Editor’s note: First published July 2019 | Refreshed October 2025 with updated deposit limits, €400 k CAT threshold, and mortgage-protection guidance for first-time buyers in Ireland.
10-second summary: Saving the deposit is still the hardest bit. Move home if you can, use the €3 k-per-parent gift exemption, and sort your Mortgage Protection early — especially if you’ve any health issues. You don’t have to buy it from your bank.
There are certain milestones in life that prove you’re (sort of) an adult — even if it doesn’t always feel that way.
Meeting someone you’ll happily sit through Love Island with.
Arguing over wet towels.
Finding your first grey hair.
And having serious chats in the pub about personal finances and babies that may lead to:
Very strongly considering applying for a mortgage.
It’s a big step — whether you’re going solo or with some poor soul you’ve somehow convinced to stick around. It’s exciting until the reality of deposits and the bonkers Irish housing market hits. For many of us moving back in with our folks has become Step One on the ladder.
Fun Fact: I’m 47 and had to move back in with my parents when we were moving house (a teenage daughter and twin tween sons had to share a room – it was hell but you have to be thankful, we were on the streets otherwise)
1. Consider your affordability
Despite all the jargon, getting a mortgage as a first-time buyer is simpler than it sounds. Most lenders will let you borrow up to 3.5 times your annual income (combined if you’re buying with someone) and you’ll need a 10 percent deposit.
So if Sarah earns €45k and Dave earns €35k, their combined mortgage limit is around €280k. To buy a home at that price they’ll need a €28k deposit — a serious wedge of spondoolies but doable with a plan (and fewer takeaways 😅).
2. Tap your rellies for a gift (if you can)
Some lucky souls get help from family. If your parents can give you a gift toward the deposit, your lender will need a gift letter stating the amount and that it’s not a loan.
Tax-wise, each parent can gift you €3,000 a year without triggering any tax under the Small Gift Exemption. Over your lifetime you can receive up to €400,000 tax-free from your parents (Revenue Group A threshold, October 2024 update). Anything above that is taxed at 33 percent.
So take smaller gifts over a few years if possible — better than handing a third to the taxman.
You can read more about it on Revenue.ie or see our guide on gift and inheritance tax thresholds.
3. Move home with yer Ma (if you must)
Saving a deposit is still the toughest part of buying a home. With rents sky-high, moving home can make a huge difference. It’s not ideal — your parents thought they’d done their rearing — but it’s temporary and effective.
- Be grateful and help out — not everyone has the option.
- It’s their house, their rules — keep them sweet.
- Buy your own basics (bog roll included).
- Chip in where you can and keep saving.
4. Talk to a mortgage advisor early
Whether you go through your bank or a broker, get advice early.
A broker can compare all the lenders for you and help you avoid nasty surprises later. Show proof you can handle rent and outgoings, clear debts where possible, and don’t book a €3k Ibiza blow-out the month before your application.
5. Don’t leave your insurance to the last minute
Once you’re close to mortgage approval, your lender will ask for proof of Mortgage Protection — a life-insurance policy that clears your loan if you die during the term. It’s a legal requirement for most home buyers.
If you’ve any health issues, start the process early. It can take time for insurers to review medical reports, and leaving it too late could delay drawdown or even risk your deposit if you’ve already signed contracts without a subject-to-loan clause.
You’re free to buy Mortgage Protection from any provider — not just your bank. Shopping around usually gets you a better deal and more flexibility. Our complete guide to Mortgage Protection explains all your options.
🏠 Ready to buy but not sure about your cover?
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Over to you…
Even if you’re still saving, it’s worth knowing how the insurance side works so you’re not scrambling when your mortgage offer lands.
Complete this short questionnaire and I’ll make a recommendation on the right level of cover for your stage in life.
Or if you want to chat first, schedule a callback here.
Nick McGowan
lion.ie | making life insurance easier.
Information correct as of October 2025. General information only — not financial advice.