Coonan Financial Group
First Time
Buyers
Overview
Buying your first home is the biggest financial commitment you will make at that time and it can be daunting!
We offer expert advice and guidance so you can navigate the journey with qualified experts.
We will help you answer all your questions including the following:
How much can you borrow?
Are your savings enough for a deposit?
What are the Help to Buy & First Home Scheme?
What rate can you get?
FAQ
What is the maximum loan to value I can get?
As a FTB, you can borrow up to 90% of the value of the property, subject to affordability.
Should I pick a fixed rate or a variable rate?
A fixed rate gives you the comfort of knowing your payments will not change during the fixed term. You can also overpay on a fixed rate but with some restrictions, depending on the lender. Variable rates allow you the flexibility to pay whatever you like above the expected monthly payment, without incurring penalties or the breakage you might encounter for a fixed rate mortgage. However, variable rate repayments, by their nature, will fluctuate up and down over the mortgage as they are subject to change.
What is the Help to Buy?
This is a government backed scheme where first time buyers can get a maximum 10% of the value of the new property or €30,000, whichever is lower. This is available on new build or self-build properties only. Find out all you need to know here
What is the First Home Scheme?
Also known as a shared equity scheme. This means that homebuyers can receive funds from the Scheme in return for the FHS taking a percentage ownership in the property purchased. This is only available on new builds in private developments and you can get up to a maximum 30% of the value of the property. See their FAQ’s here
Can I get the HTB and the FHS together?
The short answer is, yes you can! However, instead of 30% on the FHS, this amount is reduced to 20% if you are also availing of the HTB
Do I have to pay stamp duty on a residential property?
Yes, 1% of the value of property up to €1m where it rises to 2%.
Do I need legal advice?
You definitely do! You have to engage with a solicitor when purchasing a property as they will complete the legal work and advise you as required.
First Time Buyer Tips
• To find out how much you can borrow, we will look at the following:
a) Gross annual income(s)
b) Repayment capacity – how you have shown that you can pay the proposed mortgage. This is evidenced by rent, savings usually over the previous six months but can also include loan repayments on a loan that has recently finished.
• Lenders will want to see your most recent six months bank, revolut & credit card statements. It’s vitally important that you:
a) Maintain these well
b) Clearly evidence rent, savings, salary, etc.
c) Avoid any missed payments, referral charges, returned direct debits or frequently being overdrawn.
• Avoid short term and credit card debt
• We recommend you save into a regular savings account separate to your working bank account.