The 10% minimum, and where it comes from
The Central Bank of Ireland sets the rules that every mortgage lender has to follow. One of them is a loan-to-value limit: a mortgage can cover at most 90% of a home's price, so you need a deposit of at least 10%. This is the same 10% minimum for first-time buyers and for second or subsequent buyers.
So on a €350,000 home, the minimum deposit is €35,000. On a €450,000 home it's €45,000. The deposit is a percentage of the purchase price, not of the mortgage.
Deposit is only half the picture
Having the 10% deposit doesn't automatically mean you can buy at that price. The other Central Bank rule is a loan-to-income limit: first-time buyers can borrow up to 4 times gross income, and second or subsequent buyers up to 3.5 times. Whichever of the two rules is more limiting, the deposit or the income cap, sets the ceiling on what you can pay.
It's worth working both out together. The borrowing calculator applies both rules at once and shows the maximum price they allow for your income and savings.
What counts toward your deposit
- Your own savings. The core of it. Lenders like to see a track record of regular saving, because it also shows you can handle the repayments.
- A gift. A genuine gift, usually from close family, can make up part or all of your deposit. It has to be a real gift and not a loan, and the lender will ask for a signed letter confirming that. Large gifts can have tax implications, so it's worth checking.
- The Help to Buy refund. On a qualifying new build, the Help to Buy scheme pays up to €30,000 of income tax and DIRT you've already paid straight toward your deposit. It can form part of the 10%, though you'll usually still need some of your own savings alongside it.
What the First Home Scheme does (and doesn't) do here
The First Home Scheme is sometimes lumped in with deposits, but it works differently. It doesn't reduce the deposit you need. Instead, after your deposit and mortgage, it can bridge a remaining gap between what you can raise and the price of a new home, in exchange for the State taking an equity share. You still need your 10% deposit first.
A worked example
Say you're a first-time buyer couple with a combined income of €90,000 and you're buying a €350,000 new build. Your income allows a mortgage of up to €360,000 (4 times income), which is more than 90% of the price, so here the deposit rule is what binds. You need €35,000 (10%). If you qualify for the full €30,000 Help to Buy refund, you'd need only €5,000 of your own savings toward the deposit, plus stamp duty of €3,500 and your fees.
Frequently asked questions
What is the minimum mortgage deposit in Ireland?
10% of the purchase price, for both first-time buyers and second or subsequent buyers. A mortgage can cover at most 90% of the price.
Does Help to Buy count toward my deposit?
Yes, on a qualifying new build. The refund of up to €30,000 is paid toward your deposit, though you'll usually still need some of your own savings on top.
Can I use a gift toward my deposit?
Yes. A genuine gift, typically from close family, is accepted as long as it's not a loan. You'll need a signed gift letter, and large gifts can have tax considerations worth checking.