There is no universal answer: it depends on your deposit, your income, how long you'll stay, and the rent-versus-repayment gap where you're looking. A useful starting point is to compare your current rent with the mortgage repayment on a home you could actually afford, then factor in the upfront cash to buy (deposit, stamp duty, fees) and the ongoing owner costs (LPT, insurance, maintenance). Ask Truehome to work both figures out for your numbers.
If your rent is high, it is natural to wonder whether you are "paying someone else's mortgage." Maybe. But a fair comparison is more than rent versus repayment, and buying is not automatically the better deal. Here is how to think about it honestly.
First, could you even buy? Two numbers
Buying has a gate that renting does not: the deposit and the borrowing limit.
- Deposit: a minimum of 10% of the price (Central Bank rules).
- Borrowing: up to 4 times income as a first-time buyer, 3.5 times as a mover.
Together these set a realistic price ceiling. For example, a first-time buyer on €55,000 can borrow up to about €220,000 and needs roughly €22,000+ as a deposit, pointing to homes around the €240,000 mark. Ask Truehome "what could I afford on €55k?" and it will work the exact figures, including the deposit and fees.
The real comparison (not just rent vs repayment)
Renting and buying each have costs the other does not. Compare like for like:
Buying: - Monthly mortgage repayment (compare this to your rent). Ask Truehome for the repayment on a home in your range. - Upfront cash you don't get back: stamp duty (1% up to €1m), solicitor, valuation, survey, registration, typically a few percent of the price on top of the deposit. - Ongoing owner costs: Local Property Tax, buildings insurance, maintenance, and management/service charges if it's an apartment. - You build equity as you repay, and you have security: no landlord can end your tenancy.
Renting: - Rent, with no equity at the end, but no deposit-sized outlay, no transaction costs, and no maintenance bills. - Flexibility to move easily, which matters if your plans might change.
When buying tends to win, and when renting does
- Buying tends to make sense when you'll stay put for several years (long enough to absorb the upfront costs), the repayment is comparable to or below local rent, and you have the deposit without stretching dangerously thin.
- Renting can be the better call when you might move within a couple of years, you don't yet have the deposit, or buying would leave you with no financial cushion. The transaction costs of buying and selling are real, so a short stay rarely pays.
Two things not to forget
- Rates can change. On a variable rate your repayment can rise; even a 0.25% move is real money (ask Truehome to show the impact). See the mortgage-rates guide.
- Owning ties up cash and flexibility. Selling later has its own costs and takes time. That security is a feature for some and a constraint for others.
How to work it out with Truehome
You don't have to guess. In chat you can ask: - "What could I afford on my income?" (deposit, borrowing limit, price ceiling) - "What would the monthly repayment be on a €X home?" (compare it to your rent) - "What does buying actually cost upfront?" (stamp duty, deposit, fees)
Put your rent beside that repayment, add the upfront and ongoing costs, and weigh it against how long you plan to stay. That is the honest comparison.
This guide is general information, not financial advice. Figures and rules change, so confirm the current position with a lender, a regulated mortgage broker or the CCPC.
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