Here's how it all works

• What is a mortgage?

  Think of a mortgage as a home loan; a way to get your feet on the property ladder - the first step on the way to getting out of renting, or living with parents and getting a home of your own. Let’s look at a couple of basics. 

  Basically a mortgage is a loan used to buy a home.  And the home becomes the security for the mortgage loan. A bank agrees to lend you money to buy, build or renovate a home and you agree to repay it.

  When you apply for a mortgage with us we’ll give you what’s called an Approval in Principle. This shows how much we’re able to lend you based on the information you’ve given us. Of course, this isn’t a loan yet, but you can go house hunting confident of what you can afford.

  With our mortgage calculator it’s easy to find out how much you could borrow. Calculate Mortgage Online

  There’s also rates to consider. We’ve competitive fixed and variable rates, but what do these mean?

  Fixed Rate or Variable Rate?

  You can chose between a fixed interest rate, a variable one or a combination of both.

  A fixed rate mortgage has a rate of interest which doesn’t change for a set period of time, so you know exactly how much you pay every month. A fixed rate makes it easier to budget for payments. But remember it’s fixed for a certain time like three, five or seven years and if you change it before the end, we may charge you a fee. 

  A variable rate mortgage has a rate of interest which can change, for example, if we change our rates. We will always tell you in advance if it is going to go up or down and how your monthly repayment amount will change as a result.

  So you have approval in principle, what’s next?

  You go house hunting, find a home, make an offer and hopefully it goes sale agreed. When that happens let us know and we’ll guide you through the next stage. That includes things like getting the home valued by one of our valuers, getting it insured, telling us who your solicitor is, getting a mortgage protection policy in place and so on. It sounds daunting but we’ll help you through it all. 

  When everything’s done we’ll send you a contract – what we call a letter of offer - to sign. Your solicitor will also get a copy and they’ll take you through it before you sign it and they send it back to us.  

• Saving a deposit

  Set a goal

  Work out how much it will cost to buy your first home, then set a savings target. You'll need to have at least 10% of the price of a house as a deposit, plus more for stamp duty and legal fees. Divide this figure into a sensible savings amount per month or week, depending how often you get paid.

  Check out our savings calculator to get a clear idea of the deposit you need. It will show you how much you need to be saving each month to meet your target.

  Deposit calculator >

  Open a savings account

  We have lots of different saving accounts to choose from. Check out the different savings options to see which one is right for you. If you have a habit of dipping into your savings, maybe set up a notice account where you have to give notice before taking money out.

  Savings options >

  Make a savings plan
  

  Take a look at how much you spend to see exactly where your income is going. Break down your spending into buckets to see where you can cut back.

  Keep up a good credit record by repaying any loans or credit cards on time. 

  Focus on your basic income. You can’t always rely on overtime payments, so we won’t count them.

  You can also take a deep dive into your finances with the My Money Manager tool to spot where your budget is going. It’s on our mobile app. This tool tracks your spending in easy charts and graphs, making it simple to see where you’re spending your money. You can also nick name your savings accounts so you have a target to aim for.

  Stay motivated
  

  Keep motivated when you’re cutting back on spending. Remind yourself why you’re saving…whatever inspires you and keeps you focused. You can name your savings account to help keep you motivated.

  The little things
  

  You’ll be surprised how much you can save when you shop around. Ring around for quotes on your broadband, electricity, and car insurance. Write down all of your expenses and create a realistic weekly budget, then pay yourself in cash every week and stick to it.

  Don’t forget to treat yourself
  

  Set aside some savings for something fun. Little treats will keep you focussed on goals.

• Talk to one of our experts

  Pop into a branch, make an appointment on aib.ie or ask us to call you back when you can speak with one of our Mortgage Experts.

  You don’t need any documents or deposit saved to chat to an Expert. We’ll make sure you’re on the right track from the start by helping you make a plan to get the deposit together. If you can’t make it to a branch, we can come to meet you, so this may also be an option for you. 

  Get your paperwork together

  Once you’ve saved your deposit you will need to show us that you can afford to keep repaying the mortgage.  Your Mortgage Expert will tell you exactly what documents you need to give us, such as payslips, bank statements, credit card bills and proof of saving or gifts..

  Apply for Approval in Principle

  Once you have your deposit together you can apply for a mortgage and receive an Approval in Principle. This is when we agree, in principle, to give you a mortgage, based on the information you’ve given us. Then you’ll know how much you have to spend on your new home. There will be more conditions you’ll have to meet, but we’ll make these clear so you’ll know what else you have to do before we can lend you the money. The approval lasts for 12 months.

  You can apply online, over the phone, or in a branch with one of our Mortgage Experts. If you’re unsure about anything, why not book an appointment online or pop into a branch to speak with one of us?

  Once our Mortgage Expert gives you approval in principle, you’re well on your way. We’ll make all the next steps as easy as we can for you. We’ll send you a link to My Mortgage, which lets you control the rest of your application in your own time.

  ✔  My Mortgage works on your mobile 
  ✔  It takes you step by easy step through everything 
  ✔  It's interactive with messages and uploads

  Book an appointment >