Buying a Home in Ireland: Budget, Deposit and Upfront Costs

The first number in a home search should not be the maximum mortgage.

It should be the amount you can spend without using every euro you have.

Buying a home in Ireland requires cash for more than the deposit. You may also need money for:

• stamp duty;
• solicitor and conveyancing costs;
• valuation;
• structural survey or engineer’s report;
• mortgage protection;
• home insurance;
• moving;
• furniture and appliances;
• repairs;
• management-company charges or service charges;
• and a cash reserve after closing.

That is why a buyer with a €40,000 savings account does not necessarily have a €40,000 deposit.

The minimum deposit under the mortgage rules

For principal-home purchases, the Central Bank’s current mortgage measures require:

For a €400,000 home, a 10% deposit is €40,000.

That is only the minimum mortgage deposit.

It is not the total cash requirement.

Build the budget in layers

A useful home-buying budget has four layers.

Do not let the first three consume the fourth.

Stamp duty

For standard residential purchases, Revenue’s current rates are:

Portion of consideration	Rate
Up to €1 million	1%
Over €1 million to €1.5 million	2%
Over €1.5 million	6%

The higher rates apply only to the relevant portion above each threshold.

For a €400,000 home:

Stamp duty = €4,000.

For a €1.2 million home:

• first €1,000,000 × 1% = €10,000;
• next €200,000 × 2% = €4,000;
• total = €14,000.

Use the Stamp Duty Calculator rather than doing the bands manually.

Solicitor and conveyancing costs

You need a solicitor to handle the legal transfer.

The CCPC recommends choosing a solicitor early and obtaining a written cost breakdown.

A quote can include:

• professional fee;
• VAT;
• search fees;
• Land Registry / Tailte Éireann fees;
• registration costs;
• and miscellaneous outlays.

Do not compare quotes using only the solicitor’s headline professional fee.

Ask for the total estimated amount including VAT and outlays.

Valuation

Your lender will require a valuation from an approved valuer before full mortgage drawdown.

A valuation is primarily for the lender.

It is not a structural survey.

A property can be worth the agreed price and still have expensive defects.

Keep the two jobs separate:

valuation → confirms market value for the lender

survey / engineer’s report → investigates condition for you

Structural survey

A survey is not legally mandatory for every home purchase, but the CCPC strongly recommends it, particularly for second-hand and older properties.

A useful survey can identify issues such as:

• structural cracking;
• roof problems;
• damp;
• drainage;
• extensions;
• visible compliance concerns;
• and other defects requiring specialist follow-up.

The surveyor cannot guarantee that every hidden problem will be found.

But skipping an independent inspection to save a few hundred euro can expose you to a much larger repair bill.

Mortgage protection and home insurance

Most owner-occupier mortgage borrowers will need mortgage protection, subject to statutory exemptions.

Your lender will also require adequate buildings insurance before drawdown.

You can shop around.

The CCPC explicitly states that you are not required to buy mortgage protection or home insurance from your mortgage lender or broker.

Chapter 8 deals with insurance and drawdown in detail.

New home versus second-hand home

The cash requirements can differ.

New build

Potential additional items:

• booking deposit;
• contract deposit;
• snagging;
• flooring if not included;
• appliances;
• landscaping;
• window coverings;
• connection or management charges;
• solicitor;
• stamp duty.

A new home may qualify for Help to Buy and/or the First Home Scheme if the conditions are met.

Second-hand home

Potential additional items:

• booking deposit;
• full survey;
• repairs;
• BER upgrades;
• appliances or furnishings;
• solicitor;
• stamp duty;
• valuation.

Help to Buy does not apply to ordinary second-hand purchases.

The booking deposit is not the same as the contract deposit

When an offer is accepted, the estate agent often asks for a booking deposit.

The CCPC notes that this can be a fixed amount or a small percentage.

For a private-treaty sale, the booking deposit is generally refundable until contracts are signed.

Later, when contracts are signed, the contractual deposit becomes part of the legally binding transaction.

Do not mentally count the same deposit twice when building your cash-flow plan.

Your maximum mortgage is not your maximum comfortable purchase price

Suppose a household is approved for €400,000.

That does not automatically mean buying a €444,444 home with the minimum 10% deposit is sensible.

Ask:

• What would the monthly repayment be?
• What happens if the fixed rate ends at a higher rate?
• What if childcare starts?
• What if one income falls temporarily?
• How much cash remains after closing?
• Are management fees or commuting costs higher?
• Will the property need €20,000 of work?

The lender’s risk limit and your household comfort limit are different numbers.

Use the Mortgage Affordability Calculator alongside the Mortgage Borrowing Calculator.

A worked budget

Suppose you are targeting a €400,000 second-hand home.

Illustrative minimum deposit: €40,000.

Stamp duty: €4,000.

Then add your actual quotes for:

• legal costs;
• valuation;
• survey;
• insurance;
• moving;
• immediate repairs;
• furnishings;
• and the post-closing reserve.

If those additional items total €12,000 and you want €8,000 left after closing:

cash target = €40,000 + €4,000 + €12,000 + €8,000 = €64,000.

The numbers will differ for every buyer.

Use the House Buying Costs Calculator to build your own.

How much of your savings should become the deposit?

The minimum deposit is a regulatory floor, not a target.

Putting down more can:

• reduce the mortgage;
• reduce monthly repayments;
• potentially improve available mortgage rates through lower LTV;
• and create more equity.

But using every euro for a bigger deposit can leave you cash-poor immediately after closing.

The correct deposit is therefore a balance between:

lower debt and financial resilience.

Before you start viewing

You should know:

Once those numbers are clear, the next step is the mortgage itself.

Frequently asked questions

How much deposit does a first-time buyer need in Ireland?

Under the Central Bank’s standard mortgage measures, first-time buyers generally need a minimum 10% deposit for an owner-occupied home.

Is stamp duty included in the mortgage?

Normally no. Stamp duty is a separate purchase cost that needs to be funded alongside the deposit and other closing costs.

Is a survey mandatory?

Not for every purchase, but the CCPC recommends a structural survey, particularly for second-hand and older homes. A lender valuation is not a structural survey.

How much should I keep after buying?

There is no universal amount. Keep enough that normal emergencies, repairs and household costs do not immediately require new debt.