The Mortgage Process in Ireland: A Step-by-Step Guide to Getting a Mortgage

There has been quite a shake-up in Ireland’s mortgage market recently with more competition giving borrowers more choice than ever. The flip side of this increase in choice is that the actual process of planning for and getting the right mortgage can seem even more complex.

At Heritage Credit Union, we value clarity and transparency. Whether you’re a first-time buyer, trading up, or simply trying to understand how it all works, the purpose of this guide is to take you through each stage of the mortgage process in Ireland - step by step.

Understanding Ireland’s Mortgage Rules

Before you start your mortgage journey, you should familiarise yourself with the Central Bank of Ireland’s lending rules. These rules may seem like a pain but they are there to promote responsible lending and borrowing.

As Financial Advisor, Ken Mason, puts it:

“It’s no secret that many see the Central Bank rules on borrowing as punitive especially given the lending practices of the past. The rules limit our ability to borrow money, but for good reason - they exist to protect us from ourselves and to keep the banks in check by ensuring that we are unable to over-extend ourselves financially.”

The Central Bank rules has set limits on how much you can borrow and how much of a deposit you’ll need. Two key measures form the foundation of these rules:

• Loan-to-Income (LTI)
• Loan-to-Value (LTV)

Loan-to-Income (LTI)

Your Loan-to-Income ratio determines how much you can borrow relative to your annual earnings. There are different rules for first time buyers versus other buyers:

• First-time buyers: can generally borrow up to 4 times their gross annual income.
• Second-time and subsequent buyers: borrowing capacity is usually capped at 3.5 times their income.

These ratios are recommended maximums rather than guarantees. Lenders will still assess your income, outgoings, and overall financial stability before deciding how much you can comfortably afford. It’s also worth noting that lenders tend to have a small amount of flexibility each year to approve mortgages above these limits in certain circumstances so it’s always worth having a chat with a mortgage specialist. At Heritage, our lending team is always happy to help - you can get in touch here.

Loan-to-Value (LTV)

Whereas LTI tells you how much you can borrow, the Loan-to-Value ratio tells you how much of a deposit you’ll need.

For owner-occupied homes, the standard requirement is a minimum 10% deposit, meaning you can borrow up to 90% of the property’s value (90% LTV). For example, if the home you want to buy costs €250,000, you’ll need a deposit of at least €25,000, and your lender may cover the remaining €225,000.

The bar is higher for buy-to-let properties for which you’ll need at least a 30% deposit (70% LTV).

First-time buyers can also benefit from government supports like the Help to Buy Scheme (HTB) or First Home Scheme (FHS) - both designed to help bridge that deposit gap. More on those later.

Exemptions:

The Central Bank allows for a certain amount of exemptions to these rules each year. The breakdown of these allowed exemptions is as follows:

• 15 per cent of first-time-buyer lending can take place above the limits.
• 15 per cent of second and subsequent buyer lending can take place above the limits.
• 10 per cent of buy-to-let-buyer lending can take place above the limits.

Due to the extremely high demand for these exemptions, most of them tend to be gone by the middle of the calendar year. When it comes to successfully obtaining an exemption, two of the key determining factors are credit worthiness and the quality of your mortgage application.

Step-by-Step Guide to Getting a Mortgage

Step 1: Practice Good Financial Habits

No matter how far down the road a mortgage application may seem, the most important thing you can do to make the process as smooth as possible when the time does come is to practice good financial habits.

Mortgage lenders are typically just as interested in how you manage your income as they are in your income itself. Typically, lenders assess a track record of prudent financial behaviour over a minimum six-month period.

Financial advisor, Nick Charalambous, explains:

“Good financial habits are crucial when saving for a mortgage... Managing your finances and focusing on saving will better prepare you to meet the financial requirements of a mortgage. These disciplined habits boost your savings and show lenders your financial stability and repayment capacity needed for homeownership.”

Some healthy financial habits to showcase that you’re financially responsible and can comfortably manage monthly repayments include:

• Save regularly: Setting up a standing order into a savings account demonstrates financial discipline and a clear ability to manage your income.
• Avoid missed payments. Even one missed loan or utility payment can raise red flags. Make sure all direct debits and standing orders are covered each month.
• Stay out of your overdraft. Using your overdraft occasionally isn’t a dealbreaker, but living in it permanently can signal financial strain. Try to build a small buffer in your current account instead.
• Keep credit card balances low. Aim to pay off credit cards in full each month if you can. High or maxed-out balances suggest you’re overextended.
• Pay your rent by bank transfer. This gives you a clear record of regular, on-time payments - something lenders love to see, especially for first-time buyers.
• Check your credit report. You can request your report for free from the Central Credit Register to make sure everything is in order before you apply.

Don’t let any of this put you off or make you feel that your situation isn’t good enough. At Heritage Credit Union, we take a personal approach to every application. We look beyond the numbers to understand your full financial picture - your income, your commitments, and your goals. Our local lending team is here to help guide you through the process, answer questions, and find solutions that work for you.

Step 2: Maintain Stable Employment

A steady and reliable income is one of the biggest factors lenders look at when it comes to mortgage approvals. They want to be sure that your earnings are consistent and can comfortably cover your mortgage repayments over time.

That’s why, ideally, you should be in the same job (or at least with the same employer) for six months or more before applying. This gives lenders confidence that your income is dependable. If you’ve recently changed roles, it’s often best to wait a little while before applying, especially if you’ve switched to a new sector or started a probationary period.

Similarly, if you’re thinking about making a major career move, it’s worth holding off until after your mortgage has been approved and drawn down. Once the ink is dry on your mortgage documents, you’ll have more flexibility to make those changes without affecting your application.

Understanding “Allowable Income”

One of the trickier parts of the process is that not all income is treated equally by every lender. What one lender counts as income, another might partially discount or ignore altogether. That’s why two people on similar salaries can sometimes get very different borrowing limits.

Here’s how the main income types are usually treated:

• Base Salary: Always fully accepted - this forms the core of your borrowing potential.
• Overtime: Some lenders are cautious here, accepting anywhere from 0% up to 90%, depending on how regular it is.
• Bonuses: Policies vary - some lenders will only count up to 20% of your base salary, while others may include up to 100%, especially if you can show a consistent pattern over time.
• Commission: Typically, you’ll need at least two to three years of commission history to have it considered in full.
• Shift Allowances: These can vary widely, so how they’re treated often depends on your industry and how your contract is structured.

Step 3: Build Your Deposit

Saving for a deposit takes time, consistency, and discipline. With a bit of structure and planning, it becomes much less daunting and more achievable. We’ve already mentioned regular savings but it’s worth re-iterating - setting up a regular savings account is one of the easiest and most effective ways to stay on track. By putting money aside automatically each month, you’re demonstrating financial discipline as well as building up your deposit - 2 birds with 1 stone.

We’ve already spoken about how most borrowers in Ireland will need at least a 10% deposit to buy a home. It’s also worth remembering that a larger deposit can unlock better interest rates, reduce your monthly repayments, and ultimately save you money over the lifetime of the mortgage.

Step 4: Work Out Your Budget

Having a clear budget from an early stage helps you focus your search and avoid falling in love with a property that’s outside your price range. A good place to start is by using a mortgage calculator to get a ballpark estimate of your potential monthly repayments.

For more bespoke budget advice on your specific situation, our Lending Manager, Niall, and the Heritage CU lending team are always willing to help out our members - feel free to reach out for a chat. We’ll take the time to understand your income, expenses, and goals so we can give you tailored advice on what’s realistic and sustainable - not just what looks good on paper.

When putting your budget together, make sure to include:

• Your deposit size: How much you’ve already saved (and whether you might qualify for a government scheme to boost it).
• Monthly repayments: What your mortgage repayments will look like based on different rates and terms. We can help you with this part!
• Additional costs: Don’t forget about extras like stamp duty, legal fees, property valuation, home insurance, life cover, and moving costs which can all add up quickly.

Step 5: Consider Government Schemes

There are a bunch of government schemes designed to help first time buyers make that first step onto the property ladder a little easier. These can make a real difference to your budget by reducing the amount you need to borrow or helping you reach that all-important deposit faster.

Here’s a quick overview of the main supports available:

• Help to Buy (HTB) Scheme: Offers a tax rebate of up to €30,000 (or 10% of the property price) to help with your deposit. It’s available for new-build homes only, but it’s one of the most popular supports for first-time buyers in Ireland.
• First Home Scheme (FHS): A state-backed shared equity scheme that can bridge the gap between your deposit, mortgage, and the property price. It can cover up to 30% of the property’s value (or 20% if you’re also using Help to Buy). In return, the state takes a small equity share in your home, which you can buy out later if you wish.
• Local Authority Affordable Purchase Scheme: This scheme offers discounted new homes for buyers on moderate incomes. The local authority retains an equity share equivalent to the discount provided — again, something you can choose to repay in the future.

If you’re buying a second-hand home, the supports are more limited but there are still some useful options. For example, the Vacant Property Refurbishment Grant can provide funding for upgrading an empty or derelict home. You read more about financing home improvements in our Financing Home Improvements in Ireland guide.

Step 6: Gather Your Documents Early

Not exactly the most exciting step in the process but getting your paperwork in order early is a smart move. Having all your documents ready means less back-and-forth later, fewer delays, and a much smoother approval process once you find your dream home.

Most lenders will look for a similar set of documents to get the ball rolling including (but not limited to):

• Proof of ID, address, and PPSN: Your passport or driver’s licence, a recent utility bill, and something showing your PPS number (like a payslip or Revenue document).
• Proof of income: This could be your most recent payslips, your Employment Detail Summary from Revenue, or certified accounts if you’re self-employed.
• Bank and credit card statements: Usually around six months’ worth, showing how you manage your day-to-day finances, savings, and repayments.
• Proof of savings and rent payments: Statements or transfer records that clearly show your savings pattern and any rent you’ve been paying regularly.

Here at Heritage we understand that not everyone fits neatly into the same box. Maybe you’ve recently gone self-employed, have income from multiple sources, or just don’t have the same paper trail as someone in a traditional job. Don’t let that dissuade you - we take a personal, flexible approach, looking at your full financial picture, not just a checklist.

Step 7: Compare Mortgage Options

In recent years, a number of new players have entered the mortgage market in Ireland. You’ve got the main banks as well as a whole host of non bank lenders - offering consumers more choice than ever.

Additionally, the Credit Union (Amendment) Act 2023 was passed to transform the credit union sector and permit all credit unions to offer services like mortgages. Even more recently, in September 2025 new lending limits for Credit Unions came into effect in Ireland - one of which was an increase in the lending limit for home loans (mortgages) to 30%. With these recent updates, Credit Unions have become a genuine option for existing or prospective members who are shopping around for a mortgage.

When you reach the stage of choosing a mortgage, it’s natural to focus on interest rates and, of course, they are an important factor to consider. But it’s also worth remembering that the right mortgage is about more than just the rate. Things like repayment terms, flexibility, and the level of support you’ll get along the way are equally important.

At Heritage Credit Union, we keep things simple and transparent so you know exactly what you’re getting. Our mortgage options include:

• Competitive variable rate: 4% per annum (Typical APR 4.07%)
• Flexible borrowing amounts: From €40,000 to €600,000, with terms of up to 35 years
• No hidden fees or charges
• Local decision-making: Everything is processed right here in Dublin
• A personal approach: We take time to understand your financial situation as a whole, not just what’s on paper

The main thing is to compare like for like. When drafting your shortlist of possible mortgage providers and products, you should consider interest rates but also repayment terms, any associated fees, and the quality of support you’ll get if questions arise later.

Step 8: Get a Mortgage Approval in Principle (AIP)

Okay so you’ve made your shortlist of lenders, now we’re about to get the ball rolling! Before you start arranging viewings or making offers, it’s a good idea to get an Approval in Principle (AIP) in place. This is essentially a preliminary approval from your lender confirming how much you’re likely to be able to borrow based on your income, savings, and financial history.

Whilst an AIP isn’t a formal mortgage offer, it gives you a realistic idea of your price range and helps you act quickly when you find the right property. It also shows estate agents and sellers that you’re a serious buyer, which can make a big difference in a competitive market. The first step to getting your AIP from Heritage Credit Union is to submit a Mortgage Enquiry Form.

Most AIPs are valid for six to twelve months, depending on the lender. If your house search takes a little longer, it’s usually straightforward to renew. Bear in mind though that your final interest rate is confirmed only when the mortgage is drawn down so it may change slightly depending on market conditions at the time.

Step 9: Start House-Hunting

Now the real fun (or stress, depending on your outlook) really begins! With your Approval in Principle in hand, you now know exactly what you can afford, so you can start viewing homes that fit your budget.

As you start viewing properties, keep your practical checklist in mind - things like location, commute time, BER rating, nearby amenities, and any renovation work that might be needed. It’s easy to get caught up in the excitement of a viewing, but staying focused on what really matters to you will make the decision easier when the right home comes along.

At this point, particularly if you’re buying a “fixer upper”, it can be a good time to hire a qualified surveyor to conduct a professional building survey to identify any structural issues or required repairs before you make an offer.

It’s also a good idea to engage a property solicitor around this time. They’ll handle the legal aspects of the purchase like reviewing contracts, checking title deeds, and managing the transfer of ownership. Having someone you trust lined up from the start helps keep things moving smoothly and can give you peace of mind from this point onwards.

Step 10: Make Your Full Application

Once your offer on a property has been accepted - congratulations, you’re nearly there! At this stage, you’ll generally pay a refundable booking deposit to secure the deal. The seller’s solicitor will then issue the contract for sale to your own solicitor, who will review it on your behalf and flag any legal issues that need to be addressed before you sign.

Now is also the time to move from your AIP to a full mortgage application. This is where your lender formally assesses all aspects of your finances and the property itself before issuing a final loan offer. You may be asked to provide updated documents such as recent payslips or bank statements if some time has passed since your AIP.

Your lender will also arrange for a professional property valuation. This confirms the home’s market value and ensures that the amount you’re borrowing is appropriate for the property.

Step 11: Receive Your Formal Mortgage Offer

After your full application and property valuation are complete, your lender will issue a formal mortgage offer. This is the official confirmation that your loan has been approved. It outlines all the key details of your mortgage, including the loan amount, interest rate, repayment term, and any specific conditions that need to be met before drawdown.

Once you and your solicitor are satisfied, it’s time to sign the loan offer documents and return them to your lender.

Step 12: Finalise and Draw Down Your Mortgage

Once all contracts are signed and any remaining conditions from your lender have been met, your mortgage funds will be released (or “drawn down”) to your solicitor.

Your solicitor will then transfer the funds to the seller’s solicitor, completing the purchase. At that point, all the legal paperwork is finalised, the property officially becomes yours and you’ll finally get the keys to your new home.

It’s a big milestone, and one that comes with a well-earned sense of relief. All the saving, paperwork, and planning has paid off, and you can start focusing on the real fun - turning your new house into a home!

Final Thoughts

Buying a home is one of life’s biggest financial decisions, but it doesn’t have to be overwhelming. With the right preparation, clear information, and support from a trusted lender, the process can be smoother than you think.

At Heritage Credit Union, we take a personal approach to every mortgage application. Our goal isn’t just to approve a loan - it’s to make sure you’re confident, informed, and supported every step of the way.

If you’re thinking about getting a mortgage, or just want to explore your options, talk to us today. Drop into any of our 12 Dublin branches or give us a call to get started.