Many first time buyers in Dublin are set to take out a mortgage in 2023 - and a leading team of advisors have given helpful tips to make the mortgage journey a smoother process.
Ezfees Financial, located in Waterford, are a team of specialist Mortgage Advisors and Qualified Financial Advisors. Speaking to Dublin Live this week, Marian Keane (Finance Officer) and Laura Hayes (Senior Mortgage Advisor) of Ezfees said that 2023 is a good time to buy a Home.
Marian, referring to the Central Bank of Ireland, said that it’s a good time for First Time Buyers as they can now borrow up to 4 times their income. She said: “The biggest change from the Central Bank of Ireland from January 1 this year is that First Time Buyers can now borrow up to 4 times their income which is increased from 3.5 times previously."
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Marian continued: “This means, given the rise in house prices, it will allow people to qualify for a higher mortgage and ultimately help to purchase their new Home”. The Central Bank of Ireland has also introduced what’s called ‘Macroprudential Mortgage Measures’ in 2015 to safeguard economic and financial stability.
These measures set limits on the amount of money that can be borrowed to buy residential property using: 1) Loan-to-Income (LTI) limit and 2) Loan-to- Value (LTV) limit. The Loan-to-Income limit restricts the amount of money you can borrow to a maximum of 4 times gross income for First-Time Buyers. e.g., a couple with a combined income of €100,000 can borrow up to a maximum of €400,000.
The Loan-to-Value limit requires you to have a minimum deposit before you can get a mortgage. The size of this deposit depends on which category of buyer you are, and First-Time Buyers and Second Subsequent Buyers need to have a minimum deposit of 10%.
When asked about how Ezfees can help First Time Buyers, Marian explained that they are a nationwide business and that they can talk to First Time Buyers both in person and over the phone. She explained: "For First Time Buyers it's really about hand-holding them through the process and giving them that support."
Laura Hayes added that the process of going for a Mortgage for First-Time Buyers can be a daunting experience but explained that it is the benefit of going to a broker who will make it a much easier journey. She said: "It can be quite daunting for First-Time Buyers, it's a big loan, the biggest you'll ever have in your life. As a broker, we research different lenders in the market so we can get the best possible deal for our clients."
Ezfees also has an excellent Online Mortgage Application system which helps to reduce stress when going through the Mortgage Journey. According to Marian, the Online Application System also allows clients to upload their documents more easily meaning clients can keep an eye on how the Application is progressing as well.
According to both Marian and Laura, there are several things that all First-Time Buyers should do before going for a mortgage. These key tips include: demonstrate savings, knowing your employment status when applying for a mortgage (full time, contract etc..), find what is affordable to you, good management of your bank accounts and spending habits, credit checks, additional cost considerations for example stamp duty and furnishing your new home, and to seek independent advice through a Mortgage Broker.
Laura added: "A big part of getting a mortgage is showing that you can afford it, so for example if it's a €1,000 mortgage repayment a month, you show them that for the last six months at least you have been saving that amount. This gives the lender reassurance that you can afford to pay the Mortgage repayment."
Meanwhile, it is also important for First-Time Buyers to have more than the 10% deposit required to pay for Legal Fees, Stamp Duty and to furnish their home and to always seek advice from Mortgage Brokers.
For more information and advice visit www.ezfeesfinancial.ie
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