How To Buy A New Build Home In Ireland

🏡 How to Buy a New Build Home in Ireland: First-Time Buyer Mortgage Guide

Buying a new-build home in Ireland? The key steps are to understand your mortgage borrowing capacity, build your deposit, check government schemes such as Help to Buy and the First Home Scheme, get mortgage Approval in Principle and then reserve a suitable property.

A mortgage broker can make the process easier by comparing lenders, assessing your affordability and helping you understand which supports you may qualify for.

Park Financial specialises in first-time buyer mortgages in Ireland and provides its mortgage broker service free of charge to customers.

This guide explains exactly what you need to know.

📋 Contents

1. 🏠 What is a new-build property?
2. 💶 How much can a first-time buyer borrow?
3. 📊 What is mortgage repayment capacity?
4. 🪙 How much deposit do you need?
5. 🏛️ What government schemes are available?
6. 🔑 How does Help to Buy work?
7. 🤝 How does the First Home Scheme work?
8. 🏘️ What is the Affordable Purchase Scheme?
9. 🏦 What is the Local Authority Home Loan?
10. 📑 What documents do you need?
11. 💸 What other costs should you budget for?
12. 📝 New-build mortgage: step-by-step
13. ⭐ How can Park Financial help?
14. ❓ New-build mortgage FAQs

🏠 1. What Is a New-Build Home?

A new-build property is a newly constructed house or apartment being purchased as a new home.

New builds are particularly attractive to first-time buyers because some government supports are specifically designed for newly built properties.

The main supports to investigate are:

• 🔑 Help to Buy (HTB)
• 🤝 First Home Scheme (FHS)
• 🏘️ Local Authority Affordable Purchase
• 🏦 Local Authority Home Loan

Eligibility varies by scheme, income, property, location and mortgage lender.

Tip: Check your mortgage and scheme eligibility before reserving a property.

💶 2. How Much Can a First-Time Buyer Borrow?

Under the Central Bank of Ireland’s mortgage measures, a first-time buyer can generally borrow up to 4 times gross household income, subject to lender criteria.

First-time buyers generally also need a minimum 10% deposit, meaning a mortgage can normally cover up to 90% of the property’s value.

Example

If your combined gross income is €90,000:

€90,000 × 4 = €360,000

That gives a potential mortgage limit of €360,000 before the lender considers your full affordability.

If you have a €40,000 deposit, your potential purchase budget could be around €400,000, before considering other costs and any applicable government support.

Important: 4 times your income is a regulatory limit, not a guaranteed mortgage approval. Lenders also assess your repayment capacity, income, deposit, existing debts, spending and credit history.

📊 3. What Is Mortgage Repayment Capacity?

Repayment capacity is your ability to afford the mortgage repayments on an ongoing basis.

It is one of the most important parts of a mortgage application.

Lenders can look at evidence such as:

• Current rent
• Regular savings
• Cleared loans
• AVCs or pension contributions
• Existing financial commitments
• Your income and spending pattern

Park Financial highlights repayment capacity as one of the four key areas lenders assess, alongside secured income, sufficient deposit and good credit history.

💡 Repayment capacity example

Imagine you currently pay:

• €1,800 rent per month
• €500 regular savings per month

That demonstrates €2,300 per month of housing-related financial capacity before considering other commitments.

If you have also recently cleared a €300 monthly loan, that may provide additional evidence of your ability to manage future repayments.

This is only an illustration. Each lender assesses affordability differently, and your existing debts, expenditure and future mortgage repayment must be considered.

Key takeaway: Don’t focus only on “4 times salary”. Your repayment capacity can be just as important when applying for a mortgage.

🪙 4. How Much Deposit Do You Need for a New Build?

Most first-time buyers need a minimum 10% deposit.

Your deposit may come from a combination of:

• Personal savings
• Gifted deposit, where acceptable to the lender
• Inheritance
• Shares or other acceptable assets
• Help to Buy, if eligible

The lender will assess the source of your deposit and require appropriate evidence.

🏛️ 5. What Government Schemes Help First-Time Buyers Buy a New Build?

The main schemes worth investigating are:

🔑 Help to Buy

A tax refund that can help eligible first-time buyers with the deposit for a qualifying new home.

🤝 First Home Scheme

A shared-equity scheme that can help bridge the gap between your deposit, mortgage and the price of an eligible new home.

🏘️ Local Authority Affordable Purchase

Eligible buyers can purchase certain local-authority affordable homes at a reduced price, with the local authority retaining an equity stake.

🏦 Local Authority Home Loan

A government-backed mortgage option for eligible applicants who cannot obtain sufficient mortgage finance from commercial lenders.

Important: These schemes have different rules and may not all apply to the same property or buyer.

🔑 6. How Does Help to Buy Work?

The Help to Buy (HTB) Scheme helps eligible first-time buyers with the deposit required to purchase or self-build a qualifying new home.

The enhanced scheme can provide up to €30,000, subject to the scheme rules. The maximum is the lowest of:

• €30,000
• 10% of the purchase price
• Qualifying Income Tax and DIRT paid during the relevant four-year period.

The enhanced scheme applies to qualifying purchases or self-builds through 31 December 2029.

🏡 Example

For a €400,000 new build:

• 10% deposit = €40,000
• Potential HTB = up to €30,000, if eligible
• Remaining deposit requirement = potentially €10,000

The actual HTB amount depends on your qualifying tax paid.

The property must meet Revenue’s requirements, including being a qualifying new home, and the purchase value must be no more than €500,000.

Check the official Help to Buy information from Revenue

🤝 7. How Does the First Home Scheme Work?

The First Home Scheme (FHS) is a shared-equity scheme designed to help eligible buyers who have a funding gap between their deposit, mortgage and the price of a qualifying new home.

The FHS can provide up to:

• 30% of the purchase price if you are not using Help to Buy
• 20% if you are using Help to Buy.

💡 Simple example

A new build costs €400,000.

You have:

• €40,000 deposit
• €300,000 mortgage

You have a €60,000 funding gap.

Subject to eligibility, the First Home Scheme may help bridge that gap.

⚠️ Important: FHS is not a grant

The First Home Scheme takes an equity share in your property.

There is no service charge for the first five years under the current structure, with service charges applying thereafter where applicable.

The amount needed to buy back the equity can change if the value of your property changes.

Check the official First Home Scheme

🏘️ 8. What Is the Local Authority Affordable Purchase Scheme?

The Local Authority Affordable Purchase Scheme helps eligible buyers purchase certain new homes offered through local authorities at an affordable price.

The local authority generally retains an equity stake linked to the discount provided.

Availability depends on the development and local authority area.

If you’re considering an affordable development, check the scheme rules before applying for a mortgage.

🏦 9. What Is the Local Authority Home Loan?

The Local Authority Home Loan is a government-backed mortgage option for eligible first-time buyers and Fresh Start applicants.

It can potentially be used for:

• New-build homes
• Second-hand homes
• Self-builds

Eligibility and lending criteria apply.

For buyers who cannot obtain sufficient finance from commercial lenders, it can be an alternative route worth investigating.

📑 10. What Documents Do You Need for a Mortgage?

Getting your paperwork ready early can speed up your mortgage application.

👔 PAYE applicants

Typically required:

• Salary certificate
• Recent payslips
• Six months’ bank statements
• ID
• Proof of address

💼 Self-employed applicants

Typically required:

• Accountant’s letter
• Two years’ accounts
• Form 11 / Notice of Assessment
• Business bank statements
• Personal bank statements
• ID
• Proof of address

Exact requirements vary between lenders.

💡 Mortgage tip

Avoid taking on new loans, missing repayments or making unexplained large transactions while your mortgage application is being assessed.

💸 11. What Other Costs Should You Budget For?

Your deposit is not your only purchasing cost.

Budget for:

• 🧾 Stamp duty
• ⚖️ Solicitor’s fees
• 🏠 Mortgage valuation
• 🔍 Snagging inspection
• 🛡️ Mortgage protection
• 🏢 Management fees, where applicable
• 📋 Other legal and property-related outlays

A new build may also have additional costs depending on the development, property type and lender.

📝 12. New-Build Mortgage: The Simple Checklist

Before buying a new build, make sure you have:

• ✅ Checked your borrowing capacity
• ✅ Demonstrated repayment capacity
• ✅ Saved your deposit
• ✅ Reviewed your bank statements
• ✅ Obtained Approval in Principle
• ✅ Checked Help to Buy eligibility
• ✅ Checked First Home Scheme eligibility
• ✅ Found a solicitor
• ✅ Budgeted for purchase costs
• ✅ Checked the developer and development
• ✅ Understood the expected completion date

⭐ 13. How Can Park Financial Help First-Time Buyers?

Buying a new build involves more than simply finding a property.

You need to understand:

How much can I borrow?
Can I afford the repayments?
How much deposit do I need?
Can I use Help to Buy?
Could the First Home Scheme help?
Which mortgage lender is right for me?

This is where a mortgage broker in Ireland can help.

Park Financial provides its mortgage broker service free of charge to customers.

Its mortgage advisors can help you:

• 🔎 Assess your mortgage options
• 💶 Calculate your potential borrowing
• 📊 Understand repayment capacity
• 🏦 Compare mortgage lenders
• 📑 Prepare your application
• 🪙 Review your deposit position
• 🔑 Understand Help to Buy
• 🤝 Understand the First Home Scheme
• 📋 Manage the mortgage application
• 🛡️ Arrange mortgage protection
• 🏡 Progress towards mortgage drawdown

Park Financial also provides online mortgage calculators to help buyers estimate repayments, borrowing capacity and deposit requirements.

Start a free mortgage application with Park Financial

🚀 14. Ready to Buy a New Build in Ireland?

The best time to speak to a mortgage broker is before you reserve a property.

For most first-time buyers, the process is:

Income → Repayment Capacity → Deposit → Mortgage Approval → Government Schemes → New Build → Solicitor → Drawdown → Keys 🔑

The right mortgage depends on your income, financial commitments, deposit, repayment capacity and the property you want to buy.

Park Financial can help you understand your options and guide you through the mortgage process free of charge.

Apply online with Park Financial

📞 01 499 3000
📧 info@parkfinancial.ie

❓ New-Build Mortgage FAQs

1. 🏡 How much deposit do I need for a new build in Ireland?

Usually 10% as a first-time buyer. Help to Buy may help fund part of the deposit if you qualify.

2. 💶 How much can I borrow as a first-time buyer?

Generally up to 4 times your gross income, subject to the lender’s affordability assessment and lending criteria.

3. 📊 What is repayment capacity?

It is evidence that you can afford the mortgage repayments. Lenders may consider rent, savings, cleared loans and your overall financial behaviour.

4. 🔑 How much can I get through Help to Buy?

Up to €30,000, subject to the scheme limits and your qualifying tax paid. The property must meet Revenue’s requirements.

5. 🤝 Can I use Help to Buy and the First Home Scheme together?

Yes, if you meet both schemes’ requirements. Using HTB reduces the maximum FHS equity share from 30% to 20%.

6. 📑 What do I need for mortgage approval?

Proof of income, bank statements, ID, deposit evidence and details of your financial commitments. Self-employed applicants generally need additional accounts and tax documentation.

7. ⭐ Is Park Financial free for first-time buyers?

Yes. Park Financial’s mortgage broker service is free of charge to customers. Its mortgage advisors help first-time buyers compare options and navigate the mortgage application process.

🏡 Your Next Step

If you’re looking for a first-time buyer mortgage for a new build in Ireland, getting mortgage-ready before you reserve a property can save time and prevent disappointment.

Speak to Park Financial for free mortgage advice and find out how much you may be able to borrow.

Get your free mortgage advice from Park Financial

Information is for general guidance only. Government schemes, lender criteria, mortgage rates and property price limits can change. Eligibility is assessed by the relevant scheme provider and mortgage lender. Your home is at risk if you do not keep up payments on a mortgage or other loan secured on it.

Park Financial Services Limited trading as Park Financial is regulated by the Central Bank of Ireland.