BUYING YOUR FIRST HOME?
The First Time Buyer Mortgage Journey
So you’ve decided to buy your first home. It’s a huge decision, and the process ahead may seem daunting. Don’t worry. Our First Time Buyer mortgage has been designed specifically for customers buying their first home, and we have all the information you need right here. Read on to discover how to start your mortgage application and get the ball rolling. Or why not download our First Time Buyer’s guide, which will guide you through whatever step you’re on.
The first 5 steps of your mortgage journey
Step One: Find out how much you can borrow
Use our Mortgage Calculator to find out how much you can borrow. You can also now apply for your mortgage fully on line with our Online Application process. It couldn’t be easier.
Step Two: Talking to an AIB Mortgage Advisor
You don’t have to have your deposit saved or your documents in order to talk to an AIB mortgage advisor. No matter what the query, you can drop in or Make a Mortgage Appointment with a Mortgage Advisor before you begin the official process. They’ll make sure you’re on the right track from the very start.
Step Three: Saving for your deposit
Unsure exactly how much deposit you need to buy your first home? As a First Time Buyer you will need a deposit of at least 10%, up to 80% loan to value is available for a studio apartment valued at €275,000 or above or a one-bedroom property. We do not lend for the purchase of studio apartments valued at under €275,000. Go get the ball rolling, see how much you may need for a deposit and start saving today.
Step Four: Getting your mortgage paperwork in order
The most important part of your application is proving you can repay the mortgage loan. Your Mortgage Advisor will tell you exactly what you need to provide, such as payslips, bank statements, credit card bills or other documents. Check out our mortgage checklist here. Step
Step Five: Getting mortgage Approval in Principle
Once your deposit is in place you can apply for a Sanction in Principle. This is when your bank agrees, in principle, to give you a mortgage, based on the information you’ve provided. You will then know exactly how much you have to spend on your new home.
Need more information on what happens next? Download our useful First Time Buyer’s guide, which outlines the steps from your first mortgage meeting to getting the keys for your new home.
Key Features of a First Time Buyer Mortgage with AIB
We know you’re taking a huge step forward – and that the whole mortgage application process may seem a bit daunting. So we’re here to give you all the information you need to set you on the road to getting a mortgage.
1. Your personal Mortgage Advisor will guide you through the mortgage journey, so you can focus on finding your new home
2. *Delay your mortgage repayment for the first 6 months, subject to approval
3. Mortgage approval for 12 months, giving you time to find the perfect home
5. No Fees – When you have an AIB PDH (private dwelling house) mortgage with us, we’ll waive the maintenance and transaction fees on the current account you use to pay your mortgage. All you need to do is set up a direct debit to pay your mortgage from an AIB personal current account
6. **Existing customers, you can take a payment holiday from your mortgage for up to 6 months, subject to approval
7. We offer repayment terms of up to 35 years.
8. What you can borrow will depend on what you can comfortably afford to repay each month. As a general rule this should not exceed 3.5 times your gross annual income, this may vary according to your situation.
9. You will get a free consultation with an AIB Financial Advisor. They will recommend the best options for you, including life insurance, specified illness and income protection options
10. First Time Buyers will be happy to hear that they can get 30% discount on Home Insurance if they have been claim free for 3 years. Discounts are applied on a reducing balance and a minimum premium amount of €157.50 applies
11. Managing new bills can be tough, so we offer a low-cost finance Masterplan Account to help
12. You will need to be over 18 (otherwise you can't sign the contract - which is the most important part of the process).
* New owner occupier mortgages only. Repayments will increase over the remaining loan term. Excludes movers in negative equity and self builds.
** Existing owner occupier mortgage customers not in financial difficulty. Repayments will increase over the remaining loan term.
First Time Buyer Mortgage Resource Centre
First Time Buyer Guides
If you need some guidance for buying your first home, check out our First Time Buyer guides below.
- First Time Buyer Mortgage Journey: A Step-by-Step Guide
- How Much Can I Borrow? Use Our Mortgage Calculator
- AIB Mortgage Interest Rate Options
- AIB Mortgage Interest Rates
- Know Your APR From Your LTV: Mortgage Jargon Explained.
- Mortgage Application Checklist: What Do I Need For My Mortgage Loan?
- Residential Mortgage Valuers Panel Listing
Things I need to know before applying for a First Time Buyers Mortgage
- You will need to get Home Insurance (it’s the law). We can arrange this for you, or you can purchase it from another Insurance Company.
- Be aware that there will be a penalty charge if you break the following terms of your mortgage: if you take a mortgage with a fixed rate of at least one year and decide to repay this early (whole or partially), if you convert to a variable interest rate, or if you change to another fixed interest rate.
- Don’t forget to budget for other costs. For example, you will need to keep aside some funds for Valuation fees. You will also need to cover legal fees, surveyor fees and stamp duty. (Not forgetting possible repairs and decoration of your new home).
- 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.
- The currency of your loan and repayments will be euro. 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
Forms for Mortgage Application
Talk to AIB about your mortgage
Drop in to any AIB branch and speak with a Mortgage Advisor today. They’ll explain exactly what’s involved, and answer any of your questions.
AIB Home Insurance is exclusively underwritten by AXA Insurance dac. AIB Insurance Services Limited is regulated by the Central Bank of Ireland. Allied Irish Banks, p.l.c. is tied to Irish Life Assurance plc, for life and pensions business. Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Irish Life Assurance plc is regulated by the Central Bank of Ireland.
Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland.
Warning: If you do not keep up your repayments you may lose your home.
Warning: You may have to pay charges if you pay off a fixed-rate loan early.
Warning: The cost of your monthly repayments may increase.
Warning: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.