The name provides a definition for itself. First time home buyers are people in the market buying a home for the first time. Compared to other home buyers, such as trader-up borrowers and mortgage switchers, first time buyers have different benefits and restrictions when borrowing than other borrowers. The Central Bank of Ireland requires a 10% down payment for first time buyers. Now, for first time buyers, a 45,000 euro down payment for a 450,000 euro home may be somewhat daunting. However, the Central Bank has offered assistance for their first time buyers to keep them in the market. The Central Bank offers a help to buy program. This benefit allows for first time buyers of new houses and apartments to take a 5% tax rebate off of properties less than 500,000 euros. In a recent case at Irish Mortgage Brokers, a married couple came looking for a mortgage on their first home. The couple did not have a home in mind at the time, but based on their income, the couple had roughly below 500k to spend. Both individuals had well-established and stable positions in their respective companies. In addition, both parties contributed to a joint checking account regularly, which showcased to the broker the couple’s ability to generate steady income. The applicants were previously renters and were good on their payments. In addition, the couple had two cars in which they intended to move forward with and the couple had never missed a repayment. Based on the status, the couple decided to move forward and come to Irish Mortgage Brokers to apply for a first time buyer’s mortgage. The mortgage broker looked at the couple’s proposal and financials, including all of their employment and income details. Based on the information, their representative from Irish Mortgage Broker approved the couple because they fulfilled the Bank of Ireland lending criteria, had stable employment, had consistent income and had demonstrated ability to repay through both their previous renting experience and their car payment.
Once the couple chose a home around their intended 500k, the couple wanted to take full advantage of the Help To Buy first time buyers’ benefit. As stated, the couple could receive a tax rebate of 5% if the couple bought a new home or apartment under 500,000 euros. For this couple, after building, the home valued just barely below 500k. Now, the maximum relief that Central Bank of Ireland will provide for new home buyers that are under 500,000 euro is 20,000 euros. Since this couple purchased a home just barely under 500k, the Central Bank offered this couple the maximum relief in full, a tax rebate of 20,000 euros. For new home buyers in the market, this may be a very beneficial tax rebate that can help home buyers who are intimidated by the 10% down payment. If you are a first time home buyer, or any borrower at all, and want assistance navigating the home buying process, contact Irish Mortgage Brokers. We would love to help you with this process so you can find your dream home, as we did with this first time home buying couple.
