So you are in the market for a new home and you may be wondering how much you will need to start saving.

Most people are aware that they will need to do some careful financial planning and saving to achieve that all important deposit and they may begin to look at property websites to get a sense of property prices in the area they want to live in.

However, there are other fees and charges associated with purchasing a home and they can add up. You may not be aware of all of these costs as a first time buyer so avoid a potential financial headache with our guide to the costs that you may not expect.

MortgageOne can help in planning any home purchase, we can offer our expert insight into obtaining a mortgage as well as arranging insurance cover for your new property to simplify the whole process and get you into your new home.

Central Bank lending rules around loan to value mean that you will need to save at least 10% of the purchase price of your home as a deposit. That rises to 30% if you are considering investing in property with a buy to let mortgage.

The Help to Buy Scheme is one Government scheme aimed at first time buyers which is specifically intended to help with saving towards a deposit.

Stamp duty is a tax you pay to Revenue on buying a property when purchasing a home in Ireland. 

The amount of stamp duty you pay on a residential property is based on the purchase price of the property with 1% of the purchase price due on properties up to €1 million, and 2% on any excess over €1 million.

If you wish to buy a new home, the stamp duty due is the value of the home minus the VAT which is 13.5% of the purchase price on a new home.

You will need a solicitor to handle the conveyancing of your new home. The solicitor will deal with the legal aspects of transferring ownership of the property.

Solicitors may charge a flat fee or charge a percentage of the property’s purchase price and will include a charge for the solicitor’s time as well as any land registry fees or title search required.

Land registry fees can be as much as €800, depending on the price of the property, although it may be a little less than this for an average priced home. You may pay a €2,000 to €3,000 fee to the solicitor if a flat fee is charged.

Getting a survey done is not a legal requirement when purchasing a property but your mortgage lender may require it. 

In any case a survey is worthwhile especially if you are purchasing an older property in case there are structural defects or damage, damp or dry rot, subsidence etc.

You can expect to pay at least €500 for a survey but it may be money well spent to avoid a shock later after you have purchased the property and find that you will need to get expensive renovations carried out.

Your lender is likely to require a valuation report, sometimes known as a bank valuation, on any prospective property that you will require a mortgage to purchase. This is to ensure that the value of the property is in line with the purchase price.

The valuation report is likely to cost in the region of €200 and your lender may have a panel of chartered valuers to choose from.

Local property tax is due on the 1st of November each year on all residential properties in Ireland. The amount of LPT you need to pay will depend on the market value of your property.

The market value of your property will fall into one of the valuation bands which determines how much LPT is due. For example houses worth between €350,001 and €437,500 are in Band 4 and will incur LPT of €405 per year.

Mortgage lenders are legally obliged to ensure that there is mortgage protection in place before you draw down your mortgage in almost all cases.

Mortgage protection insurance is a type of financial protection which will ensure that the balance of your mortgage is paid off if you, or either you or your spouse in the case of joint mortgage protection, die before the balance of the mortgage is cleared.

Prices for mortgage protection insurance can vary as a number of personal factors such as your age and health, as well as the mortgage amount, will determine the premium you will pay. 

For example a 35 year old non-smoker without health issues borrowing €400,000 over 35 years could expect to pay between €25 and €35 approximately per month depending on the insurer.

There is no legal obligation to have home insurance but it will offer invaluable protection in the event that your home, or its contents, were damaged in a fire, storm, or theft.

In any case, many lenders will require you to have buildings cover in place at a minimum before you can draw down your mortgage. Buildings cover is protection for the structure of your home such as the roof, walls, windows etc.

It is also strongly advised to have home contents insurance also to avoid unexpected expenses should your belongings be damaged or lost  in a fire, storm, or a break in.

Again, costs for home insurance vary depending on your property and location, but a 3 bed semi in Cork City, with a €200,000 rebuild cost, would cost in the region of €550 per year to insure.

How to save on home buying costs

There may be no way around some of these costs but MortgageOne has a dedicated, specialist team who can help you with applying for your mortgage and getting the best rates on the market to save on those monthly repayments.

Use our mortgage calculator to see how much you could borrow based on your income and deposit and get the best rates on your mortgage. 

MortgageOne can also find you the best insurance prices for mortgage protection and home insurance. Our insurance advisors can get you great cover and find you tailored solutions for your specific needs for total peace of mind.

Contact us today

You can use our mortgage calculator or arrange a consultation with a mortgage advisor and a qualified expert will find you the best rates and guide you through your mortgage application to save you time and money.

We can also get you the best quotes on mortgage protection and home insurance to make the process even more seamless. We have been finding client focussed solutions as an independent business for over 80 years so we have a proven track record.

Give us a call or leave your details online and you can speak to an independent mortgage or insurance advisor with no obligation today.