Quick answer: First-time buyers need a minimum 10% deposit under Central Bank rules. Since January 2023, second and subsequent buyers also need only 10% (the same as FTBs). The key difference is the income multiple: FTBs can borrow 4× income; SSBs are capped at 3.5×. Most lenders also want to see 6+ months of consistent saving history.
How Much Deposit Do You Need?
The Central Bank of Ireland sets minimum deposit requirements:
| Buyer Type | Minimum Deposit (LTV Rule) |
|---|---|
| First-time buyers (FTBs) | 10% of purchase price |
| Second and subsequent buyers (SSBs) | 10% of purchase price |
Since January 2023: the Central Bank removed the separate 80% LTV cap for SSBs. Both FTBs and SSBs can now borrow up to 90% LTV. The income multiple cap (3.5× for SSBs vs 4× for FTBs) is the key remaining difference. Source: Central Bank — targeted changes to mortgage measures (Nov 2022).
Examples:
| Purchase Price | FTB Deposit (10%) | SSB Deposit (10%) |
|---|---|---|
| €300,000 | €30,000 | €30,000 |
| €400,000 | €40,000 | €40,000 |
| €500,000 | €50,000 | €50,000 |
These are minimums — some lenders may require more in certain circumstances.
The Income Multiple Rule
Your mortgage size is also capped by your income. Under Central Bank rules:
| Buyer Type | Maximum Mortgage |
|---|---|
| First-time buyers | 4× gross annual income |
| Second and subsequent buyers | 3.5× gross annual income |
Your deposit must cover the gap between the maximum mortgage and the purchase price. In practice, you may need a larger deposit than the 10% minimum if the income multiple caps your borrowing below 90% of the property value.
Example: - Purchase price: €380,000 - Max mortgage at 4× income (€75,000): €300,000 - 90% LTV would allow: €342,000 mortgage - But income cap means your mortgage is limited to €300,000 - Required deposit: €380,000 − €300,000 = €80,000 (21%)
Always check both the LTV rule and the income multiple — the binding constraint is whichever requires the larger deposit.
What Counts as Your Deposit?
Acceptable sources: - Personal savings in current or savings accounts - Help to Buy (HTB) tax refund — up to €30,000 for eligible FTBs buying new builds - First Home Scheme (equity top-up, not cash — bridging the gap in affordability) - Gifted deposit (from a family member — see below) - Inheritance
What lenders assess: Lenders want to see a savings history — typically 6 months of consistent, regular saving that matches your claimed savings capacity. Lump sums received close to the application date (other than from the HTB scheme) may need explanation.
Gifted Deposits
A family member (commonly a parent) can gift you money toward your deposit. Key points:
- The gift must be documented in a letter from the donor confirming it is a gift, not a loan
- Some lenders require confirmation the donor is not expecting repayment
- Large gifts may have Capital Acquisitions Tax (CAT) implications — children can receive up to €400,000 from parents tax-free (over a lifetime); amounts above this threshold trigger CAT
- Consult a tax adviser if the gift is large
Help to Buy and the Deposit
The Help to Buy scheme refunds up to €30,000 of income tax and DIRT to first-time buyers of new builds. This money is typically applied directly as part of your deposit, effectively reducing how much cash you need to save personally.
For a €400,000 new build, the Help to Buy contribution of €30,000 means you only need to save €10,000 yourself to meet the 10% deposit requirement — assuming your income supports the €360,000 mortgage.
Saving Strategies
How long will it take to save?
| Monthly Saving | Time to Save €40,000 |
|---|---|
| €500/month | 6.7 years |
| €1,000/month | 3.3 years |
| €1,500/month | 2.2 years |
| €2,000/month | 1.7 years |
Practical tips: - Open a dedicated savings account — a separate account makes progress visible and reduces the temptation to dip in - Automate a transfer on payday — "pay yourself first" - Track rental costs vs long-term ownership cost — some buyers find overpaying rent difficult to reconcile with slow saving - Consider the First Home Scheme if your savings lag behind price growth — it can bridge an affordability gap
Key Points
- The minimum deposit is 10% of the purchase price for both FTBs and SSBs (since January 2023).
- Your income may require a larger deposit than the minimum — check the 4× (FTB) or 3.5× (SSB) income cap.
- Help to Buy (up to €30,000 for new builds) reduces the cash you need to save.
- Lenders want 6+ months of savings history, not just a lump sum before application.
- Buying costs (stamp duty, solicitor fees, survey — circa 2–3% of purchase price) must also be saved separately.
Common Questions
Q: Can my parents give me money for a deposit? Yes — a gifted deposit from a parent is acceptable to most Irish lenders, as long as you provide a letter confirming it is a gift and not a loan. Gifts up to €400,000 from parents are within the Capital Acquisitions Tax lifetime threshold, so no tax would typically apply.
Q: Does DIRT on savings affect my deposit? DIRT (Deposit Interest Retention Tax) is a 33% tax on interest earned in savings accounts in Ireland. On most deposit accounts, interest rates are low, so the DIRT impact is modest. However, if you are a first-time buyer eligible for Help to Buy, note that DIRT paid in the previous 4 years counts toward your potential HTB refund.
Q: Can I use a first-time buyer discount on a Council house for a deposit? If you qualify for an affordable housing scheme (such as those operated by local authorities), the discount may substitute for a portion of the deposit. The specifics vary by scheme — contact your local authority directly.