The Complete New Homes
Guide for First-Time Buyers
Buying a New Home in a Residential Development in Ireland

Sherry FitzGerald
Supporting you every step of the way
Buying your first home is an exciting time and understanding the huge amount of new
information you need to know can feel overwhelming. To navigate your way through the newhome buying process and find the right property, you need an expert in your corner, guiding
you every step of the way. For more than 30 years, we have been helping first-time buyers allover Ireland and we have more experience than any other agent in the country.
With Sherry FitzGerald by your side, you’ll benefit from this long-established experience andknowledge, giving you peace-of-mind that you’re undertaking this journey with a genuine
expert. Our step-by-step handbook to buying your new home, written with new residential
developments in mind, brings you from mortgage preparation to moving in, and gives you
everything you need to know in one handy guide.

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1. Starting the process and understanding
what lies ahead
Buying a home is an exhilarating process but it can also be a complex and challenging one.
Perhaps the most complicated element of this process is how you will finance the purchase. If you areraising a mortgage, you will be required to have finance in place before placing a deposit. You may needto demonstrate proof-of-funds (like a mortgage approval letter), and a fully completed Help-to-Buy
incentive application where applicable. There are typically three ways to fund the buying of your home.
Three types of buyers – which one are you?
•Cash Buyer – you do not need a mortgage and you will be required to show proof of your ability topurchase in the form of a letter from your bank, accountant or solicitor•

Subject to Finance – like the majority of people, you need a mortgage to buy a property and you
will need to demonstrate mortgage approval from your bank, broker or accountant within the past
six months•

Subject to Sale – you have a property to sell and will be using the funds from the sale to buy
another property. When appropriate, ensure you advise the estate agent of the status of your own
sale. Keep in mind that when you buy a new home you need to sign an unconditional contract. The
new purchase cannot be subject to you selling your existing house4

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What is the Help-to-Buy incentive?
The Help-to-Buy incentive is a government initiative designed to help you, as a first-time buyer, with raising
the deposit needed to purchase a new house or apartment to live in as your home. Under the incentive, you
may receive a refund of Income Tax and Deposit Interest Retention Tax (DIRT) paid over the previous four tax
years. You might already know that DIRT is a form of tax on interest earned on bank accounts in Ireland andthis is where your refund will come from.
Keep in mind that the price of the house or apartment cannot be more than €500,000 for properties bought
after 1 January 2017. You must take out a mortgage on the property with a qualifying mortgage provider andthis loan can only be for the purchase of this specific property. You should also remember that the developer/
builder of the property must also be eligible and your estate agent can advise you on this.
Visit sherryfitz.ie and read our informative guide on the Help-to-buy Incentive scheme for first-time buyers.

How we can help
You can begin your search by contacting any of our Sherry FitzGerald offices and registering with us as a buyer orvisiting sherryfitz.ie. This free service ensures that you will be kept up-to-date on new developments coming to themarket that match your search criteria. And you’ll be the first to hear about upcoming releases too.
Also on sherryfitz.ie, you can use our online mortgage calculator to help you gauge how much of a deposit
is required for each new home. If the Help-to-Buy incentive is of interest, we can discuss it with you and evengo through the application process and confirm if your preferred development is eligible. We understand it’s
your first time through this process, and we are here to help.

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2. Getting mortgage readyIf you are like most people, you will need to apply for, and secure a mortgage in order to buy your new home.
Before you fall in love with any potential new home, you’ll have to be sure your finances are in place first.
An experienced mortgage broker can offer you so much at this stage. Getting that all-important mortgage
can be a tricky process so you need an informed advisor in your corner that is aware of all the pitfalls andobstacles you can run into.
You will be faced with many choices during this stage. Should I choose fixed or variable? How much can I
borrow? How long will it take me to pay off the loan? Your independent broker will advise you on each ofthese issues. In the meantime, it’s a good idea to start getting mortgage ready and putting yourself in a prime
position to secure that loan.

Questions to consider early in the mortgage process•

Are you in permanent/regular employment with a steady income? To obtain a mortgage you must havecompleted any probationary period and you should have at least six months (but preferably twelve
months) in continuous employment•

Can you demonstrate your ability to repay? You can do this by showing a strong savings history andstrong payment history on a monthly basis•

Do you have enough money set aside for the deposit, valuation and legal fees, and for furnishing theproperty? You will be required to have between 10% and 20% of the purchase price of the property you
intend on buying•

Can you show lenders evidence of savings which demonstrates solid financial planning on your part andan ability to manage money?

•

Have you started gathering the required documentation? This includes 3 months’ payslips, 6 months’
current account statements, 6 months’ savings bank account/Credit Union statements, 12 months’ loanaccount statements for all existing loans including existing mortgages and a recent P60

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How we can help
At Sherry FitzGerald Mortgages, we understand that securing your first mortgage is one of the biggest
financial decisions you will make and is a challenging, complex process. And to get the best deal possible,
you need an expert in your corner that you can count on at every step. We’ll guide you through the entire
process, shop around on your behalf and could save you thousands over the full term of your mortgage.
Get in touch with us today on 1850 3000 30 or email financialservices@sherryfitz.ie and give yourself thebest possible chance of getting the right mortgage for you. You can also visit sherryfitz.ie and read ourguide to ‘Getting mortgage ready’.

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3. Starting your search, identifying location
and requirements
Once you’ve started your search, it’s likely you already have set criteria in your mind. By now, you probably
know how many bedrooms you are looking for and the approximate area you’d like to live in. In the property
world, it’s often said that your new home is the right combination of what you want, what you can afford andwhat is on the market.
Whether you are looking for a detached house with a garden or a city apartment, try and imagine you andyour family living there. Are there mobility issues to be considered for you or your extended family? Is there
a possibility your family will grow in the coming years? Location is also a major issue and will be your chiefconsideration. There are a number of criteria you need to consider in this context.

Key location issues to consider
1.

2.

Distance to and from work and family –4.

amenities – make a note of how well-serviced

travelling to work every day or to visit loved

your new area is and stay updated on local

ones

school enrolment policies and similar important
issuesTransport and infrastructure – find out if thearea is well serviced by public transport and5.

keep notes of frequency and quality of services
3.

How safe is the neighbourhood – try and visit
areas at different times of the day or night toget a better idea

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Schools, hospitals, sports clubs and publicdecide how much time you want to spend

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Other local amenities – what are the shops,
supermarkets, restaurants, parks and pubs inthe area like?

How we can help
At sherryfitz.ie, we have all sorts of valuable resources which are available to you free-of-charge. For each of
our new residential developments, you will find our handy online mortgage calculator to work out how
much deposit you need, as well as detailed information about the Help-to-Buy incentive and how you canavail of it.
Our friendly staff are also on hand to answer any queries you might have at any of our offices nationwide.
Feel free to call in and discuss your requirements.

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94. Viewing show houses and working‘off-the-plans’
By now, you are constantly on the lookout for new home developments, typically launched throughout
the year on a phased basis. There are usually a variety of property types available within each phase.
The specifics of the launches are available in the weeks coming up to release, with pricing available atthe time of launch.
As many new homes are sold directly from the plans, it’s now time to view the show house. And as
you will not get to view the actual property you may end up living in, there are a number of key aspects
you need to consider when buying ‘off-the-plans’.

What to consider when buying ‘off-the-plans’
1.

Floor plans – keep in mind that the measurements of individual rooms may not be provided, only
the entire approximate size of the home in square feet/metres. This is done to avoid discrepancies
between measurements as each home is hand-built

2.

The development – as the developments are mid-build or may not yet be completed, you need tomake sure you are aware of your immediate surroundings. Speak with your agent and check how
many homes will be in your development, how long the build will last or the proposed completion
dates, and what amenities will be built to serve the community

3.

Orientation – this is the direction the rear of your home will face. South and west-facing gardens
tend to be most popular, as they get the sun for longer in the garden, in the afternoon and evening

4.

Parking – remember that each development and the homes within them can have different parking
arrangements, so if you are a motorist, make sure they suit your needs

5.

Management fees – some developments have management fees which cover maintenance, refuse
collection, insurance of common areas and in some cases, additional amenities like leisure services

6.

Social housing – bear in mind that up to 10% of all new residential developments will be allocatedto social housing. Each development will be different and you should confirm the most current
details with the agent

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How we can help
If there is anything that you are unsure of or a question you didn’t get the
chance to ask at a viewing, you can email newhomescustomerservice@
sherryfitz.ie and a member of our customer service or sales team will
be in touch with you very shortly. If you need to, we can also arrange aviewing by appointment for you if you miss the launch.
At Sherry FitzGerald, it’s our role to keep you fully informed as best we can.
Open viewings are usually held on Saturdays and Sundays throughout theyear (development depending), and you will find the times for these on
sherryfitz.ie. When you attend an open viewing, we’ll be there to answer
any questions you may have about the homes and the area.

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5. Choosing a property solicitor
You will need to appoint a solicitor to look after the conveyancing (legal formalities surrounding
the purchase of a property). Your solicitor communicates on your behalf with the builder’s solicitor
and is your point of contact for any queries you may have. Most importantly, you need to choose aproperty solicitor with knowledge and experience who understands your needs. By and large, theprocess is standard throughout the country, but the help and expertise of a proactive, engaged andexperienced solicitor can make all the difference.
It’s important to appoint your solicitor at this stage as your agent will soon be asking for their details.
A starting point may be to seek recommendations from friends and family and search online forproperty specialists in your area. Try and narrow down a shortlist to three and then get in touch witheach one individually. When choosing your solicitor, there are three key questions you need to ask.

What to ask your prospective solicitor
1.

Has your firm got a dedicated conveyancing department and if not, what level of experience doyou have? While a firm with a dedicated unit may ensure a smoother process, a good personalconnection with a solicitor is paramount2.

How do you calculate your fee? Some solicitors charge a flat fee and others require a percentageof the sale price, so make sure you confirm this with them in advance3.

What information do I need to provide you with? An experienced solicitor will make you aware ofwhat pieces of information and documents you need to gather to get the process started

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How we can help
Throughout the contracts and queries stage Sherry FitzGerald
will keep in touch with you by phone and email to answer any
questions you may have, or answer questions your solicitor
cannot. And if you are struggling to find a solicitor to use, wewould be happy to provide you with a panel of recommended
solicitors from which you can choose one.
Simply email newhomescustomerservice@sherryfitz.ie
and a member of our team will be in touch with you very shortly.

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6. Reserving your home
You are mortgage ready, have chosen your solicitor and most importantly have settled on the rightdevelopment and style of house you want to buy. You are ready to reserve the property. As soon as you
have agreed with your estate agent which home you wish to reserve, you will pay a booking deposit, which
can be done through bank transfer, bank draft, cheque, or on-site credit card payment.
Booking deposits are typically between €5,000 and €20,000 and are fully refundable up until a contract issigned.
When your reservation is accepted, it will be subject to ‘contract/contract denied’, which means it is notlegally binding until contracts are signed by both purchaser and seller. You should now notify your bank,and solicitor of your potential purchase. Once the deposit is paid, the property is officially ‘sale agreed’.
After you give the agent your solicitor’s details, contracts will then be issued on receipt of your deposit,
and it is important to let your solicitor know to expect them. Bear in mind that contracts need to be signed
within 21 days of issue.
If you will be drawing down a mortgage, the valuation and loan-offer process needs to be understood andacted upon.

Five steps to valuation-and-loan-offer for new mortgage holders
1.

Inform your bank or lender of the address of the home you have ‘sale agreed’, and remember that you
will be required to show your full mortgage approval from your chosen bank before signing contracts

2.

Your bank will then arrange a bank valuation, choosing from a panel of independent valuers, on yourbehalf to assess the site. This is done to ensure the property is of sufficient value to be used as security
for the mortgage

3.

Once this has been completed, the valuer will usually contact you directly to secure payment for thevaluation, which will cost you approximately €150 plus VAT. This figure can vary from lender to lenderand should be clarified with the valuer in advance4.

When payment is received by the valuer, they will email or post to you, your solicitor, and loan provider
a copy of the valuation

5.

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This will result in your full loan offer being approved by the bank, and you will receive a ‘Letter of Loan’

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How we can help
Our dedicated New Homes Customer Service team are on handto answer any questions you may have at every point on yourproperty journey, including this vital reservation stage. Just
email us on newhomescustomerservice@sherryfitz.ie, andwe can give you information about each development and talkyou through the Help-to-Buy incentive. We can also advise you
on availability and details about each home, helping you find aproperty that is right for you.

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7. Signing contracts and payment of contract
depositIn our experience, this is often the part that people find confusing. After you reserve your home, thebuilder’s solicitor will forward the contracts to your solicitor. Your solicitor will review the contracts andrespond to the builder’s solicitor with pre-contract queries on your behalf, should you have any.
You can also take this opportunity to query any legal issues with your solicitor. It is important to keep
in touch with your solicitor on a regular basis to seek updates on contracts and queries. You are also
required to have life assurance in place before signing.

Signing the contract and paying the contract deposit
1.

When all queries have been answered and paperwork is in order, your solicitor will make an
appointment for you to sign your contracts. If you are unable to sign contracts, you need to arrange
a power-of-attorney with your solicitor or third party

2.

At signing stage, you will be required to pay your contract deposit, and this amount can vary
between developments. Some require a percentage of the home value, less the amount of yourreservation deposit, and others have a set fee. The builder usually sets these deposit amounts

3.

You will pay whatever the remaining balance is on close-of-sale (see Stage 9)4.

Now that you and the developer have signed contracts, your status is now officially ‘exchanged’.
Questions you may have about the build of your new home should go through your solicitor

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How we can help
During the contracts stage, an agent from Sherry FitzGerald orfrom the development will be in regular contact with you. This
is to help you to complete the process within the 21 day signingperiod, as well as answering any further questions you may have.
For more than 20 years, Sherry FitzGerald Mortgages have been
providing independent mortgage and financial advice to property
buyers and sellers and are recognised as one of Ireland’s leading
brokers. Send us an email on financialservices@sherryfitz.ie
and a member of our team will be in touch very shortly to discuss
the best deals on house insurance and life assurance to ensure
this step goes smoothly.

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8. Completing the final stages of the build
You are getting very close to completion and construction is already well underway. Before you sign yourcontract, you will be given an indication of an estimated completion date. You should keep in touch withyour solicitor and estate agent after signing the contracts, and throughout the build, to ensure you are
kept informed on any updates on completion timelines.
Once your contracts are signed by both parties, you are in a legally binding contract with the builder. If
there is a delay, you may need to secure an extension on your mortgage approval. In this situation, makesure you give your mortgage broker or lender notice in advance and they can tell you the next steps inextending your loan approval. There are tasks that need completion at this stage and it’s important you
take note of and understand what needs to happen and why.

Three key tasks that must be completed at this stage
1.

BCAR – once your home is completed, it must go through various tests to achieve BCAR Certification(Building Control Amendment Regulation). Your builder will organise this and pay for it, and it will act
as an instruction to the local council or authority to check that the site is habitable, that all roads andfacilities are installed, and electricity and water are connected2.

BER – now compulsory for all new homes, a Building Energy Rating (BER) Certificate is an indicationof the energy performance of a home. A BER report will be compiled by an independent energy
specialist on behalf of the builder who will also cover the cost. This assessment will confirm theofficial BER rating

3.

Snag List – after your new home is complete and all certificates issued, the builder’s solicitor will issue
a completion letter to you and your solicitor. Your new home is now ready for inspection, also known
as ‘snagging’. You can then engage a surveyor to make sure all work has been carried out to an
acceptable standard, and to highlight any issues to the builder, for example the standard to which theproperty has been completed. If you engage a professional, you will need to pay them directly but it isalso something that you can do yourself

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How we can help
At this stage it is time to get organised in advance of your closing. We will
be in touch the moment we receive updates from the developer. And if you
haven’t already finalised who you wish to draw down your mortgage with,
now is the time to shop around, especially if you are required to renew
your approval. Sherry FitzGerald Mortgages have been providing
independent mortgage and financial advice to property buyers and sellers
since 2000 and are recognised as one of Ireland’s leading brokers. Call us
on 1850 3000 30 or email financialservices@sherryfitz.ie and we canwork with you to find the best deals on house insurance and life assurance
to ensure this step goes smoothly.
If you are struggling to find an independent surveyor to carry out yoursnag list, we would be happy to provide you with a panel of recommended
professionals from which you can choose one.

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199. Closing the deal and final inspection
You’re almost there, and once the snag list has been completed to your satisfaction, you must notify yourlender or broker. If you are taking out a mortgage, they will arrange for the funds of your mortgage tobe issued to your solicitor’s account in preparation for closing the sale. When your initial inspection or
snagging has been completed, the builder will contact you to carry out a ‘pre-closing inspection’ to makesure the home is left in ‘move-in condition’ and to confirm the closing date.

Final steps to home ownership and moving in
1.

Some lending institutions will require a second bank valuation to let you drawdown the mortgage. You
should notify your lender once you have snagged, for them to arrange a final valuation

2.

Your mortgage and life insurance must also be in place3.

Keep in mind that you should arrange transfer 3-5 days in advance of your closing date as it can takea full working day for closing funds to transfer from your account to the vendor’s solicitor account.
In some cases, a direct debit mandate must also be completed before the loan is released and yoursolicitor can advise you on this4.

The remaining balance of the purchase price is paid upon close of sale. If you are a cash buyer, this is
the entire value. For mortgage holders, it is the balance of your funds, as agreed with your lender5.

Service transfer and key collection - once the sale has closed, you will be given all relevant meterreadings and details of the utility providers. You should open your new utilities accounts within 10
days of taking ownership. Last but not least, it’s now time to pick up your keys from the site officeThat’s it! You have successfully bought a brand new home and can look forward to many
happy years ahead.

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21How we can help
Even though the process is very near completion, we are still available toanswer any queries you may have. Your bank will need to see home insurancein place before you move in. For the best home insurance options, simply email
financialservices@sherryfitz.ie and one of our mortgages team will be in touch
very shortly.
If you need us in the future, whether you are thinking of selling or shopping
around for a new mortgage, home insurance or life assurance, our new homes
and mortgages teams will be on hand to offer advice and give you guidance.

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Warning: If you do not keep up your repayments you may lose your home.

Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on.

Mortgage Insight DAC t/a Sherry FitzGerald Financial Services, Sherry FitzGerald Mortgages is regulated by the Central Bank of Ireland.

PSRA No. 002183