No Deposit? No Worries!

In an inflated economy, saving up for a deposit can seem like the most difficult part of buying a home especially when most of your net income is going into paying rent and your monthly bills. While having a large deposit gives you the best chance of getting a good mortgage deal with a low interest rate and a bigger house, there are options available for people with lower deposits and government help to get you on the housing ladder.

The average first-time buyer puts down a 10% deposit on their first home, which could mean finding a daunting €30,000 (on a €300,000 property) or more. However, there are also a few government schemes to help first time buyers get on the property ladder. These include the Help to Buy & First home Shared equity scheme.

Although the Help to buy scheme only applies to new build properties, with the purchase price of less than €500,000 and has a maximum amount of €30,000 that you can claim (please see more information about the scheme on the Citizens information website or contact me on 016583040 to this discuss this further), you can avail of this scheme and not need to provide a deposit.

For example, if you are buying a new build property that costs €300,000 and have been approved for a mortgage of €270,000 and you also qualify for the full €30,000 Help to buy funds, then the 30k would serve as the deposit you need to buy the property. Hence, you would not have to provide the 10% deposit as you would be able to get that via the Help to buy scheme.

The first home scheme (FHS) on the other hand can assist in buying both new builds and second-hand properties. For tenants looking to buy their current home from their landlords, they would be able to avail of the first home scheme.  

The Government of Ireland in partnership with Participating Lenders such as AIB, Bank of Ireland, EBS, Haven & Permanent TSB, has introduced this Scheme to help people get on the property ladder by bridging the gap between the deposit, mortgage, and the price of the property. For more information about the scheme please contact me on 016583040 or go to the First home sheme website. The first home scheme can approve you more than the help to buy scheme. The max amount you can avail of depends on your county but the scheme cannot give you more than 30% of the purchase price. The FHS would also require you to have a minimum 10% deposit, however, you can use both the help to buy and first home scheme together if you do not have a deposit.

For example, if you are buying a new build property of €390,000 in Co. Meath and have been approved for a mortgage of €290,000 by one of the scheme’s participating lenders and also qualify for help to buy of €30,000 and FHS of €70,000. Both the Help to buy and FHS can make up the deposit needed to buy the property.

So, if you do not have enough deposit, all hope is not lost as you can avail of one of these schemes as a first-time buyer. There are some conditions to some of these schemes and we at Irish Mortgage brokers would be able to advise you on these schemes and if you are eligible for it. Feel free to contact me, Timileyin Arimoro on 016583040 or ta(at)mortgagebrokers.ie for a free consultation.