Frequently Asked Questions
Below is a list of mortgage related questions we are often asked.
How much do I need to have saved?
If you are a first time entrant in the property market, you will require 8% of the purchase price and any costs that may arise. These savings need not all be in a Bank Account, as a gift from a family member will suffice as the balance of funds.
What about my Track Record?
A good track record on savings or as a tenant is very desirable, if you are a previous borrower, a good track record is almost essential.
Is my employment status important?
An application must be a permanent employee and if self employed, must have at least one years audited accounts. Salary must be verified by a combination of either salary cert, P60 or pay slips.
How long does it take to actually get the mortgage?
You can get approval in principal with 24 hours. Then after the receipt of all documentation by your loan officer it takes less than 48 hours to formally submit your application. Your solicitor usually has the mortgage cheque within 5 working days.
What are the costs?
Evaluation Fees.
European Mortgages will help to absorb part of your valuation cost to get you started. You only pay €100 and we pay the balance. Your legal fees and engineer survey are your only other outlays..
Stamp Duty.
Residential Property Stamp Duty Fees from March 31st 2007 are as follows:
Second Hand Property
The stamp duty due on the purchase of a second-hand home depends on whether you're a first-time-buyer or not and the price of the property being purchased. The table below will help you work out your stamp-duty liability:
| Price € | First Time Buyers | Owner Occupier | Investors |
|---|---|---|---|
| 1 - 127,000 | 0 | 0 | 0 |
| 127,000-190,500 | 0 | 3 | 3 |
| 190,501-254,000 | 0 | 4 | 4 |
| 254,001-317,500 | 0 | 5 | 5 |
| 317,501-381,000 | 0 | 6 | 6 |
| 381,000-635,000 | 0 | 7.5 | 7.5 |
| Over 635,000 | 0 | 9 | 9 |
New Homes
If you are a first time buyer no stamp duty is payable no matter what size the house is.
For owner occupiers the stamp duty on new homes depends primarily on the area of the property. If the property is under 125 square metres and you're an owner occupier (i.e. you plan on living there, but it is not your first home purchased) then NO DUTY is payable. If the property is over 125 square metres and you are not a first time buyer you must pay stamp duty at the normal rates as outlined in the table above for second hand property.
If you are an investor, it does not matter what size the house is, you pay duty at the normal rates as outlined in the table above for second hand houses.
Solicitors Fees
This varies depending on the company but a good guide is that the charge will be at least 1% of the selling price of the house. You are advised to shop around in advance to see if you can get the best deal as this cost can be considerable.
Life Cover Protection
In the majority of cases it is mandatory to have a life assurance policy put in place to ensure that in the event of your death there is cover in place whereby the proceeds are for the sole use of repaying your lender. There is an abundance of products and providers and we will gladly advise you of the best option.
Mortgage Payment Protection
This is designed to pay mortgage repayments for a period of usually 12 months in the event of becoming sick, disabled, hospitalized or made redundant.
House Insurance
This is a must! When your house is valued. The valuer will suggest a possible insurance value. You can decide on the contents cover. We will advise on the best value for money.