Buying a home

Deposit

The part of the price you pay from your own money. Central Bank rules require at least 10% for a home you will live in and 30% for a buy-to-let.

What it means

Your deposit is the price minus the mortgage. For owner-occupiers the minimum is 10% because lenders can lend up to 90% of the value. First-time buyers of a new home can use a Help to Buy refund towards it; Revenue pays that refund to the developer as part of the deposit.

Buying usually involves two payments. A small booking deposit goes to the estate agent when you go sale agreed. The contract deposit, usually the balance of your 10%, is paid when you sign contracts, and the mortgage covers the rest at drawdown.

Keep stamp duty and legal fees separate. They are paid on top of the deposit, not out of it.

Formula

Minimum deposit = price x 10% (owner-occupier)

Example

On a €350,000 home the minimum deposit is €35,000 and the most you can borrow is €315,000.

Work it out

Mortgage calculator

Related terms

Loan-to-value (LTV)The mortgage as a share of the property's price or valuation. Owner-occupiers can borrow up to 90%, so they need at least a 10% deposit.Help to Buy (HTB)A refund of income tax and DIRT for first-time buyers of new homes up to €500,000: the lesser of €30,000, 10% of the price or 4 years' tax.Sale agreedThe stage where seller and buyer have agreed a price but nothing is legally binding. Either side can still walk away until contracts are signed.

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