Purchasing a new home can be both exciting and stressful. To get you started, we’ve put together some guidance to help you navigate the process as easily as possible, so you can focus on enjoying this exciting time.
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Work out how much you can afford
Most buyers will need finance of some kind, so it is important to work out how much you can afford to borrow. This relies on the loan-to-value (LTV) and loan-to-income (LTI) limits set by the Central Bank:
The current LTV limits are: First-time home buyers & subsequent buyers (90% LTV maximum, so you pay 10% deposit) Buy-to-let buyers (70% LTV maximum, so you pay 30% deposit) The current LTI limits are as follows: First-time buyers: Maximum of 4 times your gross income (combined gross income if buying with a partner) Subsequent buyers: Maximum of 3.5 times your gross income (combined gross income if buying with a partner).
Organising your finances
It will take you some time to save for a deposit; use this time wisely by getting your finances in order. Typically, you will need to produce six months of bank statements when applying for a mortgage. Ensure that your bills are paid on time, including your credit card and existing mortgage (if you have one). Try to build up solid evidence of regular savings too.
Our guide to the Help-to-Buy Scheme
The Help-to-Buy incentive is a scheme for first-time buyers to help them with their deposit on a new-build or self-build house. Evara is an approved developer under the scheme. The incentive is based on a refund of the Income Tax and Deposit Interest Retention Tax (DIRT) that you have paid in the last four years. The amount refunded is subject to limits; more details are available in our Help-to-Buy Scheme Guide.
Help to buy scheme PDFOur guide to the First Home Scheme
The First Home Scheme (FHS) is a shared equity scheme, designed to help bridge the gap for first-time buyers and eligible homebuyers between their deposit and mortgage, and the price of their new home. It is available for newly built houses or apartments in a private development in the Republic of Ireland. More details available in our First Home Scheme Guide.
First Home Scheme PDF
Have a good employment record
Complete any probation period and ensure you are in secure, continuous employment for at least six months/one year.
Get your deposit ready
Make sure you have enough saved for your house deposit, legal fees and any other payments.
Minimise loans
If possible, pay off any existing loans as any repayments will be deducted from your disposable income available for mortgage payments.
Current account
Your bank will scrutinise at least six months’ worth of statements so keep your accounts as clean as possible with no referral, penalty fees or missed payments.
Clear your credit card
Try to pay off your credit card in full each month; if this is not possible, keep within the credit limit and don’t fall into the trap of only paying the minimum amount each month.
Pay rent by standing order
Banks will take into account your rent payments as long as they are clearly documented, i.e. through a regular standing order.
Be a regular saver
Ideally, save a regular amount every month; this will show your capacity to reach mortgage payments and live within your means.
Check your credit rating
Any missed payments or defaulted loans will affect your credit rating, which will be checked by the bank. You can find out your credit rating at icb.ie.
Shop around
Different banks offer different deals and rates. Do your research and try to get the best deal you can. If in doubt, a mortgage broker can be a great help.
Take your time
It can take several months to get your mortgage approval. Be patient and don’t rush into a decision.
Location
Think about where you want to live in relation to friends and family, your workplace etc.
Affordability
Before you start looking seriously, work out how much you can afford based on your income and mortgage repayments.
Transport Links
Think about how you will travel to work and where you want to go – are there good public transport links close by your new home?
Amenities
Do you need to be close to schools/shops/leisure facilities? Research the amenities in the immediate area.
Build Quality
Research the developer and the quality of their work. Evara homes are built to the highest standards and come with 10 years warranty. Energy efficiency is a priority, along with spacious, bright interiors designed for modern living.
Arrange your finance
Make sure you have your deposit amount, your mortgage approval and any other financial considerations in place, such as the Help to Buy incentive.
Engage a solicitor
You will need a solicitor to manage the transfer of ownership of the property and to communicate with Evara’s solicitor. Make sure you are aware of the solicitor’s fees for this service.
Pay your booking deposit
Once you have chosen your new home, you must complete the reservation form and pay the booking deposit, which is fully refundable until the sale contract is signed
Signing of Contracts
Evara’s solicitors will send your solicitor the contract for sale. The contract should be studied carefully; your solicitor can address any queries to Evara’s solicitors. Once these queries are answered and you are happy with the contract, arrange a meeting with your solicitor to sign the contract. At this stage, you must pay the balance of your deposit (minus your booking deposit and any refund from the Help to Buy incentive, if applicable).
Exchange of contracts
Once Evara countersigns your contract, your commitment to purchase is legally binding.
Build progress
Your sales agent will update you regarding the progress of the build and the completion date. Bear in mind that your mortgage approval may have to be extended according to the completion date as mortgage approval usually lasts for six months.
Snagging your new home
When your home has been completed, you will be invited to visit and make a snag list. You can do this yourself or instruct a surveyor on your behalf.
Snagging will be completed and we will invite you for re inspection.
Completing the sale
At this stage, a completion notice will be sent to your solicitor and you should contact your bank to draw down your mortgage. Make sure you have life insurance in place too.
Collecting your keys
Once Evara’s solicitors confirms full receipt of funds, closing will be confirmed, and the keys and manuals for your new home will be presented to you.
All that’s left is to move in and arrange the housewarming party! Congratulations!