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Let’s be real: trying to buy your first home in Ireland right now is tough. House prices are sky-high, inflation is chipping away at your savings, and the cost of living makes budgeting feel nearly impossible.
But here’s the thing: buying a home is still possible, even in this economy. It’s not easy, but with the right plan, a clear budget, and a bit of patience, you can absolutely get there.
If you’re at the beginning of your home-buying journey and wondering how you’ll ever afford it, this guide is for you.
What Are Houses Actually Costing in Ireland Right Now?
Let’s talk about the numbers, because it’s hard to budget if you don’t know what you’re aiming for.
As of Q1 2025, the average house price in Ireland is €347,000. In Dublin, it’s much higher, sitting at around €450,000. And if you’re thinking of buying a newly-built, the median price between July and December 2024 was a hefty €438,500.
However, prices aren’t the same everywhere. In some of the more affordable counties—like Longford, Leitrim, or Roscommon—you could find homes starting from €180,000 to €220,000. So, depending on where you’re looking, there’s still a range of options out there. The key is knowing what to expect before diving into the market.
Is There Some Hope on the Horizon?
It might not feel like it right now, but experts are predicting a shift in Ireland’s housing market. With more homes being built and interest rates expected to stabilise, house prices could start to cool between 2025 and 2027.
That means if you’re starting your savings or mortgage planning now, you could be in a better position by the time you’re ready to buy. It’s not instant relief, but it is a glimmer of hope for first-time buyers watching the market closely.
So, even if you can’t buy tomorrow, starting your budget and savings plan today could put you in a strong position when prices ease.
What Do You Actually Need to Budget For?
It’s not just about saving for the deposit; there are a few other costs that can sneak up on first-time buyers if you’re not prepared.
On top of your deposit, you’ll also need to budget for one-off costs like stamp duty, which is 1% of the property price on homes valued up to €1 million; legal fees (2,500–€3,000), and valuation or surveyor fees (€300–€500 plus VAT at 23%).
Then there are the ongoing monthly costs. Aside from your mortgage repayments, you’ll also need to factor in home insurance, mortgage protection insurance (which varies by age and cover), and your Local Property Tax (LPT), which is charged every year based on your home’s market value.
For a full breakdown, check out our blog on extra costs when buying a home in Ireland and financial tips for new homeowners—they’re packed with helpful info to make sure nothing catches you off guard.
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Tips to Successfully Budget for Your Home
Here are practical, easy-to-follow tips to help you budget for a house, perfect if you’re navigating high prices and rising costs:
Know What You Can Afford
Use a mortgage calculator to estimate your monthly repayments. A good rule of thumb is to keep your mortgage payment below 35% of your net income.
Track Every Cent
Keeping an eye on where your money’s going is a great first step in budgeting for a home. Use an app or a simple spreadsheet to track your spending—you’ll quickly spot habits like unused subscriptions, frequent takeaways, or impulse buys that can be trimmed back and redirected into your savings.
To make things easier, we’ve created a free personal budget planner that helps you manage your money with less stress. You can track your income, expenses, and even any investments, set monthly budgets, and clearly see where you have room to save.
Set Up a Separate Savings Account
Keep your house savings out of your everyday account. That way, you’re less tempted to dip into it, and you’ll see your progress more clearly.
Set a Monthly Savings Target
Setting a monthly savings goal is one of the simplest and most effective ways to stay on track. Be realistic—aiming for even €300 to €500 a month can make a big difference over time.
The key is consistency. Set up an automatic transfer so the money goes straight into your savings the day you get paid. That way, you won’t be tempted to spend it, and your deposit fund will grow without you having to think about it every month.
Cut Costs That Don’t Matter (Temporarily)
Skip that second streaming service. Cook more meals at home. Drive less. These small changes add up, and they’re temporary until you reach your goal.
Do a “Trial Run” Mortgage
If your projected mortgage is €1,300 and your rent is €1,000, save that extra €300 monthly. It’ll help test your future budget and boost your deposit.
Use Government Schemes
Look into Help to Buy, First Home Scheme. These can reduce how much you need to borrow or save.
Get Advice Early
Speak to a mortgage broker (like us at LowQuotes!) before you apply. We’ll help you understand how much you can borrow, what docu
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Why Saving a Bigger Deposit (If You Can) Is a Smart Move
Saving for a house is no small task, especially with the cost of living and high property prices. But if you can manage to save more than the minimum 10% deposit for first-time buyers, it can really pay off in the long run.
Here’s why a bigger deposit can make a big difference:
- Smaller mortgage needed: You’ll borrow less, which means lower monthly repayments and less interest paid over the life of your mortgage.
- Better interest rates: The bigger your deposit, the better your loan-to-value ratio (LTV)—and lenders love that. A lower LTV often means a more competitive interest rate, which can save you thousands over the years.
- More mortgage options: With a higher deposit, you may qualify for a wider choice of mortgage products, including those with lower fees or fixed rates.
- Stronger buyer position: A solid deposit shows you’re financially ready, giving you more leverage when bidding on a home or dealing with lenders.
If you can stretch your savings a little further, it could make your future mortgage much more manageable. And if you’re not in a rush to buy, use that time to your advantage—keep building your deposit fund so you’re in a stronger position when the right home (and the right price) comes along.
Even if you’re not actively house-hunting yet, it’s still a good idea to start saving now. A bigger deposit can open the door to better mortgage deals, lower repayments, and long-term savings on interest.
A Little Help from Family Can Go a Long Way
If you’re lucky enough to have parents, grandparents, or other relatives who want to help you financially, they can gift you up to €3,000 per year each, completely tax-free under the Small Gift Exemption.
This can be a significant boost to your house savings, especially if multiple family members contribute. Over a couple of years, it can really add up and help you reach your deposit goal faster.
To learn how it works and how to make the most of it, read our blog: Tax-Free Gift for Mortgage: Support Your Child’s Homeownership.
You Don’t Have to Be “Mortgage Ready” Today
Here’s something people don’t say enough: You don’t need to have it all figured out yet.
If you’re only starting to think about buying a home—whether you’re two years away or just six months from applying—it’s perfectly okay to take things step by step. What matters most is having a clear plan in place and giving yourself the time to prepare.
- Learn what’s involved
- Build up a small emergency fund
- Set realistic savings goals
- Keep an eye on the market
- Reach out to one of our financial advisors for expert guidance and support tailored to your situation.
And remember, you’re not on your own. We’re here to help with the bits that get confusing—from protection policies to mortgage terms and everything in between.
Your future home is calling. Get a personalised quote today!
Get a Financial Planning Quote
Buying your first home is a big milestone, and getting your finances in order is one of the most important parts of the process. A financial plan can help you see where you stand, what’s affordable, and what steps to take next.
Whether you’re working on your deposit, figuring out monthly repayments, or just want to understand your options, we’re here to help you prepare with confidence. Let’s make sure your finances are ready for this exciting step.
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All our content has been written or overseen by a qualified financial advisor. However, you should always seek individual financial advice for your unique circumstances.
