It’s one thing finding the home of your dreams – it’s quite another to be in a position to buy it. From government schemes to family gifts, to clean bank accounts and everything else mortgage-related, it pays to do your homework before getting out there to look at new homes.
Fiona McMahon, a senior mortgage adviser at NFP Ireland, urges would-be homebuyers to be “proactive rather than reactive”, noting that many people look at showhomes first, and then try to secure mortgage approval.
“The main thing when looking at buying a new home is to be mortgage-ready. You need to have your ducks in a row,” she says, adding that when making a booking deposit, estate agents will ask you to show your approval in principle (AIP) document.
So, to help you get ready, here’s what you need to know about financing a new home in Ireland this spring.
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Government help
There are now a number of Government-backed schemes aimed at closing the affordability gap for buyers of new homes. But, given continued price growth, they may not be as attractive as previously.
Take the Help to Buy scheme. There were expectations, for example, in the run-up to last October’s budget, that the ceiling on Help to Buy, which offers a tax rebate of as much as €30,000 towards the purchase of a new home, would be extended to closer to €600,000. However, no change was announced, which means that the property you’re hoping to buy must still be valued at €500,000 or less. This can make it difficult to find a home that qualifies for the scheme, particularly in urban areas such as Dublin.
“It’s a huge issue,” says McMahon. “It needs to be looked at, especially in today’s climate.”
Help to Buy is set to run until the end of 2029, and interest in it remains high; in the 11 months to November 2025, for example, there were more than 33,000 applications, and almost 9,000 successful claims.
If you do qualify for Help to Buy, you can consider using it in conjunction with another scheme, First Home. This is a €740-million fund aimed at closing the gap between what you might be able to afford and what you want to pay, through the Government taking a stake in your property of up to 30 per cent (or 20 per cent if you’re also getting Help to Buy).
A price ceiling also applies to this scheme of as much as €500,000 in Dublin and Cork, falling to €375,000 in counties such as Sligo, Leitrim and Donegal.
Figures show there have been more than 20,000 expressions of interest in the scheme since it launched in 2022, with 9,008 buyers approved and almost 5,000 homes bought using it as of the end of 2025.
First Home is not for all, however, and remember that the equity stake will have to be repaid should you choose to move. If you don’t, you will start paying a fee on it from year six.
If you have trouble securing a mortgage through a traditional lender but are still keen to own your own home, you could consider applying for the Local Authority Home Loan. This is a Government-backed mortgage for first-time buyers and fresh-start applicants (those who have previously bought property as part of a previous relationship which has broken down or became bankrupt).
It comes with a rate which is fixed over 25 to 30 years, offering an impressive level of certainty. Current rates are 4 per cent, fixed for 25 years, increasing to 4.05 per cent for loans fixed for between 25 to 30 years. Watch out for the extras, however; this scheme also requires you to take out specific local authority mortgage protection insurance, which does add to borrowing costs.
If you fancy a new home but don’t yet have the financial rigour to qualify for a mortgage, there are also new schemes emerging in the private sector, such as rent-to-own platform Homely, which aims to transform renters into homeowners within three to five years.
Save money on your mortgage
Whether or not you secure Government help when buying your new home, getting the best mortgage – at the best rate – is going to be very important. The savings can be significant if you can secure financing at a lower rate.
Rates are heading downward – recent figures from the Central Bank show that mortgage rates are now at their lowest rate since February 2023, at 3.53 per cent.
Green rates, available on homes with a Ber rating of A1 to B3, typically offer the best value in the current market.
Bank of Ireland, for example, has a four-year fixed rate at 3.1 per cent. On a €450,000 mortgage over 30 years, monthly repayments would be €1,921 – compared with €2,347 a month on Nua Money’s 4.75 per cent five-year fixed rate. So finding the best rate does matter.
“First-time buyers do like the security of the fixed rate,” says McMahon.
Another option is Avant’s flex mortgage, which is a bit like a tracker in that it follows the 12-month Euribor, plus a margin. It is currently at about 3.17 per cent.
Remember, a variable rate gives you flexibility should you wish to move or overpay your mortgage by a large sum (you can do this also on a fixed rate, just typically for only a fixed amount).
Bear in mind, however, that finding the best mortgage for you may not mean finding one at the lowest cost.
This is because some lenders can be more flexible when it comes to the term they offer, and how they calculate your income, which goes toward your four-times income multiple for calculating how much you can borrow – but they might also charge more for this. Nua Money, for example, offers a term of up to 40 years, while MoCo, the Irish unit of Austrian bank Bawag promises 35-year loans up to the age of 80.
Moreover, Nua Money might take some social welfare payments/maintenance payments into consideration when calculating how much you can borrow – it is the only lender that will take on board child benefit as income.
If you’re a civil servant, ICS will go three points up on the salary scale when determining how much you can borrow.
There may also be the possibility of getting an exception, which means you can borrow more than four times your combined income, as per Central Bank rules. However, as McMahon notes, exceptions “aren’t that easy to get”.
“We do get them across the line, but I get more declined than I get approved,” she says, noting that applicants’ net disposable income has to be strong to qualify.
Get some cash back
Looking for some money to furnish your house? Or to pay back expensive short-term loans?
Cashback mortgages can help with this. They offer either a fixed sum (Haven, for example, offers €5,000) or a percentage of the value of your loan back (up to 3 per cent with Bank of Ireland).
Beware the small print however; such mortgages can come with a welcome cash injection, but they can end up costing you more over the longer term, as the cheapest mortgage rates typically aren’t available on these products.
As mentioned, BOI has a green rate of as low as 3.1 per cent – but if you go for a cashback, you can’t avail of this rate.
As such, McMahon advises that if you do go for a cashback deal and lock into a higher rate, you should look to switch to a lower rate once the fixed term ends.
