Buying your first home in Ireland in 2026 is one of the most significant decisions you will ever make — and one of the most complex. Between Central Bank lending rules, multiple government schemes with overlapping conditions, green mortgage rates that require a BER certificate, and a property market where good homes move fast, first-time buyers face more moving parts than ever. The good news: with the right preparation, the right advice, and a clear understanding of how the rules and schemes interact, buying your first home in Ireland is genuinely achievable — even in a county like Kerry, where median prices are rising but remain 23% below the national median.
At Money Sense Financial Services in Killarney, our mortgage comparison and advice service guides first-time buyers across Co. Kerry and nationwide through every stage — from initial borrowing capacity to drawing down the keys. This guide covers every key question, reflects the most current 2026 rules, and gives you the local context that national guides miss.
Kerry context: the median house price in Co. Kerry in 2026 is €295,000 — up 7.7% on 2025 but still 23% below the national median of approximately €385,000. Killarney, the county’s most sought-after location, has a median price of €371,250. Tralee, the county town, offers more affordable options. For buyers in Kerry, the gap between local affordability and the cost of equivalent properties in Dublin is a genuine advantage — and one that makes first-time homeownership far more achievable here than in many other parts of Ireland.
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How Much Can a First-Time Buyer Borrow in Ireland?
The Central Bank of Ireland sets the maximum amount lenders can offer mortgage applicants. For first-time buyers in 2026, the standard rule is four times your gross annual income — applied to the combined income for joint applicants.
| Annual Income (Gross) | Standard Max Mortgage (4×) | With Exception (4.75×) |
| €40,000 single | €160,000 | €190,000 |
| €55,000 single | €220,000 | €261,250 |
| €70,000 couple | €280,000 | €332,500 |
| €90,000 couple | €360,000 | €427,500 |
| €110,000 couple | €440,000 | €522,500 |
Mortgage Exceptions: Borrowing Beyond 4× Income
In limited cases, lenders can offer exceptions beyond the standard 4× limit — up to 4.75× gross income for first-time buyers. These exceptions are at the lender’s discretion, subject to individual affordability assessment, and competition for them is strong. Not every applicant qualifies, and not every lender has exception capacity at any given time. Working with an independent mortgage broker gives you the best chance of accessing an exception — a broker knows which lenders have capacity and which applicants are most likely to qualify.
Critical note for First Home Scheme users: you cannot use both a mortgage lending exception and the First Home Scheme on the same purchase. If you use the exception route, you are restricted to standard income multiple limits for the FHS. This matters when planning your application strategy — confirm your approach with a broker before committing.
How Much Deposit Do First-Time Buyers Need in Ireland?
The minimum deposit for a first-time buyer in Ireland is 10% of the purchase price — the Central Bank’s Loan to Value (LTV) rule caps borrowing at 90% for first-time buyers. On a €295,000 Kerry property at the county median, that is €29,500 minimum. On a €371,250 Killarney property at the local median, the minimum deposit is €37,125.
A larger deposit has three practical benefits beyond just accessing the mortgage:
- It improves your LTV ratio — lower LTV unlocks better interest rates, particularly below the 80% LTV threshold
- It reduces your monthly repayment and total interest paid over the mortgage term
- It strengthens your application in lenders’ eyes, as it demonstrates savings discipline and reduces their risk
The Help to Buy scheme (see below) can provide up to €30,000 towards this deposit on new-build properties — potentially covering the entire minimum deposit on homes up to €300,000 at the 10% level.
Green Mortgages: Why Your Property’s BER Rating Matters in 2026
One of the most significant developments in Irish mortgage pricing in recent years is the green mortgage premium. Properties with a BER (Building Energy Rating) of B3 or better qualify for green mortgage rates — currently the lowest rates on the Irish market, in some cases from 3.0% fixed. Properties with lower BER ratings access higher rate tiers.
This creates a material difference in monthly repayments and total interest over a 30-year term. A 0.5% rate differential on a €280,000 mortgage over 25 years is approximately €22,000 in total interest. For new builds — which almost universally carry A or B BER ratings — this is another advantage of the new-build route beyond Help to Buy eligibility.
If you are purchasing a second-hand property, commissioning a BER assessment before application is worthwhile — you may qualify for green rate pricing if the property is already efficient or if you plan retrofitting. Some lenders also offer additional green top-up loans for energy upgrades. Discuss this with a broker before assuming your rate tier. Our mortgage comparison and advice team compares rates and BER eligibility across all Irish lenders.
| Not sure which lender offers the best rate for your income, deposit and property type? |
Help to Buy Scheme Ireland: Up to €30,000 Towards Your Deposit
The Help to Buy (HTB) scheme is a Revenue-administered tax refund for first-time buyers of new-build homes. It refunds the income tax and DIRT you have paid over the previous four tax years — up to a maximum of €30,000 or 10% of the purchase price, whichever is less.
Help to Buy Eligibility — Current 2026 Rules
| Condition | Detail |
| Who qualifies | First-time buyers only (all applicants must be first-time buyers on a joint application) |
| Property type | New-build homes or self-build — not second-hand properties |
| Price ceiling | €500,000 or less |
| Loan-to-value rule | Must borrow at least 70% of purchase price from your mortgage lender |
| Occupation requirement | Must live in the property as your principal private residence for at least 5 years |
| Scheme duration | Extended to 31 December 2030 under Budget 2026 |
| Maximum refund | Lesser of: €30,000, 10% of purchase price, or total income tax and DIRT paid in previous 4 tax years |
Important 2026 update: the 70% LTV requirement is non-negotiable. If your mortgage falls below 70% of the purchase price — for example, because your income only allows you to borrow 65% of the purchase price — you lose Help to Buy eligibility entirely. Confirm your likely borrowing percentage with a broker before assuming you qualify. This catches more buyers than most people realise.
How the refund is paid: for new builds, Revenue pays the HTB refund directly to the developer as part of your deposit. You apply through the Revenue myAccount portal and receive an access code, which you give to your developer. The refund reduces the cash deposit you need to bring to the transaction.
Over 64,000 first-time buyers have used the Help to Buy scheme to date. For eligible buyers purchasing a new home in Kerry — from the new developments around Tralee and Killarney to schemes along the county’s main employment corridors — HTB can make a transformative difference to deposit affordability.
First Home Scheme: Shared Equity to Bridge the Affordability Gap
The First Home Scheme (FHS) is a shared equity initiative from the government and participating lenders. It tops up your mortgage and deposit by taking an equity stake in your property — allowing you to buy a home whose full price is beyond what your mortgage and savings alone can reach. You pay no rent or interest on the equity for the first five years.
How the First Home Scheme Works
The FHS can provide up to 30% of the purchase price (or 20% if combined with Help to Buy). In practical terms:
- Couple income: €80,000. Standard max mortgage: €320,000. Deposit: €32,000 (10%). Property cost: €420,000.
- Without FHS: they are €68,000 short. With FHS at 20% (because HTB covers 10%): scheme provides up to €84,000. Purchase becomes achievable.
First Home Scheme — 2026 Key Updates
One of the most important changes in 2026 is that the FHS is no longer limited to new-build homes only. The scheme now also supports certain tenant purchase cases and has been extended in scope. This makes more buyers eligible than the old “new builds only” description suggests. Check the current criteria at firsthomescheme.ie before ruling yourself out.
FHS participating lenders in 2026: AIB, EBS, Haven, Bank of Ireland, and PTSB. Your mortgage must be with one of these lenders to access the scheme.
FHS property price ceilings are reviewed every six months and vary by area. In 2026, ceilings in Kerry are appropriate for the local market — confirm the current ceiling for your specific target area when you apply.
Can I Combine Help to Buy and the First Home Scheme?
Yes — but with a critical interaction rule. If you use both HTB and FHS on the same purchase, the maximum FHS equity contribution drops from 30% to 20%. You also must still borrow at least 70% of the purchase price from your lender for HTB eligibility to apply.
You cannot use a mortgage lending exception AND the First Home Scheme on the same purchase. If you are considering stacking schemes, the order of decisions matters: confirm your mortgage capacity first, then model whether HTB, FHS, or both serve your specific numbers. Our mortgage comparison and advice team models all combinations for every first-time buyer client.
| Want us to model whether HTB, FHS, both, or neither is right for your situation? |
Local Authority Affordable Purchase Scheme: The Third Route
The Local Authority Affordable Purchase Scheme is a separate government pathway that allows first-time buyers to purchase newly built homes from local authorities at a discount to market value. The local authority retains a percentage equity stake in the property in exchange for the discount — which can be bought out over time.
This scheme suits buyers whose combined deposit and maximum mortgage capacity fall short of the full market value of a home. To qualify, your purchasing power must be less than 85.5% of the open market value. You can hold savings above the required deposit, but only up to an additional €30,000 — anything above this is added to your purchasing power and could disqualify you.
Affordable Purchase homes are advertised through individual local authorities when new schemes are released — there is no rolling application list. Kerry County Council publishes any available affordable homes on its website. Having Approval in Principle from a lender in place before applying is strongly recommended, as applications are typically first-come-first-served.
Local Authority Home Loan: A Mortgage for Those Declined by Banks
The Local Authority Home Loan is a government-backed mortgage scheme for buyers who cannot get sufficient financing from a mainstream lender. It offers competitive fixed rates — currently around 3.4% fixed for 25 years — and is available for new builds, second-hand homes, and self-builds.
In 2026, the published income limits are €70,000 for single applicants and €85,000 for joint applicants. If you have been declined by two mainstream lenders due to income limits (not credit issues), the Local Authority Home Loan may provide an alternative route. Applications are made through Kerry County Council for properties in Co. Kerry.
Mortgage Rates for First-Time Buyers in Kerry in 2026
Mortgage rates in Ireland stabilised following the peak-rate period of 2022–2023. Average new mortgage rates in early 2026 are approximately 3.3%–3.4% for standard products, with green mortgage rates — for BER B3 or better — available in the low-3% range from some lenders.
Key rate dynamics in 2026:
- Fixed rates remain lower than variable rates — 3-to-5-year fixed terms remain the most popular choice
- LTV thresholds matter: rates often improve meaningfully at 90%, 80%, and 60% LTV — if you can push just below the 80% LTV threshold with a slightly larger deposit, you may access meaningfully better pricing
- Cashback offers: some lenders offer €2,000–€5,000 cashback on new mortgages — but always compare total cost of credit over the term, not just the upfront cashback
- Green pricing: properties with BER A or B qualify for sub-3.5% rates from several lenders; this advantage is particularly relevant for new builds, which almost all qualify
For Kerry buyers: location does not restrict your lender choice. You can apply to any Irish lender from anywhere in Kerry. A mortgage broker in Killarney, like Money Sense Financial Services, has access to the full market regardless of where in Ireland you are purchasing — and can identify which lender currently offers the best combination of rate, cashback, and criteria for your specific profile.
The Step-by-Step Process for First-Time Buyers in Ireland
Step 1: Assess Your Financial Position (Now — Before Anything Else)
Check your credit record via the Central Credit Register (centralcreditregister.ie). Calculate your estimated borrowing capacity (4× gross income). Estimate your deposit gap and HTB eligibility. Review your bank statements — lenders typically assess the last 6 months. Clear any unnecessary debt, limit overdraft use, and minimise recurring non-essential spending.
Step 2: Get Approval in Principle (AIP)
Apply through an independent mortgage broker to compare the full market. AIP typically takes 5–10 working days once all documents are provided. AIP tells you exactly how much you can borrow — not an estimate — and is essential before viewing properties seriously. New development sales offices in Kerry require AIP before putting buyers on purchaser lists.
Step 3: Apply for Help to Buy Through Revenue
Log in to Revenue’s myAccount and complete the HTB application (if you are purchasing a new build and meet the conditions). Revenue issues you an access code and a claims number — these go to your developer as part of your deposit. The HTB application can run in parallel with your property search.
Step 4: Find Your Property and Instruct a Solicitor
Once you identify a property, pay a booking deposit (typically €5,000–€10,000, usually refundable). Instruct a solicitor as early as possible — the solicitor requests the contracts from the vendor’s side and begins title checks. Engage a structural surveyor for second-hand properties (approximately €400–€600).
Step 5: Full Mortgage Application
Your broker progresses to a full mortgage application with property details. The lender arranges a valuation (typically €150–€185, sometimes covered by the lender). If using FHS, apply through the scheme portal with your participating lender.
Step 6: Mortgage Protection and Home Insurance
Mortgage protection insurance is a legal requirement for most residential mortgages in Ireland for buyers under 50. Shop this independently through a broker rather than taking the lender’s own product — you will almost always find better rates from the open market. Our protection advice team handles this as part of every first-time buyer mortgage review.
Step 7: Drawdown and Keys
Your solicitor handles contracts, title transfer, and the mortgage deed. On closing day, mortgage funds are released to the vendor’s solicitor and you receive your keys. Total timeline from AIP to completion is typically 8–16 weeks for new builds, and potentially faster for second-hand properties once a sale is agreed.
What Mortgage Lenders Actually Look For in 2026
Beyond income and deposit, lenders conduct detailed affordability assessments. Understanding what they examine helps you present the strongest possible application:
- Bank statements (6 months): lenders assess spending patterns, savings consistency, and financial discipline — reduce gambling transactions, minimise unnecessary subscriptions, maintain regular savings patterns
- Credit record: any missed payments, defaults, or arrears on any account — loans, credit cards, buy-now-pay-later products — are viewed negatively. Check your record early and allow time to address any issues
- Existing debt: car loans, personal loans, credit card balances all reduce your borrowing capacity in the lender’s affordability calculation
- Employment stability: permanent contracts are preferred; probationary employees or recent job-changers may face delays. Self-employed applicants need 2 years of certified accounts
- Rent payments: consistent rental payment history, supported by bank statements, strengthens your application — it demonstrates you can sustain regular housing costs
- Stress testing: lenders typically assess whether you could manage repayments if rates rose by approximately 2% — factor this in when deciding how much to borrow
For Kerry buyers: if you are a public sector employee — teacher, nurse, garda, HSE staff — your employment terms are viewed very favourably by most lenders. Some lenders have specific public sector mortgage products. Our mortgage comparison and advice team knows which lenders offer the best terms for public sector applicants in Kerry.
| Ready to start your first-time buyer mortgage journey in Kerry? Let our local advisors guide you. |
Frequently Asked Questions
How do I get a first-time buyer mortgage in Ireland?
Start by assessing your borrowing capacity (4× gross income for most buyers), confirming your deposit (minimum 10%), checking your HTB eligibility for new builds, and applying for Approval in Principle through an independent mortgage broker. A broker compares all Irish lenders and identifies the best rate, scheme combination, and application strategy for your situation.
How much can I borrow as a first-time buyer in Ireland?
Under Central Bank rules, most first-time buyers can borrow up to 4 times gross annual income. A couple on €80,000 combined can borrow up to €320,000 standard. In limited cases, lenders can grant exceptions up to 4.75×. Your actual offer depends on affordability assessment, existing debt, and credit history. Note: exceptions and the First Home Scheme cannot be combined on the same purchase.
How does the Help to Buy scheme work in Ireland?
Help to Buy refunds the income tax and DIRT you paid in the previous four tax years (2022–2025 for applications in 2026). The maximum refund is €30,000 or 10% of the purchase price, whichever is less. It applies only to new-build homes costing €500,000 or less. You must borrow at least 70% of the purchase price. Apply through Revenue’s myAccount. The scheme runs until December 2030.
What is the First Home Scheme in Ireland?
The First Home Scheme provides shared equity of up to 30% of a property’s purchase price (20% if combined with Help to Buy), bridging the gap between your mortgage, deposit, and asking price. You pay no rent or interest for the first five years. It now applies to new builds and some other property types. Participating lenders are AIB, EBS, Haven, Bank of Ireland, and PTSB. Property price ceilings vary by area and are reviewed every six months.
What is the minimum deposit for a first-time buyer in Ireland?
The minimum deposit is 10% of the purchase price. On a €295,000 Kerry home (county median), that is €29,500. On a Killarney property at the local median of €371,250, that is €37,125. The Help to Buy scheme can provide up to €30,000 of this deposit on qualifying new builds, potentially covering the entire minimum required.
What mortgage rates are available for first-time buyers in Ireland?
In 2026, fixed mortgage rates for first-time buyers range from approximately 3.0%–3.8% depending on the lender, loan-to-value ratio, and property BER rating. Green mortgages (BER B3 or better, including most new builds) access the lowest rates. Comparing the full market through a broker rather than going directly to one bank is strongly recommended — the rate difference over a 30-year term can amount to tens of thousands of euros.
Is there a mortgage broker for first-time buyers in Kerry or Killarney?
Yes. Money Sense Financial Services is based in Killarney and provides independent mortgage advice to first-time buyers across Co. Kerry — including Killarney, Tralee, Listowel, Kenmare, Killorglin, Dingle, and Castleisland — and nationally. We compare all major Irish lenders, guide you through Help to Buy and First Home Scheme applications, and provide Approval in Principle support. All advice is independent and regulated.
Can a first-time buyer in Kerry use both Help to Buy and the First Home Scheme?
Yes, in many cases. When combining both schemes, the First Home Scheme’s maximum equity contribution drops from 30% to 20%. You must still borrow at least 70% of the purchase price from your lender for Help to Buy eligibility to apply. You cannot use a mortgage lending exception alongside the First Home Scheme. Model your specific numbers with a broker before committing to an application strategy.
What is Approval in Principle for a mortgage in Ireland?
Approval in Principle (AIP) is a lender’s provisional confirmation of how much they will lend you, based on your income, deposit, and credit profile — before you have found a specific property. AIP is essential in the current Irish market: estate agents, new development offices, and vendors all expect it before taking offers seriously. It is typically valid for 6–12 months and takes 5–10 working days to obtain once all documents are submitted.
Do I need a solicitor to buy a house in Ireland as a first-time buyer?
Yes. A solicitor is legally required to handle the property purchase — reviewing contracts, conducting title checks, managing the mortgage deed, and handling the transfer of funds on closing day. Solicitor fees typically range from €1,500 to €3,000 plus VAT. Budget also for stamp duty (1% for properties under €1 million), a structural survey (€400–€600), and property valuation (€150–€185, sometimes covered by the lender).
Your First Home in Kerry or Ireland Starts With the Right Advice
The combination of Help to Buy, the First Home Scheme, competitive green mortgage rates, and Kerry’s more accessible property prices means the 2026 Irish market offers real opportunities for first-time buyers who plan correctly. The challenges are real — but so are the supports.
Money Sense Financial Services is based in Killarney and serves first-time buyers across Co. Kerry and nationally. Our advisors are independent — not tied to any single lender or insurer — and regulated by the Central Bank of Ireland. We compare the full mortgage market, model your scheme eligibility, and guide you from first conversation to front door. Book your free consultation today — it costs nothing and could save you thousands.
| Money Sense Financial Services | Killarney, Kerry | Regulated by the Central Bank of Ireland |
