Putting down a larger house deposit

yeahbut

Hi all, Is it possible to put down more than 20% deposit, in order to lessen the mortgage? (It's not an investment property). Thanks in advance

Blacktie.

yeahbut wrote:

Hi all, Is it possible to put down more than 20% deposit, in order to lessen the mortgage? (It's not an investment property). Thanks in advance

Yes

Graham

yeahbut wrote: »

Hi all, Is it possible to put down more than 20% deposit, in order to lessen the mortgage? (It's not an investment property). Thanks in advance

Shouldn't be a problem, in fact you may qualify for a lower interest rate as a result of your larger deposit.

If you're looking for the FTB buyers grant, there are limits on deposit sizes.

Yes absolutely.

20% for a non first time buyer is the minimum.

If you have the cash you can put down as big a deposit as you want.

Some things to consider: if it took a long time to save that cash you might want to keep some aside as a rainy day fund - you won't be able to get it out of the value of the house easily.

A smaller mortgage might get a better loan rate.

Take some advice before doing anything though.

yeahbut

Thanks for replies -

Its not a FTB situation.

Definitely a rainy day fund makes sense, it'd be terrible just to hand it all to the bank.

evolving_doors

yeahbut wrote: »

Thanks for replies -

Its not a FTB situation.

Definitely a rainy day fund makes sense, it'd be terrible just to hand it all to the bank.

You'll have to do the maths though.just some random amounts for an example... the bank will punch in more accurate figures.

E.g. Compare the difference between putting a 30k and a 40k deposit.... sure the bank gets an upfront extra 10k... but over the lifetime of the mortgage how much would the reduced payments save you?
If it was reduced by say €200 a month then you've made back that 10k in less than 5 years (assuming you put aside the 200 every month) PLUS you continue to save 200 until the mortgage is finished.

Or you could pay the same monthly but reduce the mortgage term by a couple of years. It mightnt mean much now but it would be handy to have finished paying a mortgage just when 'potential' kids start college!

Talk to the bank or broker. People often just go with one deposit figure in mind and take what they get. Discuss longer and shorter terms, different deposits and lone to value rates with different banks.

yeahbut

yeahbut wrote: »

Definitely a rainy day fund makes sense, it'd be terrible just to hand it all to the bank.

Just to point out you wouldn't be giving it to the bank you would be giving it to the person you are buying the house from.

You should pay as much of the house upfront as you can (that what the deposit is really) but not all of your savings, definitely keep a reasonable amount for emergencies, other purchases etc. For example if you had 60k in savings (random figure) I would definitely keep at least 10k if not a little more in reserve.

3_BOoYA_X

Graham wrote: »

If you're looking for the FTB buyers grant, there are limits on deposit sizes.

Do you details on this? I can't seem to find any restrictions on the deposit amount / percentage

Graham

3_BOoYA_X wrote: »

Do you details on this? I can't seem to find any restrictions on the deposit amount / percentage

I think this is it

You must take out a mortgage of at least 70% of the purchase price

http://www.citizensinformation.ie/en/housing/owning_a_home/help_with_buying_a_home/help_to_buy_incentive.html

From revenue:

Mortgage
You must take out your mortgage on the property with a qualifying lender. This loan must be used only for buying or building the property. The loan must be at least 70% of the purchase value of the property.

http://www.revenue.ie/en/property/help-to-buy-incentive/what-type-of-property-qualifies.aspx