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Top tips for saving for a deposit (and the extra hidden costs)

From making use of of the Help-to-Buy scheme to savvy ideas for savings extra money here are a few things you can do to get your deposit together.


Old fashioned saving


This might seem obvious but saving is a crucial way to get your deposit. But with high rents and other expenses it can be challenging. There's no problem with starting small and getting into a good habit. It also shows the bank that you can save consistently each month. Even if you are gifted the entire deposit banks will still want to see that you can manage your own funds and afford monthly mortgage payments. It's easy to set up a savings account and organise a direct debit on the same day each month. Set your budget and keep track of your spending. This will help you to make some simple cut-backs that can help in the long-term.


REMEMBER: Try not to withdraw any funds from your savings account. The banks will not look favourably on this and may delay your approval. You can make your account 'locked' which means you would need to notify the bank 30 days ahead of time to withdraw any cash.


Use the Help-to-Buy scheme


The Help-to-Buy (HTB) incentive is a scheme for first-time property buyers. It helps with the deposit that is needed to buy or build a new house or apartment. It works by giving you a refund of Income Tax that you paid in Ireland for the four years prior to your application. This scheme can increase your deposit by up to €30,000 so can really help to get you a new home faster.


Choose a mortgage with a cashback deal


Some people are fortunate to be able to get short-term loans from family or friends while saving for a mortgage. A cashback deal can be a useful way to pay them back shortly after closing the sale. The rates of cashback mortgages can be higher than others but you can always switch to another deal in a few years.


Claim a tax refund


The average amount for applicants of tax refunds is €900-€1,100. Though this won't cover a full deposit every little helps! You can also look for tax relief that was introduced during the pandemic on other expenses, such as heating, broadband and electricity.





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