The Irish mortgage market continues to evolve. Over the past year we’ve seen interest rate cuts, new mortgage products, and record-high approval levels. With rates currently ranging from 3% to 6.15%, buying your first home in 2026 will require careful planning and informed decisions.
Below is a clear, practical checklist to help first-time buyers navigate the year ahead.
1. Know This First: Not All Lenders Will Lend You the Same Amount
- All lenders assess mortgages based on repayment ability, but their rules are not identical
- Under Central Bank of Ireland rules:
- First-time buyers can borrow up to 4x allowable income
- Other buyers are capped at 3.5x allowable income
- What counts as “allowable income” varies widely between lenders:
- Bonuses, overtime, commission, and allowances may be assessed at anywhere from 0% to 90%
- Income exceptions are available:
- First-time buyers may be able to borrow up to 4.75x income, subject to lender criteria
Key takeaway: the lender you choose can significantly impact how much you can borrow.
2. Government Supports Can Help — But They’re Limited
Government schemes can be valuable, but most are restricted to new-build homes, which limits their usefulness for buyers targeting second-hand properties.
Main schemes to know:
- Help to Buy
- Up to €30,000 or 10% of the purchase price
- Paid as an income tax rebate
- Can be used toward your deposit on a new-build home
- First Home Scheme
- Bridges the gap between your mortgage, deposit, and purchase price
- Provides up to 30% of the property value
- Reduced to 20% if combined with Help to Buy
- Repayable when:
- You sell the home
- You move lender outside the scheme
- The home stops being your principal residence
- You can repay the equity stake at any time
- Local Authority Affordable Purchase Scheme
- Discounted new homes for moderate-income buyers
- Local authority retains an equity stake linked to the discount
Buying second-hand?
- Supports are limited
- Grants are mainly renovation-focused (e.g. vacant or derelict property grants)
- Mortgage approval can include refurbishment costs, provided the works add sufficient value
3. Understand Your Real Purchasing Power (Worked Example)
Scenario:
- Couple earning average incomes (€44,202 each)
- Deposit: €30,000
Mortgage capacity:
- Standard approval: €353,616
- With income exception: up to €419,919
What that means in practice:
- Second-hand home
- Deposit limits purchase price
- Max purchase price: €300,000
- Mortgage required: €270,000
- New-build home (with Help to Buy)
- Mortgage: €419,919
- Deposit: €30,000
- Help to Buy: €30,000
- Potential purchase price: €480,000
- Adding the First Home Scheme
- Could increase purchasing power to ~€500,000
- Subject to:
- Regional price caps
- Minimum mortgage of 70% for Help to Buy eligibility
4. Don’t Forget the Hidden Costs of Buying
Your deposit isn’t the only upfront cost.
Budget for:
- Deposit: 10% of the purchase price
- Stamp duty: 1% on homes up to €1m
- Legal fees: approx. €3,000
- Local Property Tax
- Management fees (apartments / managed estates)
Rule of thumb:
Budget 12% of the purchase price to comfortably cover deposit and transaction costs.
5. Navigating 2026: Knowledge Is Power
- There are now 10 lenders in the Irish market
- Fixed rates range from 1 to 30 years
- Cashback offers, green rates, and overpayment options add complexity
- The “best” mortgage depends on:
- Income structure
- Future plans
- Flexibility needs
- Long-term affordability
Final Thought
Buying your first home in 2026 will still be challenging—but it’s achievable with the right preparation.
Understanding lender criteria, mortgage structures, and government supports—and getting expert advice when needed—can make the difference between simply getting approved and securing the right mortgage for your future.
In 2026, informed buyers are empowered buyers.
Get in touch with our expert mortgage team at www.doddl.ie to see how we can help with your mortgage and homebuying journey in 2026.
