askpaul – EPISODE 1! Mortgage Changes For First Time Buyers in Ireland

(electronic music) – Hi and welcome to
episode one of Ask Paul. As promised, today’s episode is gonna focus purely on mortgages. There’s been an awful lot of changes from the central bank recently. I suppose the main thing
that’s changed here is for first-time buyers. The deposit they now required is only 10%. It was, previously, 20%. These changes come in effect
from the first of January 2017. The other good news first-time buyers is that the tax rebate
initiative is still there, so that’s a maximum of 20,000. It’s 5% of the purchase price of the home, and that can be rebated
over the last four years from revenue. To give you an idea of the
figures if you move to 400,000, it’s 20,000 worth of a tax rebate, and that can go towards your deposit. I suppose one thing to consider
here is that just remember this is only available
for first-time buyers that are buying new properties. It doesn’t actually take effect
for those first-time buyers that are buying second-hand properties. The bad news, I suppose, is
for the second-time buyers in the marketplace. Been no changes here from
revenue or from, sorry, from the central bank in relation to this. So you still have to have a 20% deposit if you’re trading up. The thinking behind this,
I suppose folks, is really that the central bank and
government really think that second-time buyers maybe
have a little bit of value in their house where first-time
buyers, obviously, don’t. I think it’s a little bit unfair
on the second-home market. Especially those who bought
properties in the late ’90s or middle ’90s purely,
simply because enough of those people probably
had negative equity. Though there’s been a big
increase in house value, they were still, probably, in
the negative equity market, or if they’re maybe on
par, there wouldn’t be much of a return in selling their property. So that’s one little bit
of a negative out there. First-time buyers, we’re
gonna come back with a video in the next couple a weeks related to how to submit your application
form to a lending institute. Most lending institutions that
actually decline applications are over very, very, very silly things. So I’m gonna take you through
a very streamlined process of how to get your application ready, how to get your accounts in order, so make sure you click back in in the next couple of
weeks have a look at that. We aren’t gonna discuss lenders
or rates because, obviously, these changes come in effect
for the first of January, so we’re gonna start that in January. We’re gonna look at lending institutions. Which lenders are the best? Which lenders offer the
best kind of discounts, or I suppose, some offers that they have so make sure you check
back in as well in January. Make sure you hit the
subscribe button on YouTube to figure out what we’re doin’ and keep an eye on what we’re doin’ and please like and share. If you know any first-time
buyers, please put them on the comments box
below and let them know about our videos. Thank you. (electronic music)

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