Other costs include stamp duty where the purchase price is more than 60,000, a mortgage indemnity bond, mortgage and home insurance, legal fees, search fees, land registry fees, valuation and surveyor reports. If the property is second hand or in bad repair, there may also be maintenance and improvement costs. A general rule of thumb for lenders is that the loan must not exceed three times the buyer's income. While this is best practise, generally the higher your earnings and savings, the more options you have available. Things are more difficult for the self-employed, who are often asked to provide proof of average taxable earnings over the previous three years.
Most people see taking out a mortgage as the most important investment of their life.
However before making this leap, it would be prudent to examine the alternatives of renting or house sharing compared with the cost of buying a home. Renting or house sharing has become increasingly popular in Ireland in recent years because of current house prices. The proportion of people who own their own homes in Ireland is higher than in most other European countries. In Germany and France it has always been the norm to rent apartments. However, tax relief on renting in Ireland is not generous and rent may be seen as wasting money.