First time buyer

FTB Guide

• Step 1: Find out how much you can borrow
  Use our mortgage calculator to estimate how much you can borrow based on your income, expenses, and saved deposit. This will help you understand your price range and prepare for regular repayments.
  
• Step 2: Talk to our mortgage specialists
  They can help you understand your mortgage options. Visit your local branch, call us on 0818 365 345 (9am to 5pm, Monday to Friday), or request a callback.
  
• Step 3: Save for your mortgage deposit
  As a first-time buyer, you can generally borrow up to 4 times your gross annual income (or combined income for joint applicants) and up to 90% of the property’s value. This means you’ll need to save up to 10% of the purchase price as a deposit.
  
  Remember: There are other costs to keep in mind like stamp duty, legal fees, home insurance, and mortgage protection – so you’ll need to save for those costs too. Our MortgageSaver account is designed to help you save your deposit and gives you €2,000 bonus interest (less DIRT) when you draw down your Bank of Ireland mortgage.
  
• Step 4: Start your application
  When you’ve saved your deposit, it’s time to fill in your mortgage application online, in a branch, or over the phone. You do not need to have a property in mind at this stage.
  
• Step 5: Provide requested documents
  Alongside your mortgage application, you’ll need documents like:
  
  – Proof of identification and address – your current passport or driver’s licence and a recent utility bill
  – Proof of income – your last two payslips and a salary certificate if you’re a PAYE employee or your most recent 2 years’ audited accounts if you’re self-employed
  – Records of your finances – your last 6 months’ current account statements and 6 months’ savings account statements demonstrating regular saving (if your accounts are not with Bank of Ireland)
  – Gift letter – if you’re getting financial help from a parent or family member to buy your first home, you’ll need to fill in a standard form (provided by us) that states the gift does not need to be repaid
  – Additional documents (if relevant) – things like Help to Buy (HTB) Scheme approval, separation/divorce agreement, evidence of inheritance, and statements for recently closed loans
  
• Step 6: Get approval in principle (AIP)
  If your application is successful, we’ll send you a formal ‘Approval in principle’ letter. Getting AIP shows sellers you’re a serious buyer and provides clarity on your budget.
  
  Remember: AIP is not a loan offer, so you cannot rely on it to enter into a contract to purchase a property. AIP for house-hunters generally lasts for up to 12 months. If it expires, you’ll need to apply for AIP again.
  
• Step 7: Find a home and complete your application
  When you find a suitable property, make an offer. If your offer is accepted, contact us to finalise your mortgage application. At that stage, we’ll send you a formal ‘Mortgage Loan Offer’ to buy your new property. It will include details of any final requirements you may need to meet before you can draw down the money to buy your new home.
  
  Remember: You’ll need to have the property valued by a professional valuer that we approve of. We will send you a list of valuers at this stage. We also recommend that you get a property survey carried out for your own peace of mind as this can identify potential issues that you might not otherwise see. In some cases, we may insist that you get one, particularly if the house you’re buying is older.
  
• Step 8: Appoint a solicitor
  If you do not already have a solicitor, now is the time to appoint one to help ensure everything is done legally and correctly during the mortgage process. Your solicitor will review contracts, manage the exchange of contracts to make the purchase legally binding, work with us to draw down funds, calculate and pay stamp duty, and register you as the new owner.
  
• Step 9: Take out home insurance and mortgage protection
  Before you can draw down the funds to buy your new home, you must take out a home insurance policy and a mortgage protection policy. We will check both are in place before finalising the process.
  
  Remember: You can choose a home insurance policy and mortgage protection policy from any provider.
  
• Step 10: Draw down your funds and get your keys
  If all the requirements are met, your solicitor will complete the purchase with the seller’s solicitor and arrange to transfer the property title to you. Now it’s time to pat yourself on the back and celebrate!
  

Remember: You can make sure you have all the documents you need to apply for a mortgage by viewing our document checklist and use our first-time buyers cost guide to see what expenses to expect along the way.

• What is a first-time buyer?
  A first-time buyer is someone who has never before (either on their own or with others) had a mortgage in Ireland or abroad. It also includes someone releasing equity from a family home they inherited or bought outright (whether with cash or a gift) and have never had a mortgage on it before, or who has a first-time buyer mortgage and now wants to release equity.

   

  You may also qualify as a first-time borrower if you meet the Central Bank of Ireland’s criteria as a “fresh start” borrower. You will find more information on this in the FAQ entitled “What is a fresh start borrower?”
  
  Please note: If you’re making a joint application for a first-time buyer mortgage, both applicants must be first-time buyers.
  

• Will the bank take my rental payment into account when considering my affordability?
  Yes. Any monthly rental payments you have made demonstrate your ability to support monthly mortgage repayments.
  
  Tip: Arrange to pay your rent through your bank account even if you’re living at home and making a contribution to the household. This is the best way to demonstrate regular rent payments over a period.
  
• What other costs can I expect when buying a property?
  We have a list of the key expenses you need to budget for as a first-time buyer.
  
• How long does approval in principle (AIP) last?
  Our approval in principle lasts for up to twelve months. This means you don’t need to have a property in mind when applying for a mortgage. You can take your time to find the right house for you. Once you find a property, approval is valid for six months.
  
• How long does a mortgage offer stay valid for?
  Our mortgage offers last for six months. This can generally be extended without difficulty if your circumstances haven’t changed.
  
• What insurance do I need when buying a home?
  You will need to arrange the appropriate mortgage protection and home insurance policies to protect both you and the property. These must be in place before you can draw down your mortgage.
  
  To find out more, or to organise cover, speak to a mortgage specialist or arrange your home and life insurance with another provider.
  
• What does loan-to-value (LTV) mean?
  This is the amount that you can borrow compared with the value of the property you are buying. For example, if a house is valued at €300,000 and you borrow €240,000, your LTV is 80%.
  
• When applying for a mortgage, will I be scrutinised for every penny I spend?
  We’ll review your statements, but you won’t be punished for the odd splurge. What’s important is that you’re able to bounce back from large instances of spending and tighten the purse strings to show a consistent pattern of saving.
  
• I pay child maintenance voluntarily. Should I include these payments in my 'outgoings' when applying for a mortgage?
  Yes. You should include all outgoing payments that you make, including child support and any other binding/voluntary payments when calculating your monthly outgoings.
  
• Will gambling transactions make me ineligible for a mortgage?
  The odd flutter on the 3.15 at Punchestown won’t affect your eligibility, but an account showing a consistent gambling history could raise a red flag so we’ll discuss this with you.
  
• Am I a first-time buyer if I've inherited/been gifted a property?
  Yes. You did not personally take out a mortgage on this property previously so you are considered a first-time buyer.
  
  Please note: If any other joint applicants are not a first-time buyer then none of the applicants can be considered a first-time buyer (in line with Central Bank regulations).
  
• What is a fresh start borrower?
  A fresh start borrower is someone who once had a mortgage as a first-time buyer but no longer owns the property or is responsible for the loan. This usually happens after a separation, divorce, or relationship breakdown.
  
• Can I use a gift as part of my deposit?
  Yes. A non-refundable gift can be used as part of your deposit. You’ll need to fill in a standard form (provided by us) that states the gift does not need to be repaid.