What many first-time buyers overlook

Saving for a deposit is often the biggest focus when you’re preparing to buy a home. But the deposit is only part of the picture. There are several extra costs involved in buying property in Ireland, and if you’re not prepared for them, they can come as an unwelcome surprise.

Here are the most common hidden costs to plan for.

Stamp Duty

Stamp duty is a tax you must pay when buying property. In Ireland, it’s usually 1% of the purchase price up to €1 million and 2% on anything from €1m – €1.5m and then a whopping 6% on amounts over €1.5m. So, if your home costs €350,000, expect to pay €3,500 in stamp duty. This needs to be paid before your name is registered on the property.

Note: If you’re buying a new build, VAT is often included in the price but is not part of the stamp duty calculation.

Solicitor Fees and Legal Costs

You’ll need a solicitor to handle the legal side of your purchase. Legal fees typically range from €3,000 to €5,000 plus VAT. Quotes usually include a breakdown of the solicitors fee plus other legal costs like property registration, title searches and bank transfer fees. 

Stamp Duty and Legal Fees are costs that you need to demonstrate you can pay when first applying for your mortgage. So when people think of saving a 10% deposit, you actually need to save 11% + approximately another €3,000.

 

Property Valuation and Survey

Once you are Sale Agreed, your lender will arrange a valuation of the property. This usually costs between €150 and €200.  A separate structural survey, while not always required by the bank, is highly recommended if you’re buying a second-hand home. This can cost €500 to €1,000 and if it identifies significant issues with the property could save you a lot of money in costly repairs down the line.

 

Mortgage Protection and Life Insurance

Mortgage protection is a form of life insurance and is required before you can draw down funds. It pays off your mortgage if you pass away during the term. Premiums vary based on age, health and the amount borrowed, so it’s worth comparing quotes or speaking to an advisor.  Where you have medical history or underlying conditions it is highly advised to make your life insurance application when you are first making your mortgage application, as it can be a draw out process. (If you have no medical history or underlying conditions the application is usually made once you have gone sale agreed as it only takes a week or so)

 

Home Insurance

Your lender will require proof of buildings insurance before allowing you to close the deal. Expect to pay around €300 to €600 per year depending on the location and rebuild cost. You may also want to add contents insurance once you move in to secure the items in your home.

 

Moving and Set-Up Costs

Moving into a new home usually comes with more expenses than expected. These might include:

  • Hiring a moving company or renting a van. 
  • Furniture, appliances and basic repairs. 
  • Painting or decorating. 
  • Utility set-up and bin charges. 
  • Local Property Tax. 

It’s sensible to allow at least €2,000 to €5,000 for this stage, especially if you’re starting from scratch.

 

Ongoing Costs After You Move In

Once you’re in your new home, there are ongoing costs to be aware of:

  • Maintenance and repair bills.
  • Local Property Tax (LPT).
  • Higher utility costs.
  • Management fees, if applicable.

Factoring in these expenses early helps avoid financial stress later.

 

A Buffer for the Unexpected

Things can go wrong in the early days. Boilers break. Roofs leak. Appliances stop working. That’s why we recommend keeping a buffer of 3 to 6 months’ take home pay as an ‘Emergency Fund’, so you’re not relying on credit if something crops up.

Exciting but Nerve Wrecking

There’s no doubt buying a home is a major financial milestone. But it’s important to go beyond the deposit when planning your budget. A little preparation now can help avoid pressure later on. If you’re not sure how to plan for all the costs or want guidance on mortgage protection and insurance, our advisors are here to help.

Planning for Today, Tomorrow and the Unexpected

At Lynx Financial Services, we believe financial planning shouldn’t be complicated or overwhelming. That’s why we take a personalised, straightforward approach, helping you save for today, tomorrow and the unexpected.
 

No jargon. No hidden fees. Just clear, honest advice tailored to your goals.
 

Whether you’re looking to grow your investments, plan for retirement, protect your family or secure the right mortgage, our expert advisors are here to guide you every step of the way.
 

Your financial security is our priority and as a member of Brokers Ireland, regulated by the Central Bank of Ireland, you can trust that you’re in safe hands.
 

Wherever you are in life, whatever your financial ambitions, we’re here to help.

 

 📩 Ready to start the conversation? Get in touch for a no-obligation chat.

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