get approval depending on the lender you choose (your broker will fill you in on this).

You can now go bid on a property knowing you have an approval in your back pocket!

4. Get Final Loan Offer

Once your offer has been accepted your broker will have it valued by an independent estate agent. This is so the lender can have confidence that the asset that they are securing the lending on (your new house), is worth what you say it is.

Once the lender has all the details on the property from the broker they issue the final offer, which includes any conditions before you can access or ‘drawdown’ the loan. These are usually things like you must have a life protection policy and home insurance in place, which your broker will help you arrange.

5. Complete House Purchase

Ta Da! The moment you have been waiting for, once the conditions are met the loan is released and you get the keys to your new home!

In a Nutshell – How long does mortgage approval take Ireland 2022

How you apply for a mortgage makes a big difference to how much you can lend, how long it takes and your approval chances.

The first thing to do is to work out how much you can borrow and get your provisional AIP, we have a handy mortgage calculator for that here.

Then you need to make sure all your documentation lines up and if needed clean house on your finances for the 6 months before you apply.

You should then engage with a broker who can guide you to the best lender and help take the pain out of the paperwork. You can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

Finally, make sure you know the process and where you are in it, so you can reduce your stress and maximise your chances of getting your dream home.

We have loads more on help to buy grants, the best rates and mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.47% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

You can get more detail on the documents required from the CCPC [1].

The €1.5 Billion Mortgage Switch Ireland – Why Switching is the New Black

switch mortgage ireland
Mortgage Switch Ireland 2021

The big mortgage switch Ireland.

More people have completed a mortgage switch this autumn than for a decade. Over 1,616 in Q3 2021, the highest since 2009.

The mortgage switch is back because interest rates have now hit historic lows.

The average saving for a mortgage switch at the end of 2019 was a whopping €21,626. With over 150,000 Irish mortgage holders set to save a staggering €1.5 Billion by switching.

With rates falling and prices rising since 2019, those switching savings have only gotten bigger since then.

Mortgage switching is set to explode in the coming months quadrupling to the rates seen in other countries across Europe and back at the height of the boom.

Read on to get the inside scoop on the big mortgage switch and see exactly what it might mean for you and your mortgage.

  1. Why Mortgage Switching is the New Black – Mortgage Switch Ireland 2022
  2. How Much can You Save by Switching Mortgage? – Mortgage Switch Ireland 2022
  3. Why isn’t Everyone Switching? – Mortgage Switch Ireland 2022
  4. In a Nutshell – Mortgage Switch Ireland 2022

Why Mortgage Switching is the New Black – Mortgage Switch Ireland 2022

According to the latest figures from the Banking and Payments Federation [1] more people have completed a mortgage switch this autumn, at 1,616, than since 2009 just after the banking crash.

The chart below shows 1% of the 674,176 mortgage holders in Ireland are now switching every year, that’s over 6,700 and it’s only heading one direction.

Annual Switching v Number of Mortgage Holders Ireland
Switching rates since 2014 (Source: BPFI Report Q3 2021)

The mortgage switch is so fashionable right now due to mortgage rates hitting record lows.

  • 2015 Existing Rates 4.3% v New Rates 3.9%
  • 2020 Existing Rates 3.48% v New Rates 2.68%

So back in 2015 a mortgage switch would cut your mortgage rate by 0.40%, but by the end of 2019 the difference had doubled to 0.80%. That makes new rates over 20% cheaper than existing rates, a record saving.

You can see this increase in ‘spread’ in the chart below. The Standard Variable Rate for Existing Loans in green has hardly dropped at all, as the banks have tried to keep their existing customer rates high.

The 1 to 3 year fixed new lending rate in red however has plummeted as new lenders, Avant Money, ICS and Finance Ireland, have entered the market.

Screen Capture
Mortgage Rates (Source: Central Bank of Ireland Economic Letter No.12 2020)

These rates are the lowest since trackers were on the go back in 2008.

This widening rate gap alone is enough to drive increased switching, but increasing house prices have further sweetened the deal. As home values rise the loan to value ratio gets smaller.

Lenders see low loan to value ratios as less risk, allowing customers to access even lower rates.

The mortgage switch double whammy, the widening rate gap and lower loan to values, is creating a switching surge.

How Much can you Save by Switching Mortgage? – Mortgage Switch Ireland 2022

So this begs the question, should I switch and how much will I save if I do?

There are over 670,000 residential mortgage holders in Ireland right now, 36% of these are on a tracker mortgage tied to the European Central Bank rate. If you’re on a tracker you almost certainly would be better off staying put.

That leaves the 64% of mortgage holders not on a tracker, which equals over 430,000, 27% of all Irish households.

Almost all of these will save something by switching, even those on a fixed rate, but this is where it gets really juicy.

According to the Central Bank almost 150,000 will save more than €10,000 by switching, a combined saving of over €1.5 Billion. You can see exactly how the 150,000 breaks down below.

Central Bank SwitchingFixedVariableTrackerTotal
All Mortgage Holders171,105259,276243,795674,176
Save something29,082153,1900182,272
Save more than €10,00020,83789,657110,484
Save more than €30,0008,07628,49936,575
Central Bank of Ireland Economic Letter 12 2020

We ran the numbers for an average mortgage switch ourselves, just to be sure.

  • Average mortgage switch = €235,401
  • Average term = 22 years
  • Average reduction in rate = 1%

= An Average Saving of €21,626

Yes you read that right, the average mortgage switch saving was €21,626 according to the Central Bank’s own figures.

Why isn’t Everybody Switching? – Mortgage Switch Ireland 2021

Hang on a minute, shouldn’t mortgage switching be much higher if there is €1.5 Billion to be saved?

It most certainly should, switching in Ireland lags almost all developed countries world wide with only 1% switching every year.

Italy has over four times that rate of switchers at 4.1% and the Aussies see over 8% of their variable rates switched per year. Across the pond in the UK switching rates are also more than double that here.

As the savings between existing and new rates are much bigger than that seen in other countries, what exactly is going on?

Part of the reason is due to tracker mortgages. The super generous terms offered by the Irish banks back in the boom, has led to over a third of all mortgage holders staying put and holding on to what they have for dear life.

The rest of the gap is usually put down to the idea that it’s not in the Irish psychology to switch, we are a nation loyal to a fault. Let me bust that particular myth right here, the data shows the Irish love a great deal as much as anyone.

Remember our first chart showing how we were at record switching levels? Let’s zoom out a little on the data and see the trends if we go back in time a little further.

Annual Switching v Number of Mortgage Holders Ireland 1
Switching Rates since 2003 (Source: BPFI)

That’s right, before the crash mortgage switching in Ireland was running at 4% per year, right up there with other nations.

Due to negative equity and uncompetitive rates in the eight years after the crash Ireland simply got out of the habit of switching. It’s just not been a thing for almost a decade, so has fallen off the radar.

I’ve listed the top 4 reasons for not switching below, based on the latest Central Bank data.

Screen Capture 1
Reasons for not switching (Source: Central Bank)

So what are the answers to each reason?

  1. I do not know what the legal costs of switching would be. Answer: The solicitor cost and a valuation should cost less than €1,500 all in.
  2. I might switch if there was a long term guarantee of interest rate advantage. Answer: With Avant Money for example you can fix your rate for up to 30 yrs.
  3. I do not know if I would save money. Answer: You almost certainly will if you’re not on a tracker.
  4. Switching would be too complex. Answer: Use a broker for both advice and to take the pain out of the paperwork they’re free to use in many cases.

With the barriers falling and savings increasing it’s only a matter of time until we are back up at the 4% mark and mortgage switching is the new big thing.

In a Nutshell – Mortgage Switch Ireland 2022

After falling out of fashion the mortgage switch is about to make a comeback.

  • Rates are at record lows and savings at record highs.
  • The average saving is €21,626 massively out weighing the costs of switching
  • You can fix rate anywhere up to 30 years to ‘lock in’ your savings
  • If you use a broker you can switch for free in less than 3 months

The clock is ticking though, with inflation rising to over 5% variable rates will probably start to rise over the next 6 months. By switching to a new lender with a fixed rate of 5-15 years you can make savings of over €10,000 while also protecting your home from increased repayments.

What’s Next – Mortgage Switch Ireland 2022

It makes more sense than ever to compare mortgage rates Ireland 2022 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year offering 0.5% lower than other lenders across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.47% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Switcher Mortgage Ultimate Guide – Cash Back Hack, 3 Tips to Maximise Your Savings

switcher mortgage
switcher mortgage

We all know switching your mortgage is the biggest thing you can do to save loads of cash, but what if I told you there was a way to make these savings not just once, but four times over.

Sounds too good to be true right? It isn’t if you are prepared to put the effort in. By using the right strategy you can make the absolute most of all the juicy switching offers currently available.

There are nine different mortgage lenders in Ireland right now, with over 250 different mortgages on offer. In this rundown we will recommend the best switcher mortgage short term, the best switcher mortgage for the long term and the best switcher mortgage for multiple switchers.

The right switcher mortgage for you depends on whether you are looking to switch and stick or if you want to switch multiple times.

Based on our review of all 250 switcher mortgages in the market we recommend the following options.

  • Best switcher mortgage short term switching – ICS 3 year Fixed Rate
  • Best switcher mortgage long term switching – Avant Money 15 year Fixed Rate
  • Best switcher mortgage multiple switcher – PTSB Variable Rate

Read on to see which approach is the best fit for you and how much you could save.

If you want to see how different providers compare on your mortgage you can click here.

  1. Multiple Switcher, Cashback Hack – Switcher Mortgage
  2. Long Term Switcher – Switcher Mortgage
  3. Short Term Switcher – Switcher Mortgage
  4. What you should do, the verdict – Switcher Mortgage

Multiple Switch, Cash Back Hack – Switcher Mortgage

Irish Mortgage providers use either introductory fixed rates or once off cashback offers to tempt new customers to switch.

Cashback offers from EBS, PTSB and Bank of Ireland give you 2% of the total mortgage amount back in cash when you take out the mortgage. So on the average switch of €240,000 that’s €4,800 in cash at drawdown as shown below.

Compare
Cashback
Cashback MinCashback Max Cashback conditions
Permanent TSB0%2%2% not available to 4 year fixed term.
EBS2%3%2% on drawdown 1% after 5 years
Bank of Ireland2%3%2% on drawdown 1% after 5 years

You should tread carefully though as the rates from these providers are some of the highest in the market. Surprise surprise, as you can see from the table below the highest follow on and variable rates are with the three providers with the cash back offers.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.00%2.00%2.00%2.20%2.20%
ICS Mortgages2.45%2.45%2.45%2.70%2.70%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

If you are prepared to switch multiple times though you can get your hands on the cash back offers without paying the higher on-going rates. One of the few times you can really have you cake and then get to eat it afterward.

So if you take out a variable mortgage with PTSB you can take up the cashback offer, then switch to Bank of Ireland take out another variable rate cashback offer, then EBS for your final variable rate cashback offer.

On the average switcher mortgage of €240,000 that’s

  • €4,800 Cash Back (PTSB)
  • €4,800 Cash Back (BoI)
  • €4,800 Cash Back (EBS)
  • Total Cash = €14,400

Even better when you have picked up your cash from EBS you can then switch to a fixed rate deal through a broker with Avant Money or ICS to get on a low interest rate. This last step is really important as it can save you as much as the multiple switch hack.

Check out our advice on the best longer term low interest rate options below.

Best Long Term Switcher Mortgage – Switcher Mortgage

This image has an empty alt attribute; its file name is recommended-1024x1024.jpg
ProviderAPRCProductLTVApproval rate
Avant Money2.29%15yr fixed<60%Medium

The Avant Money 15 year fixed rate product has the lowest introductory rate of 1.95% in the market for the first fifteen years, with a market leading APRC over the lifetime of the mortgage of 2.29%.

If you know you staying put and want to lock out future interest rate rises this may be the mortgage for you.

The leading score on rate, whilst not dropping many points on the basis of flexibility, makes the Avant Money 15 year fixed product the best mortgage rate choice overall. 

Best fixed short term mortgage rate – Switcher Mortgage

ProviderAPRCProductLTVApproval rate
ICS Mortgages2.38%3yr fixed<60%High
Avant Money2.39%4yr fixed<60%Medium
Avant Money 2.43%3yr fixed<60%Medium

If you want to save on legacy rates, but want to keep your options open then there are still some good options out there.

The low fixed rate period is shorter so the overall cost of the mortgage is higher, but the mortgage rate across the term is still around 2.5% APRC.

ICS Mortgages pip Avant at the post for the shorter fixed term products due to their more flexible credit policy. However if you have a sparkling credit history the Avant Money 3 year and 4 year fixed at 2.39% & 2.43% respectively are so close it makes no difference.

What You Should Do, the Verdict – Switcher Mortgage

So should you make multiple switches?

Taking the cashback offers and switching multiple times is perfectly legal. As long as you choose a variable rate rather than a fixed rate you aren’t tied in to a minimum period before switching.

You will have to pay solicitors fees though for each switch, these come in at around €1,000 a switch, although many solicitors will knock a bit off for multiple switches if you haggle.

You also need to be prepared to put in the hard yards, although switching is a lot easier than taking out a new mortgage, switching 4 times over isn’t to be taken lightly.

Finally, mortgages are a major financial commitment and can be pretty complex. While your working through your multiple switch master plan, the market might change, the providers conditions might change and your own circumstances might change.

For most people then making the switch once to a lower on-going interest rate is the best policy. You still save thousands without all the hassle and risk of the multi switch strategy.

That’s why we don’t recommend the multi switch strategy. The reality is that although on paper the multi switch strategy makes sense, for most of us life gets in the way and it’s way too much hassle.

That’s why we would recommend using a broker to help you switch to a fixed rate product with a low on-going rate from either Avant Money or ICS. The lenders with the lowest rates can usually only be accessed by brokers, many brokers are free to use and they can take the pain out of the paperwork. The payback might not be as immediate as with the multi switch strategy, but for much less work you will still save thousands and get the best value.

If you are prepared to put in the work and take on the risks involved in a multi switch strategy however, don’t forget to talk to a broker about that final step to switch to a long term lower rate, otherwise you will lose almost all you gained by collecting those cashbacks in the first place.

What’s Next – Switcher Mortgage

It makes more sense than ever to compare mortgage rates Ireland 2021 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year with a 0.5% discount across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

Avant Logo
  • Rates from 2.02% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 2.47% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

Overall, the Avant Money 15 year fixed rate came clearly out on top as the overall best mortgage rate. With their market leading APRC of 2.29%, which saves an amazing €20,000+ for switchers in most cases. Avant Money’s 7 and 4 year products are also a great choice for those looking for shorter or medium fixed terms.

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]

Market Insider – Investing Ireland August 2021

Investing Ireland August 2021
Investing in Ireland 2021

Fiat 50 motors on! – Investing Ireland August 2021

Last month marked the 50th anniversary of the “Nixon Shock” of August, 1971, whereby the US dollar’s unpegging from its Gold Standard straitjacket served to liberate the fiat currency printing presses of the global financial system in a manner that has fuelled a debt-financed asset-inflation odyssey for three generations of investors.

Equity markets duly celebrated this landmark anniversary with their 7th consecutive month of gains, that Worry Wall of Delta variant, peak growth (for economies and earnings), inflation risk, Fed taper talk and now Afghanistan still being climbed in resolute fashion by a TINA investment community amply lubricated by the excess liquidity drip-feed of current central bank policy settings.

The MSCI World advanced by a further 2.5% in August, its recovery from the March, 2020 lows now exceeding 100% (dividends included).

Value indices once again lagged Growth on both sides of the Atlantic, although the gap narrowed from previous months, with financials extending their recovery back towards cycle peaks.

The S&P500 secured it’s 54th record close ytd above 4,500 by month’s-end, whilst the STOXX 600 enjoyed 10 straight gains, its longest run of consecutive daily advances since 2006. Equity markets were not without their mid-month swoon, however, this a recurring (and perhaps options-expiry related) feature of the past several months.

Some acute intra-month volatility across bond and commodity complexes also; US real yields rebounded sharply from fresh record lows (-1.22% in 10yr TIPS) as taper talk resurfaced, Gold endured a $115 flash crash to sub-$1700 early-August before recovering above its $1800 pivot point, and Brent crude tested both ends of a $65-75 range-trade as COVID uncertainties abounded.

By contrast, currency markets were an oasis of calm, with Eur/USD still engaged in a sideways meander above its perceived 1.1600 floor.

Equities – Investing Ireland August 2021

Another month of gains for global stock markets, their 7th straight advance, both S&P500 and STOXX 600 indices now reporting total returns of 20%+ on a ytd basis.

A stellar Q2 corporate earnings season remained the primary impulse, although the Delta variant did impact on sectoral performance, the more defensive Nasdaq (+4.1%) once again showing the way on Wall Street.

Emerging markets (+2.6%) enjoyed their best performance since January, courtesy of renewed liquidity support from the People’s Bank of China, while the US Senate’s passage of a $550bn bipartisan infrastructure package was a timely reminder that overall policy support for economies and markets is not yet sated, the Fed’s taper talk notwithstanding. 

Bonds Investing Ireland August 2021

On the surface, bond markets were becalmed in August, with US Treasuries reporting their smallest move (-0.2%) in either direction for more than a year. However, yields did gyrate materially intra-month, with investors torn between the impact of a globally spreading Delta variant and that potential policy pivot by the major central banks.

The key 10yr Treasury yield touched a low of 1.13% early in the month, before an avalanche of Fed taper talk forced an abrupt about-turn to a 1.37% high late in the period.

The sell-off in Treasuries was compounded by renewed weakness in European government bonds, where the region’s highest headline inflation rate (+3.0%) since November, 2011 raised the spectre of a PEPP (asset purchase) dial-back by the ECB. 

Currencies Investing Ireland August 2021

A late-Summer lull descended over the foreign exchange markets last month, with relatively modest changes on the major crosses, although the US Dollar Index did manage to eke out a further 0.5% gain, while Sterling lost some ground on both USD and Euro fronts.

The dominant Eur/USD cross had an interesting month, recovering steadily from 1.1660 lows mid-August to a 1.1810 close. This exchange rate is now tracking relative short-term interest rate movements quite closely, and it has been the firming up of Euribor quotes in the midst of strengthening Euroland data-flow and some quasi-hawkish soundings from certain ECB Governors that is now supporting a revival of investor interest in the single currency.

Commodities Investing Ireland August 2021

Although the CRB index flatlined in August following its recent steady gains, the energy components suffered their first decline since March, with both WTI (-7.4%) and Brent crude (-4.4%) selling off on concerns over slowing demand in China and the Delta variant more generally.

Industrial metals prices were also softer for the same reasons, whilst Gold prices endured a rollercoaster month, rebounding from a $115 flash crash in early-August to close broadly unchanged, that $1800 valuation level still exhibiting a magnetic attraction, be it  from above and below.

Asset Market Outlook Investing Ireland August 2021

  • Equity markets now entering their seasonally most vulnerable period, with the build-up of more defensive investor positioning signalling correction concerns
  • A mild pullback is certainly overdue although, remarkably, stocks are already cheapening on standard valuation metrics (both absolute and relative to bonds), whilst the degree of overall policy support (monetary and fiscal) remains acute
  • Tentative indications of slowly declining Delta spread following two months of gains harbinger of a “Reopening Trade” revival to favour rotation back to cyclical stocks 
  • Corrective rally in global bond markets has seemingly now run its course, the prospective dial-back of Fed and ECB asset purchases ensuring more adverse supply/demand conditions and a return to higher yields
  • USD rally finally running out of steam on fading relative interest-rate support, with Eur/USD eyeing a key 1.1950 retest, and scope for speculative longs to rebuild after a 3-mth flush-out
  • Gold prices still not straying too far away from their $1800 pivot, with ETF holdings now stabilised and Asian jewellery demand in recovery mode; needs to vault $1830 for breakout

Asset Allocation Investing Ireland August 2021 Outlook

                                  Equities      Bonds       Credit      Forex/Euro

US                                         +1              -2              -1                 -1

Euroland                              +2              -2              -1                 N/A

UK                                         +2              -2              -1                  0

Asia                                       +1              -1              -1                 -1

Code +3/-3 very attractive/ very unattractive

Financial Market Performance Data Investing Ireland August 2021 Outlook [1]

AugJulJunQ3YTD
Equity
MSCI WORLD2.51.81.54.418.3
MSCI EM2.6-6.70.2-4.32.9
S&P 5003.12.42.35.521.6
EUROSTOXX 6002.22.11.54.320.8
FTSE 1002.10.10.42.213.2
ISEQ5.61.9-0.77.620.1
Gov Bonds
US TREASURIES-0.21.40.81.2-1.5
EUR SOVEREIGNS-0.51.80.51.3-1.7
IRISH GILTS-0.61.90.41.3-2.4
Corp Bonds
US HIGH GRADE-0.21.21.61.10.1
EUR HIGH GRADE0.61.20.4-0.80.3
Commodities
CRB INDEX0.12.23.72.330.1
OIL – WTI-7.40.710.8-6.841.2
COPPER-2.74.3-8.11.523.9
GOLD0.12.5-7.22.6-4.5
FX
EUR/USD-0.50.1-3.1-0.4-3.3
EUR/STG0.6-0.4-0.40.2-4.1
Source: DB Research

Next steps

You can read our more investing in Ireland analysis here.

You can check out our other guides on Investing in Ireland here.

You can find out where to get individual investing in Ireland and financial advice in your area here.

Help to buy scheme Ireland 2022- What it is and how you could claim €30,000

Help to Buy scheme Ireland 2021
Help to Buy scheme Ireland 2022

The Help to Buy Scheme Ireland 2022 allows first time buyers in Ireland to claim 10% of the value of their property, which can be anywhere up to €30,000. 

In this article, I will be going into detail about how the Help to Buy scheme works, what you have to do to qualify, how much can be available to you, how to get your taxes refunded, how to get up to date on your taxes so you can qualify, and finally how to apply.

1.How does the Help to Buy scheme Ireland 2022 work?

2. How do I know if I qualify for the Help to Buy scheme Ireland 2022?

3. How much is available to me from the Help to Buy scheme Ireland 2022?

4.How will I receive my tax refund from the Help to Buy scheme 2022?

5.How can I get up-to-date on my taxes for the Help to Buy scheme Ireland 2022?

6.How can I apply to the Help to Buy scheme Ireland 2022?

7. A summary of The Help to Buy scheme Ireland 2022. 

1. How does the Help to Buy scheme Ireland 2022 work?

Untitled design 10 1 edited

The Help to Buy scheme Ireland 2022 is a Government tax refund scheme.

It allows first time buyers to claim 10% of their property value to help them pay deposits on newly built homes.

This incentive offered by the Irish Government lasts until the 31st of December, 2022.

In order to claim from the Help to Buy scheme Ireland 2022, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home. 

This refers to Income Tax and DIRT.  You cannot claim from USC or PRSI. 

Don’t worry too much if you feel that you haven’t paid enough tax to qualify, as in actual fact most people in Ireland likely have paid 10% of their property tax within 4 years and can therefore apply to have their tax refunded for their new home under the Help to Buy scheme. 

2. How do I know if I qualify for the Help to Buy scheme Ireland 2022?

htb 5 edited 1

Even if all your taxes are up to date, there are still some more conditions that you need to take into consideration before applying to this scheme.

In order to qualify, you must-

  • Be a first time buyer in Ireland and outside of Ireland.
  • Be moving in with an applicant who is also a first time buyer if more than one person will be purchasing the home, ie) if one applicant is not a first time buyer then you cannot qualify for this scheme. 
  • Be moving into a newly built or self built home.
  • Be using the property as your principal private residence for 5 years.
  • Be moving into a home that isn’t a conversion or restoration, however a conversion of a non-domestic home into a domestic home can qualify. 
  • Be moving into a home worth less than €500,000.
  • Have a mortgage with a loan to value of 70%. For example, if you are purchasing a home worth €200,000, your mortgage must be €175,000.
  • Not pay for home in cash. 
  • Not be an investor or landlord.
  • Not be using property for investment purposes. 
  • Have a solicitor or contractor registered with the Revenue Commission.

While it may seem that there are many conditions to this scheme, remember that this incentive is to help first time buyers get on the property ladder. 

Therefore if you are a first time buyer and have been tax compliant in the 4 years before moving into your new property, you will most likely be able to qualify for this scheme. 

3. How much is available to me from the Help to Buy scheme Ireland 2022?

htb 1 1 edited

Under the Help to Buy scheme Ireland 2022, first time buyers can claim, 

  • 10% of the purchase price of their new build, for example a home worth €200,000 can claim €20,000.
  • The amount of Income Tax and DIRT paid in the previous 4 years before moving.

Or for self-builds, 

  • 10% completion value of their self-build home. 

In order to claim from this scheme, your home must be valued at €500,000 or less. 

The most you can claim from this scheme is €30,000, meaning that even if your home is valued at more than €300,000, you still can only receive €30,000 max.

Value of propertyRates Total claim received
€300,00010%€30,000
€400,00010%€30,000- cannot receive more than €30,000.

4.How will I receive my tax refund from the Help to Buy scheme 2022?

htb 2 1 edited

So if you qualify for this scheme, your tax refund will be paid to you depending on your property. 

If you buy a new build after 1 January 2017 (4 years ago), the refund is paid directly to the builder.

If you self-build the property after 1 January 2017, the refund is paid to a bank account you hold with your loan provider.

This money can be used to help first-time buyers cover the costs of their deposits.

5. How do I get my taxes up to date for the Help to Buy scheme Ireland 2022?

htb 3 1 edited

In order to claim from this scheme, you must be fully tax compliant and all your taxes must be up to date. 

However if your taxes are not up to date, you must complete a Form 12 if you are a PAYE earner or a Form 11 if you are self-employed.

You must fill out these tax forms in the 4 year period before you move into your new home and pay any outstanding taxes. 

6. How can I apply to the Help to Buy scheme Ireland 2022?

htb 4 1 edited

If you think you qualify for the help to buy scheme Ireland, then you should go to Revenues MyAccount service, where you will be told how much tax refund is available to you as well as apply. 

7. In a Nutshell – Help to Buy Scheme Ireland 2022

Untitled design 11 edited

In short, the Help to buy scheme 2022 is a great incentive for new first time buyers who are looking to find their way into today’s housing market.

If you are looking to buy a new home as a first time buyer then this scheme is designed to help you.

That is why we at moneysherpa believe you should check to see if you’re eligible for this scheme and apply as soon as you can before it ends on the 31st of December, 2022.

Next Steps – Help to Buy Scheme Ireland 2022

Wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge!

Trying to save money as a first time buyer? Check out our top ten saving tips in Ireland here!

Want to see how much you could potentially save? Use our savings potential calculator here! Or you can check out our handy switching mortgage guide here.

If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.

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