Buying a house in Ireland: a step-by-step guide

Buying a home in Ireland can be challenging, especially with rising house prices and limited properties for sale. Whether you’re a first-time buyer or looking to upgrade, understanding the whole process can smooth your path to homeownership.

This guide covers everything from applying for a mortgage and setting a budget to gathering information from estate agents. We’ll take you through each step to buying a house in Ireland.

Before jumping into the steps to buying a house, it’s worth thinking about how you will go about getting a mortgage. Unless you’re in the fortunate position of being able to buy a house outright, you’ll probably need to take out a mortgage to buy a house in Ireland. A mortgage is a type of loan against the value of the property, meaning that the lender can reclaim the property if you are unable to make repayments. 

It can be a struggle getting approved for a mortgage in Ireland, but it can help to consider the following steps:

1. Compare mortgage offers: To start with, you could contact several mortgage providers to compare offers. Alternatively, you could use a website with a mortgage comparison table. Each provider may offer different terms, so shopping around can help you find the best deal for you.

2. Check how much you’ll pay monthly: The Competition and Consumer Protection Commission (CCPC) offers a mortgage calculator. This handy tool helps you estimate your monthly repayments based on the loan amount, mortgage term, and interest rate. Of course, checking with your chosen mortgage provider will give you the most accurate repayment information.

3. Get approval: Before you start house hunting, it is often recommended to get a ‘mortgage approval in principle’ or ‘mortgage in principle’. This is a conditional approval from a lender that indicates how much they might be willing to lend you based on your financial situation. You can then use this information to set a realistic budget, as you’ll have a better idea of the price range you can afford. A Mortgage in principle can give you an edge over other buyers when making an offer, since sellers might see you as a serious buyer.

4. Get formal approval: While this step comes later on in the house-buying process, it’s worth noting that you will eventually need formal mortgage approval before signing any contracts for your chosen property. You’ll have to submit detailed information to your lender for a final decision. Once you’ve received formal approval, it means that your lender has agreed to provide the mortgage for the specific property you’ve chosen.

Once you’ve checked your eligibility for a mortgage, you can get started with the process of buying a house. While this will look different depending on whether you’re a first-time buyer or a more experienced property buyer, you can take from this list whatever might help you to make the whole process go more smoothly. Here are the most common steps to buying a house in Ireland.

Creating a budget might not be the first thing you think of, but it can be a useful first step when working out how to buy a house in Ireland. By reviewing your income and potential expenses, you can work out a realistic price range for your new home. 

As part of this budget, you can consider how much you will have to spend on your new home. From mortgage repayments and moving costs to solicitor and surveyor fees, buying a house is a long-term financial commitment with several different costs involved.

Here are just some of the main costs involved in buying a house in Ireland:

• Mortgage deposit: The Central Bank sets limits on how much you can borrow as a mortgage, so you’ll need to cover the rest of the purchase price with a deposit. Typically, you need to pay a deposit of at least 10% of the property’s price, but depending on your situation, you might need to pay up to 20%. Our page on how to save for a mortgage sets out steps you can take to reach your house-buying goals more quickly.

• Fees: Many prospective house buyers enlist a solicitor to handle the legal aspects of buying a home in Ireland, ensuring all paperwork and contracts are in order. Some also opt to hire a surveyor, who assesses the property’s structural integrity, identifying any potential issues that could impact its value or safety. If you’re buying a house for the first time, making use of these services can provide peace of mind before completing the purchase.

• Mortgage protection insurance: This insurance is typically recommended to cover the balance of your mortgage if you pass away before it’s paid off. This means that your family can keep the house without having to continue repaying the mortgage.

• Stamp duty: Stamp duty is a tax paid when buying property in Ireland. It’s calculated as a percentage of the property’s final sale price, and is payable to the government. Stamp duty applies to all home purchases, so it’s an important cost to factor into your budget.

• Renovation and moving costs: While not essential, you might consider potential expenses for renovating the property to your taste or making it habitable. Moving costs, such as hiring a removal van, could also be factored in. If you want to be really prepared, you might even consider the costs of fixtures, fittings, and energy bills once you’ve moved in. 

When creating your budget, your desired location will significantly influence your decisions. Houses in the centre of Dublin command some of the highest house and apartment prices in Ireland, but areas of mid-west Ireland, including Tipperary and Limerick, have also seen large price increases in the past year.

If you’ve added up all your future home expenses, and you’re wondering, “How can I afford all this?” We’ve put together a list of 71 ways to save money to help you reach your goals more quickly.

Now to the exciting part of the house-buying process in Ireland: beginning your search for a home. Whether you already have a specific property in mind or are just starting out, here are some resources to explore:

• Property listings: Visit property websites, auctioneers, and estate agents to find available properties.

• Public register: Check the Property Services Regulatory Authority’s website, which lists registered auctioneers and estate agents.

• Individual sellers: Sometimes, sellers advertise properties directly. You might find listings in newspapers or property supplements.

• Price information: If you’re open to different areas, you could check the Residential Property Price Register. This resource provides historical sales data, helping you see how much properties in your desired location have sold for in recent years.

Once you’ve found a property you’re interested in, the next step is to negotiate with the seller, typically through their estate agent. In this negotiation, you both agree on the price and terms of the sale. If you’ve created your budget and researched average property prices in the area beforehand, especially for auctions where prices can vary widely, you’ll go into this negotiation process more informed.

After you submit your offer, you wait for the seller’s response. If they accept your offer, you’ll proceed to sign a contract for sale, which your solicitor will arrange. It’s important to be aware that once you sign this contract, backing out could mean losing your mortgage deposit. The final exchange of contracts formalises the sale agreement between you and the seller.

After negotiating and agreeing on terms, the final steps to buying a house in Ireland involve legal processes and financial responsibilities. This is where your solicitor plays a key role.

Your solicitor will send a list of questions about the property to the seller’s solicitor. These questions, called Requisitions on Title, cover important details like property boundaries, utilities, and any legal restrictions. Once everything is clarified, the Deed of Conveyance is prepared and signed. This document legally transfers ownership of the property to you.

At this stage, you need to pay stamp duty. This fee must be paid before the sale is completed on the agreed-upon completion date. Your solicitor will handle this payment and make sure all the necessary paperwork is correctly submitted.

Once everything is finalised on the completion date and the funds have been transferred, you’ll get the keys to your new home. You can usually pick them up from the estate agent or directly from the seller.

If you have a mortgage, the property’s title deeds will be sent to your lender. If you bought the property outright, you’ll keep these important documents yourself. They show that you’re the official owner of the property. Once that’s done, you’ve completed the process of buying a house in Ireland.

Now that you’ve done all the hard work, there are just a few more things to take care of:

• Insurance: Arrange home insurance to protect your property and belongings. This insurance is important because it covers you financially if something happens to your home, like damage from a fire, storm, or theft. Most mortgage lenders will require you to have home insurance before they lend you the money to buy the house.

• Registering with the local authority: It’s important to notify your local council of your change of address, so that they have the correct information for local services, such as waste collection and property tax.

• Electoral register: Update your address on the electoral register so you can vote in local and national elections. You can usually do this online or through your local council.

• Utilities and services: Set up or transfer utilities such as electricity, gas, water, and internet to your name. Make sure these essential services are connected and working when you move in.

As a first-time buyer, you’ll go through the same process of buying property as any other homebuyer in Ireland, including paying stamp duty and solicitor fees. However, there are some schemes and considerations to help you if you’re buying your first home:

• First-time buyer schemes: Look into government initiatives like the Help to Buy (HTB) scheme, which provides tax relief on new home purchases. Another option is the First Home Scheme (FHS), where the government and some banks can cover up to 30% of the cost of your new home. In exchange, they receive a share in the property. This scheme is designed to lower the initial cost of buying or building your first home.

• Mortgage approval: While this is generally considered good practice for anyone buying a house in Ireland, it can be especially beneficial for first-time buyers. Getting mortgage approval in principle early can help you understand your budget and put you in a stronger position with sellers.

• Professional advice: You might consider using the services of a solicitor and possibly a financial advisor experienced with first-time buyers. They’ll guide you through the process of buying a house in Ireland and ensure all legal and financial aspects are covered.

When you’re looking at houses, you will most likely take part in viewings. Being prepared can make all the difference. Knowing the right questions to ask during these visits helps you compare properties and find the right home for your needs.

Here are some things to check yourself, and it can be worth asking the estate agent if you’re unsure:

• Structural condition: Look for signs of dampness, cracks, or other structural issues.
• Utilities and systems: Check the condition of plumbing, heating systems, and electrical wiring.
• Legal compliance: Verify planning permissions, compliance with building regulations, and any legal issues.
• Security: Check door and window locks, and ask about local crime rates.
• Check the Building Energy Rating (BER): Every home for sale in Ireland must have a BER certificate, which rates its energy efficiency from A (most efficient) to G (least efficient).
• Radon risk: Refer to the EPA’s Radon Risk Map to see if the area is at risk, and inquire if the property has been tested.
• Research the area: Find out about noise levels in the area and the community.
• Check title deeds: Ensure the seller’s solicitor has the title deeds to avoid delays in the sale process.

You can find a full buying a house in Ireland checklist online. For a detailed list of questions and more resources, you might refer to the CCPC’s property search checklist and question guide (PDF).

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