Deposit for a House in Ireland: How Much You Need and Where It Can Come From

The deposit is the first wall most first-time buyers hit. In a market where the national median house price is €390,000, a 10% deposit is €39,000 — and that's before accounting for the additional €8,000 to €10,000 needed to cover stamp duty, legal fees, and other closing costs.

But the rules around what counts as a valid deposit source, and how state schemes interact with that requirement, are more flexible than most buyers initially assume.

The Minimum Deposit: 10% Under Central Bank Rules

The Central Bank of Ireland's Loan-to-Value limit requires first-time buyers to have a minimum deposit of 10% of the property's purchase price. The lender can advance a maximum of 90% LTV.

On a €350,000 purchase, the minimum deposit is €35,000.

There's no upper limit to the deposit you can provide — a larger deposit means a smaller mortgage, lower monthly repayments, and access to lower LTV mortgage rate tiers. But 10% is the minimum the Central Bank mandates.

What Counts as a Valid Deposit Source

The key requirement is that the deposit comes from "non-borrowed" sources. You cannot take out a personal loan or credit facility and use that as your deposit — lenders check this carefully and any unexplained large credits to your account in the months before application will be questioned.

Valid deposit sources include:

Personal savings: The most straightforward and preferred source. Lenders like to see a consistent saving pattern over the preceding 6 to 12 months — a gradually building balance that demonstrates your financial discipline and ability to save the equivalent of a monthly mortgage repayment.

Parental gift: A gift from parents or other family members is acceptable. The giftor typically needs to sign a letter confirming the funds are a gift (not a loan to be repaid). Some lenders require confirmation that the giftor has no claim on the property. Gift letters have a standard format that your solicitor or lender can provide.

An inheritance: An inherited lump sum can form part or all of the deposit, provided you can document the source.

Proceeds from selling assets: If you sold shares, a car, or other significant assets, those funds can contribute to the deposit — provided the sale is documented and the funds have been in your account long enough that they appear in your bank statements.

The Help to Buy refund: Revenue's HTB refund of up to €30,000 counts as an unborrowed equity contribution and satisfies the LTV deposit requirement. On a €300,000 new build, the HTB refund alone can cover the full 10% deposit.

The First Home Scheme equity: The FHS contribution also counts as unborrowed equity toward the LTV calculation.

The Local Authority Home Loan Deposit Rule

The LAHL has a slightly different requirement. Of the 10% deposit:

• At least 3% must come from personal savings held for a minimum of 12 months
• The remaining 7% can come from a parental gift or other unborrowed source

This is somewhat more permissive than some commercial lenders, who may require more of the deposit from documented personal savings alone.

How Much Should You Actually Have Saved?

The 10% deposit is the minimum for the mortgage. But it's not the total cash you need at closing. To avoid a nasty shock at the final stage, your total cash target should be:

Deposit (10%) + Closing costs (approximately 2.5% of purchase price)

On a €350,000 purchase:

• Deposit: €35,000
• Closing costs: ~€8,500 (stamp duty €3,500, solicitor €2,460, PRA fees €875, survey €450, bank valuation €150, insurance ~€650, miscellaneous ~€415)
• Total target: ~€43,500

Building toward €43,500 — not €35,000 — is the correct target.

The Help to Buy Impact on Your Savings Target

If you're buying a new build and are eligible for Help to Buy, Revenue's refund (up to €30,000) goes directly to the developer as a credit against the contract deposit. This means your personal savings requirement drops significantly.

On a €350,000 new build with a full €30,000 HTB refund:

• Total deposit needed: €35,000
• HTB contributes: €30,000
• Personal savings needed for deposit: €5,000
• Closing costs (from personal savings): ~€8,500
• Total personal savings target: ~€13,500

This is the single most powerful effect of the Help to Buy scheme — it doesn't just reduce your upfront costs, it makes the entire purchase viable for buyers who couldn't otherwise accumulate a deposit while paying high Dublin rents.

Building Your Deposit While Renting in Dublin

This is the core challenge. In Dublin, average rents run €1,800 to €2,800 per month for a one-bedroom apartment. After rent, tax, and basic living costs, the monthly surplus available for savings is limited — often €500 to €1,000 for a median-income single earner.

At €800/month savings, reaching a €43,500 target takes over four years. At €1,500/month (a dual-income couple with controlled rental costs), it takes under three years.

Strategies that accelerate the timeline:

Optimise tax returns. For PAYE workers, ensure all allowable credits are being claimed. If you've had rental income from a room in your rented property under the rent-a-room scheme, ensure the tax treatment is correct.

Maximise DIRT reclaims. DIRT on deposit interest can be reclaimed as part of the HTB application — but only if you're buying a new build. If you're targeting a second-hand property, DIRT doesn't factor into HTB.

Use a high-interest savings account. DIRT is now 33% on deposit interest, so the effective net rate is modest. But even at 2.5% net, a €30,000 deposit earns €750 annually — not transformative, but meaningful.

Consider the timeline carefully. In a market rising 6.8% per year, a property worth €390,000 today will be approximately €416,000 in one year. Saving faster than the market rises is difficult. Which is why HTB and FHS exist — to allow buyers to enter the market without needing to fully close the gap through savings alone.

The Ireland First-Time Home Buyer Guide includes a deposit savings calculator, a help to buy eligibility checker, and a full breakdown of how different deposit sources interact with lender requirements.

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