For many people in Ireland, buying a first home is a life milestone that symbolises stability and long-term security.
However, rising property prices and stricter lending rules have made the journey to homeownership more challenging, reinforcing the need for a structured, strategic savings approach.
The roadmap begins with understanding your target deposit. First-time buyers typically require at least 10 per cent of the property price, but saving more can reduce borrowing costs and improve mortgage approval prospects.
Creating a dedicated savings plan is essential. The most effective method is to separate your deposit savings from everyday spending accounts. Opening a specific savings account, preferably one with a competitive interest rate, helps keep your goal clear and prevents accidental spending.
Automating monthly transfers ensures consistent progress and turns saving from an occasional decision into a dependable habit. Tracking your balance over time provides motivation and visible evidence of your efforts.
Government schemes designed to support first-time buyers can significantly strengthen your savings efforts. Understanding the available incentives, such as tax-related supports or schemes that contribute to your deposit, may reduce the time needed to reach your deposit target. It is wise to evaluate eligibility early and incorporate these supports into your long-term planning.
Alongside saving, preparing your finances for the mortgage application process is crucial.
Lenders examine your spending patterns, credit history and financial stability. Demonstrating consistent saving, avoiding unnecessary debt and maintaining a sensible lifestyle during the months leading up to your application increases your likelihood of approval.
Organising documents such as bank statements, payslips and identification well in advance helps streamline the process.
Prospective buyers must also become familiar with mortgage types, interest rate structures, loan terms and the long-term implications of each choice. A fixed-rate mortgage offers stability, while variable options may provide flexibility. Each has advantages that depend on your personal risk tolerance and financial expectations.
Purchasing a home also involves costs beyond the deposit, including legal fees, valuation reports, insurance and potential repairs. Incorporating these expenses into your savings plan ensures that you are fully prepared rather than stretched thin at the last moment.
For many, navigating the complexities of saving, government supports, mortgage rules and long-term planning can feel overwhelming. Seeking expert financial advice can greatly simplify the process. A financial advisor can help assess your savings capacity, optimise your strategy, guide you through available incentives and prepare you for the mortgage application.
With a structured plan and professional support, the path to homeownership becomes clearer and far more achievable.
Marie Carr, CFP MSc BBS QFA RPA SIA is a CERTIFIED FINANCIAL PLANNER. You can contact her through Fairstone Letterkenny (formerly John F. Loughrey Financial Services) by telephone on 074-9124002 or by email on marie.carr@fairstone.ie
