36‑Month Mortgage Deposit Plan: A Practical Guide for Irish Home‑Buyers (2025)
Introduction
Saving for a house in Ireland has never been easy – prices are still climbing (the CSO reports a 9 % rise in 2024) and lenders require a minimum deposit of 10 % of the purchase price.
For a typical first‑time buyer targeting a €350 000 home, that means a €35 000 deposit.
The good news is that with disciplined budgeting, the right savings products and the latest government incentives, you can hit that target in just three years. This guide walks you through a realistic 36‑month plan, shows how to maximise the Help‑to‑Buy (HTB) and First Home schemes, and explains the safety measures that protect your hard‑earned money.
1. Understanding the Deposit Target
| Scenario | Typical Purchase Price (2025) | Minimum Deposit (10 %) | Example Deposit Needed |
|---|---|---|---|
| Irish average home (CSO) | €375 000 | €37 500 | €37 500 |
| First‑time buyer in Dublin (mid‑range) | €525 000 | €52 500 | €52 500 |
| Starter home (price ceiling for HTB) | €500 000 | €50 000 | €50 000 |
Key points
- Central Bank rule: borrowers can normally borrow up to 4 × gross annual income (4.5× with an exemption).
- Deposit percentage: 10 % for new homes; up to 30 % for rental properties.
- Average saving time: the Banking & Payments Federation of Ireland (BPFI) reports an average of 4.6 years to reach a deposit. A focused 36‑month plan cuts that by a third.
2. Step‑by‑Step 36‑Month Savings Roadmap
2.1 Set a Realistic Target
- Choose your price band – decide the maximum home price you intend to buy.
- Calculate the 10 % deposit – add a 5 % buffer for incidental costs (legal fees, stamp duty, moving).
Example: Target price €350 000 → Deposit €35 000 + €1 750 buffer = €36 750. - Break it down: €36 750 ÷ 36 months = €1 020 per month.
2.2 Build a Monthly Budget
| Category | Typical % of net income | Tips to optimise |
|---|---|---|
| Housing (rent, utilities) | 30‑35 % | Consider a roommate or cheaper area |
| Transport | 10 % | Use public transport, cycle |
| Food & groceries | 10‑12 % | Meal‑plan, shop sales |
| Discretionary (entertainment) | 5‑7 % | Cut subscriptions, free activities |
| Savings for deposit | 20‑25 % | Automate transfers, treat as a bill |
Use a budgeting app (e.g., Money Dashboard, YNAB) to track spending and ensure the €1 020 / month target is met.
2.3 Choose the Right Savings Vehicle
| Product | Interest / Benefits | Tax Treatment | Access |
|---|---|---|---|
| MortgageSaver (Bank of Ireland) | 1.5‑2.0 % variable, bonus for regular contributions | Tax‑free interest up to €1 000/yr | Monthly direct debit |
| Regular Savings Account (AIB, PTSB) | 1.8‑2.2 % fixed for 12‑24 months | Tax‑free interest up to €1 000/yr | Requires minimum €100/month |
| Tax‑Free Savings Account (TFSA, introduced 2024) | Up to 3 % on first €5 000 | Completely tax‑free | No withdrawal penalties for mortgage use |
| Salary Sacrifice Savings (via employer) | Up to 4 % of gross salary, saved pre‑tax | Reduces PAYE/USC | Check with HR |
Strategy: Stack products – e.g., put €500/month into a TFSA (max €5 000 in 10 months) and the remaining €520 into a MortgageSaver account to benefit from the bonus interest for regular contributions.
2.4 Factor in House‑Price Growth
If the average price continues to rise at 5 %‑yearly (CSO trend), a €350 000 home could cost ≈ €382 000 in three years.
Add a price‑inflation buffer of 3 % to your deposit target:
Adjusted deposit: €38 200 × 10 % = €3 820 + buffer = €4 200 extra → new monthly saving ≈ €1 170.
3. Leveraging Government Schemes (2025)
3.1 Help‑to‑Buy (HTB) – Tax Rebate
- Maximum rebate: €30 000 per buyer.
- Eligibility: First‑time buyer, new home ≤ €500 000 (≤ €475 000 in Dublin/Cork).
- How it works: You receive a tax credit after purchase; the rebate can be applied to your deposit or used to reduce the mortgage principal.
Action: Apply for the HTB rebate within 12 months of moving in to ensure you capture the full amount.
3.2 First Home Scheme (Shared‑Equity)
- State contribution: Up to 30 % of the purchase price (20 % if combined with HTB).
- Price caps: €350 000 (general), €475 000 (houses) / €500 000 (apartments) in designated urban areas.
- Repayment: When you sell, the state receives its percentage of the sale price plus a modest uplift (usually 2 %).
Action: Use First Home in conjunction with HTB for maximum leverage – you could cover up to €45 000 of a €350 000 deposit.
3.3 Local Authority Home Loan (for those denied by banks)
- Interest: 4.05 % fixed for 25‑30 years.
- Eligibility: Low‑income households, first‑time buyers, or those with a poor credit record.
Action: Keep this as a safety net, but aim to secure a commercial mortgage first to benefit from lower rates.
4. Protecting Your Savings – Safety Measures
| Risk | Safeguard |
|---|---|
| Bank failure | Deposit Guarantee Scheme (DGS) protects up to €100 000 per person, per institution. Choose banks covered by the DGS. |
| Scams & high‑yield fraud | Only open accounts with Central Bank‑regulated institutions. Verify the institution’s registration on the Central Bank’s “Authorised Firms” list. |
| Identity theft | Use two‑factor authentication on banking apps, monitor your credit file (Free‑credit‑check.ie) quarterly. |
| Unplanned withdrawals | Choose accounts with restricted access (e.g., fixed‑term or regular‑savings accounts) that penalise early withdrawal, discouraging impulse spending. |
| Inflation eroding value | Prioritise higher‑interest, tax‑free products (TFSA, MortgageSaver) and keep a small cash buffer in an instant‑access account for emergencies. |
5. Adjusting for Interest‑Rate Outlook (2025)
- ECB rate: 2.9 % (June 2025) after a series of cuts.
- Irish mortgage rates: hovering around 3.1 %‑3.4 % for 5‑year fixed deals.
Implication for savers:
- While mortgage rates fall, the opportunity cost of keeping cash in low‑interest accounts rises.
- Consider a short‑term fixed‑rate savings product (12‑month) that offers 2.5‑3 % to keep pace with borrowing costs.
- If rates are expected to drop further, lock in a mortgage pre‑approval now (rates are often fixed for the first 6‑12 months of the loan) and revisit the deposit target if house prices soften.
6. Frequently Asked Questions
| Question | Answer |
|---|---|
| Can I use a joint account to reach the deposit faster? | Yes. A joint mortgage‑saver account allows you to combine incomes, but each person is still covered by the €100 000 DGS limit individually. |
| Do I need a separate “deposit” account? | Not mandatory, but a dedicated account helps you track progress and avoid accidental spending. |
| What if house prices rise faster than expected? | Add a 5 % price‑inflation buffer to your target and re‑calculate monthly contributions. You can also increase contributions when you receive bonuses or tax refunds. |
| Is the HTB rebate taxable? | No. It is a tax credit, reducing your PAYE liability; any unused portion can be carried forward for up to two years. |
| Can I withdraw from a TFSA for the deposit? | Yes – TFSA withdrawals are tax‑free and can be used for any purpose, including a mortgage deposit. |
Conclusion
Saving a €30 000‑€50 000 deposit in 36 months is ambitious but achievable with a clear plan:
- Define your target price and calculate the exact deposit plus a modest buffer.
- Budget rigorously to free 20‑25 % of net income for savings.
- Stack tax‑free and high‑interest accounts (TFSA, MortgageSaver, regular savings).
- Tap government schemes – HTB and First Home – to shave up to €45 000 off the amount you need to save.
- Protect your money through DGS‑covered banks, two‑factor authentication, and disciplined account choices.
By following the roadmap above, you’ll be well positioned to walk into a lender’s office with a solid deposit, a pre‑approval in hand, and the confidence that your savings are safe and working for you. The Irish property market may be competitive, but with the right strategy you can secure your perfect home within three years.