Mortgages FAQs

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Mortgages FAQs

  • How do I know how much to save to buy a home?

    Buying a home requires more than the cost of the deposit. There are other fees that must also be paid at the time of purchase. With this handy Home Buying Calculator you can estimate the costs involved and how much you would need to save each month.

  • I have inherited/been gifted a property, am I a First Time Buyer?

    Because you did not personally take out a mortgage on this property previously, then you are considered a First Time Buyer. If any other party to the mortgage being applied for is not a First Time Buyer then none of the parties can be considered a First Time Buyer as per the Central Bank regulations.

  • Can a site be used as a deposit for a mortgage?

    Yes the value of the site will be considered as part of your equity when applying for a mortgage. First Time Buyers can borrow up to a maximum of 90% of the purchase price of the property. Second Time Buyers can borrow up to a maximum of 80% of the purchase price of the property. This applies to both house purchases and self builds. The total cost of the build together with the value or purchase price of the site is used to calculate the total cost in the case of a self build.

  • How does AIB calculate how much I can borrow?

    How much you can borrow really depends on how much you can comfortably afford in monthly repayments for the life of your mortgage, which may be up to 35 years for owner occupiers, depending on your age.


    When assessing how much you can borrow, we look at the detail of your overall financial situation – including income, outgoings, savings and other loan repayments. Then we calculate the monthly mortgage amount that you can afford to repay. You’ve probably been through the same exercise yourself and have a figure in mind that you think is manageable.


    It is important, though, to remember a few key points:


    • Most importantly, only reliable and sustainable income should be included in your calculations. By this we mean guaranteed income – bonuses and once-off payments may not be included

    • For your primary residence, AIB may offer up to 90% loan to value for First Time Buyers.

    • For Movers up to 80% loan to value is available

    • For one bedroom properties, the maximum you can borrow is 80% of the purchase price

    • Remember that your outgoings may increase in more ways than just the monthly mortgage repayment.


    There’s the cost of life assurance and home insurance to consider. As well as optional payment protection insurance if you wish.


    We will then carry out what’s called a “stress test”, this checks whether you could continue paying your mortgage if interest rates were to rise.


    We will then provide you with an indication of how much you can borrow.


    A Mortgage Advisor at your local AIB branch will be happy to take you through your financial situation and give you an idea as to how much you can borrow.

  • What proof of income is required?

    A mortgage is a long-term commitment. We can only include your sustainable income when calculating the amount you can borrow.


    If you are a PAYE employee this means your guaranteed basic salary, not including bonuses or other once-off income. To show your sustainable income you will need to:


    • Provide three months’ original payslips if you are paid monthly, six original payslips if you are paid fortnightly and eight original payslips if paid weekly

    • Provide the current years P60

    • Have an AIB Salary Certificate signed and stamped by your employer – you can pick up this certificate in your branch or download it online.

  • What else do I need to know when applying for a mortgage?

    After you receive a favourable response a valuation of the property will have to be carried out by a valuer on our residential mortgage valuers panel.


    • This can only be arranged by contacting our Central Valuations Team on 1890 100 051

    • The valuation will cost you €150.00. If this is carried out more than four months before the requested date of drawdown of the loan or of the final stage payment, a re-valuation will be required and this will cost you €65.00.

    • If you are applying for a self-build mortgage, the valuation report must be carried out no more than four months before the date of the letter of loan offer. Each stage payment will only be released on foot of certificates, in the form specified by us. In addition, a final original valuation report must be submitted to us before drawdown of the final stage payment and/or on completion

    • Drawdown will be based on the purchase price or the valuation of the property, whichever is lower

    • We can only lend to people over 18

    • The longest term we will lend over is 35 years (depending on your age)

    • Repayments should be less than 35% of your disposable income

    • Repayments can vary but this depends on the rate you choose

    • We offer fixed rate, variable rate and split rate mortgages.

  • What do Lenders look for in my bank statements when applying for a loan/mortgage?

    No matter which bank you go to for a loan or mortgage, they will want to see that you can manage your money, for example that your incomings and outgoings are balanced. They also like to see regular and continued saving amounts.

  • I am a First Time Buyer – what documentation do I need to supply with my mortgage application?

    We will need to see records of your bank accounts, savings and debt. Of course, for any accounts held with AIB, we will have access to those records, but for any non-AIB accounts you will need to supply copies of statements.


    The Mortgage advisor at your local AIB branch can tell you everything you need based on your particular situation. At the very least, all customers need to supply:

    • 6 months’ bank account statements for accounts not held with AIB (including one original statement)

    • Evidence of your savings record and any funds you will be putting towards the purchase of your home (again, only if these savings are not held with AIB)

    • 6 month’s statements for all non-AIB borrowings – including credit cards, car/personal loans and mortgages.


    You will also need to supply evidence of your employment and income. For PAYE employees, this includes:

    • 3 months’ original payslips if paid monthly, 6 original payslips if paid fortnightly and 8 original payslips if paid weekly.

    • your P60 and

    • an AIB Salary Certificate signed and stamped by your employer – you can pick up this Certificate at your local branch.

    By having all these documents ready when you apply, it will speed up your application and avoid delays.

  • I am self-employed/company director – can I get a mortgage?

    Yes - provided your income is sufficient and you provide documentation to support your application. If you’re self-employed, we’ll need to see:


    • 3 years’ financial accounts certified by your accountant

    • Confirmation that your tax affairs are up-to-date and in order

    • If your Business Account is held in a bank other than AIB, 6 months’ account statements (including one original statement)

    • For self-employed customers we also require 3 years’ Revenue Notices of Assessment and Tax Clearance confirmation


  • I have a site and am planning to build my own home can I get a mortgage?

    Yes, mortgages are available for Self-Build customers, provided you meet all the usual criteria, that is:


    • For your primary residence, AIB may offer up to 90% loan to value up for First Time Buyers.

    • For Movers up to 80% loan to value is available


    You will need to supply particular documents relating to the cost of your Self-Build and the final value, as well as a copy of the planning permission and details of the proposed size of the property. Your AIB Mortgage advisor can give you all the detail on this.

  • What kind of Insurance do I need to take out with a mortgage?

    Life Assurance and Home Building Insurance

    These are the 2 main insurances that you need to have in place before you can draw down your mortgage. Any insurance provider can provide the necessary insurance cover, but we’re happy to provide a quote – just ask your AIB Mortgage advisor.

  • What is the difference between the Interest Rate and the APR?

    The Interest Rate is the actual rate at which interest is charged on the amount you borrow. AIB calculates interest on a daily basis.


    APR stands for Annual Percentage Rate (APR) which is the total cost of your mortgage over its term, taking into account both interest rate charged and other fees, as well as whether interest is charged monthly or quarterly.

  • What other costs may be associated with purchasing a property?

    You should remember to budget for all the costs associated with purchasing a new property which may include:

    Legal Fees:
    When you have found your desired property and we have sanctioned your Mortgage you must choose a solicitor to act on your behalf. It is worth shopping around to get the most competitive quote available.

    You'll need a valuation report, completed by an approved valuer from the AIB Residential Mortgage Valuers panel. The valuation report must be dated within four months of the date of the drawdown of funds, otherwise you maybe required to obtain a new valuation. AIB has agreed with the panel a fee of €150 for the initial valuation and €65 for any subsequent valuations should they be required.

    Surveyors Fees:
    For your own peace of mind it may be worth organising a structural survey of your property. This will ensure that there are no faults that may affect its value. However, a structural survey is not a Bank requirement.

  • What Interest Rate options does AIB offer?

    Your AIB Mortgage advisor can tell you exactly what our current rates are and how they translate into monthly repayments, but this is how they work:

    With a Variable Rate:

    • Your monthly repayments may rise and fall as market interest rates change over the life of your mortgage

    • You have the option to make early or lump sum repayments so you can reduce the overall cost of your mortgage and pay the loan off early

    • You can also switch to a Fixed Rate any time you want.


    With a Fixed Rate:

    • Your repayments will stay at the same level for an agreed period of time (up to 7 years)

    • This gives you certainty and protects you from interest rate increases, but you generally pay a higher rate for this peace of mind and your repayments will not reduce if market interest rates fall

    • A breakage cost may be incurred if you wish to pay off a lump sum during the fixed rate term, or switch to a variable rate.

    The Split Rate option allows you to split your mortgage loan between Variable Rate and Fixed Rate, in whatever proportion you choose. This gives you peace of mind on part of your mortgage repayments while at the same time availing of the flexibility that a variable rate mortgage can provide.

  • What is a Foreign Currency Mortgage?

    If the currency of (some of) your income or assets you intend to use to repay the mortgage loan is not euro, and/or you live in a European Economic Area (EEA) state that is not in the euro zone, the mortgage loan is a foreign currency loan.

    You should be aware that fluctuations in the relevant currency exchange rates may affect the value of your outstanding mortgage balance and/or your repayment. This could mean that you may find it difficult to afford your mortgage repayments.
    We can only facilitate one non-euro currency per mortgage application.

  • I’ve heard of the Government’s Help to Buy Incentive. Where can I find out more?

    The Government introduced a new Help to Buy incentive in the 2017 budget. It only applies to First Time Buyers purchasing a newly built home. You could receive a rebate of up to €20,000 which could help fund your deposit. The value of the rebate is based on the tax you've paid over the last 4 years and is a maximum of 5% of the value of the property, valued at up to €400,000. There is no rebate on properties above €500,000. For more on this incentive visit

  • What is a Payment Holiday?

    A Payment Holiday (Moratorium or Interest Only) gives you the flexibility to take a break from your mortgage repayments for up to 6 months or reduce your repayments to Interest Only for up to a maximum of 12 months.  These options can be useful for certain family/lifestyle events such as maternity leave, education fees or home property improvements.


    The Payment Holiday options are available to existing AIB PDH (Private Dwelling House) mortgage customers*, subject to approval.


    • On a Moratorium Payment Holiday you will not be required to repay anything towards capital or interest for an agreed period of up to 6 months.

    • If you should choose a Payment Holiday with Interest Only, you are only required to pay the interest owing on your mortgage for an agreed period of up to 12 months.  The capital will remain outstanding.


    When the Moratorium or Interest Only period ends, your monthly repayments over the remaining term of your loan will be increased to ensure that your mortgage will be repaid (together with interest due) within its original term.


    To apply for either option, please return a completed 'Payment Holiday request for PDH Mortgages' form to your AIB Mortgage Advisor.

    *Existing owner occupier mortgage customers not in financial difficulty.

  • What is a Deferred Start?

    A deferred start is where you have the option to delay your mortgage repayments for the first 6 months of your mortgage. At the end of the deferred start, your mortgage repayment amounts will be increased to ensure that your mortgage will be repaid (together with interest due) within its original term.


    The deferred start option is available to new AIB PDH (Private Dwelling House) mortgage customers*, subject to approval.


    To avail of the deferred start option, please speak with your AIB Mortgage Advisor who is managing your mortgage application.


    *New owner occupier mortgages only. Excludes movers in negative equity and self builds.

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No Fees Mortgage Benefit FAQs

  • How can I avail of ‘No Fees’ on the current account that pays my mortgage?

    When you drawdown a new AIB mortgage for your home and pay by direct debit from an AIB personal current account, we’ll waive the maintenance and transaction fees that may apply to this account. We’ll automatically set this up for you so all you need to do is set up your direct debit.

  • From when is the Benefit available?

    This benefit is now available to both new and existing AIB private dwelling house (PDH) mortgage customers. All you have do is pay your mortgage by direct debit from an AIB personal current account. We will send you a letter to let you know that the benefit has been applied.



  • What are maintenance and transaction fees?

    Maintenance and transaction fees are fees which are charged quarterly for the processing of lodgements, withdrawals and the maintenance of your account.  For a detailed description of maintenance and transaction fees please refer to those fees described under the heading Account Fees at (A. Account Maintenance Fees and B. Account Transaction Fees) in the 'A Guide to Fees and Charges for Personal Accounts' booklet.  

  • What type of current account do I need to get this benefit?

    The following current accounts are eligible; AIB Personal Bank Account, AIB Student Account, AIB Student Plus Account, AIB Graduate Account and AIB Advantage Account. To be eligible for this benefit, you must pay your mortgage by direct debit from one of the above mentioned personal current accounts.


  • Can I get this benefit with any AIB mortgage?

    This benefit is available on any AIB private dwelling house (PDH) mortgage. This includes First Time Buyers, Home Movers, Switchers, Mortgage Top Ups and Negative Equity Mover Mortgages.

    If you are not a PDH mortgage customer and you change to a PDH mortgage any time in the future, you will then become eligible for the benefit.

  • When will my maintenance & transaction fee free banking start?

    It may take us up to five days from when you drawdown your mortgage to apply the benefit but we will write to you to let you know when it has been applied. 

  • How will I know if the benefit has been applied?

    We will write to you to let you know as soon as we have applied the benefit. You’ll also notice the savings on your current account statement which will show as ‘No fees – Mortgage’ every fee quarter.

  • How long will I have this for?

    You’ll have this benefit for as long as you continue to pay your mortgage by direct debit from your AIB personal current account.

    There are circumstances where you may have to pay fees again such as when you finish paying back your mortgage or close your mortgage loan account. For further information please refer to the full Terms and Conditions of this offer.

  • I don’t pay my mortgage by direct debit, can I still get this benefit?

    If you are not currently paying by direct debit, don’t worry you can still enjoy this benefit. All you need to do is set up a direct debit to pay your AIB mortgage from an AIB Personal Current Account.
    Once a direct debit is set up, we will automatically apply the benefit.

  • Can I switch my current account to AIB to get this benefit?

    Yes of course.  If you switch to an AIB personal current account you can avail of this benefit, provided that you set up a direct debit from your new AIB personal current account within 12 months from when you drawdown your AIB mortgage.


    If you are thinking of switching, simply call into any AIB branch and one of our Customer Service Officials will be happy to take you through the next steps for switching your Personal Current Account(s).Or you can phone us with any queries on switching to AIB on 0818 300 245 (lines open: 9am-5pm Monday to Friday).

    For more information on switching your current account click here.

  • What if I don’t pay my mortgage from an AIB personal current account?

    All you need to do is set up a direct debit to pay your mortgage from an AIB personal current account to enjoy this benefit.

    If you would like to open an AIB personal current account, please contact your local branch or click here to find a current account to suit you.

  • If I pay my mortgage from a joint current account can I still get this benefit?

    Yes this benefit can be applied to either sole or joint accounts. We’ll waive the maintenance and transaction fees on the AIB personal current account that you fill out on your direct debit mandate to drawdown your mortgage with us. 





  • I have a Student Plus or a Graduate account….what does this mean for me?

    You already get maintenance and transaction fee free banking and some other benefits besides. And now that you have taken a new mortgage with us, your fee free banking will last a little longer. This will not affect any other feature or benefit of your account. To see the full details of your maintenance and transaction fees for these types of account click here.

  • I have an AIB Advantage account….what does this mean for me?

    As an AIB Advantage account holder, you already get maintenance and transaction fee free banking. This benefit will not affect any other feature or benefit of your AIB Advantage account.  

  • Can I change the benefit to another current account?

    The benefit can only be applied to the current account that pays the direct debit for your mortgage repayments.

  • What happens if I change my direct debit to another AIB current account?

    If you change the account from which your mortgage direct debit is paid the benefit will continue to be applied to the original AIB personal current account for as long as you are eligible. If you prefer, you can request that the benefit is also moved to the same account that your mortgage direct debit has been transferred to. 

  • Do any other fees apply to my current account when I have this benefit?

    Yes.  Other AIB charges may apply. Details of all fees and charges are available in our booklet 'A Guide to Fees and Charges for Personal Accounts'.

  • If I have queries in relation to the ‘No Fees’ mortgage benefit who can I contact?

    Drop into any AIB branch and speak to a Mortgage Advisor or call us on 0818 646 018 (Monday to Friday 9am to 5pm).

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