When it comes to mortgage deals, there are many different terms, so if you’re looking for a mortgage that works for you, it’s worth keeping an eye on what the terms of your loan contract say.
These terms, known as a terms agreement, tell the bank what you can expect from your home.
Terms agreement 1 You can expect: You’ll be asked to make a deposit of between €200 and €300 per month, with a loan to cover the difference between that and the loan you are currently on.
The loan will be backed by a guarantor and will be repaid if you make a down payment of between 10 per cent and 20 per cent of the value of your home, whichever is greater.
It will be financed by the mortgage insurer, so it’s more flexible than the terms you might have expected.
2 You’ll need to pay a deposit amounting to about €2,000, which can rise to around €3,000 if you opt for a 30-year mortgage.
It’s likely to be more expensive, though, if you have a longer term mortgage, or a fixed term mortgage.
This is why it’s important to get the loan agreement from your lender, rather than looking for the exact amount you’re getting.
3 You’ll have to pay up front for the first two years.
You’ll then have to repay this balance over the period of your mortgage, which means you’ll have the option of taking out another loan if the interest rate drops too much.
The final payment will be the interest you receive on your deposit at the end of the mortgage.
4 If you are going to be refinancing, you’ll need a 30 per cent down payment.
This will help to keep the interest rates at a manageable level.
5 You’ll also need to make monthly payments of up to €15,000 for your first three years, before you can get the same amount of money back from your guarantor.
6 There will be a clause in your terms agreement allowing for the loan to be extended if you decide to move to a smaller property.
7 The interest rate on your mortgage will be set by the rate of inflation and the amount you are able to borrow will depend on the number of years remaining on your loan.
8 The terms are designed to ensure that you’re repaid on time, meaning you’ll pay off your mortgage within a reasonable period of time.
9 The term of the loan will also depend on your income and the size of your deposit.
If you have more money than you need to cover your deposit, you may have to make additional payments.
The average loan amount for a typical home sale in Ireland is €5,000 to €7,000.
If the interest on your money has increased by more than 50 per cent in three years from the previous period, you can choose to make an early repayment and have your loan repaid before the interest starts to rise.
You can choose between two options: either making a deposit up front, or making a loan payment upfront and then making a monthly payment later.
The interest will be paid off over the next few years, and the lender will take care of any remaining payments after that.
10 Interest rates vary across the country.
You will have to negotiate your interest rates for yourself, but if you live in Dublin or Limerick, you should expect to pay between 0.5 and 1 per cent more than in other cities.
The minimum interest rate for a loan of €200,000 in Dublin is 3.75 per cent.
In Dublin, it will be 6.75 to 7.25 per cent, and in Limerick it will average 4.75 and 6.25.
In the southern county, Co Carlow, you might pay 2.25 and 2.75 percent.
Source: IrishCentral.ie The term terms agreement will be sent to you before the mortgage is signed, so you’ll get to read it before you sign.
It tells you what you should pay and how much, but it’s not an exhaustive list of terms you’ll want to consider before you buy a home.
It also won’t tell you how much you will be paying for the property, which will depend a lot on your finances.
What to look out for When you sign up for a home loan, it should be noted that the terms agreement says that if you want to make any change to the terms, the bank has to give you a deadline to negotiate it with the bank.
If your terms aren’t clear, there may be a reason for this.
If this is the case, it may be wise to contact your lender first.
You could also contact your local local authority to check that they are keeping up with the latest mortgage rates.
What’s more, your local bank may also provide you with a list of mortgage providers that they use to offer loans.
For example, you could use this to find out what mortgages are offered by your local council, as well as other information.
To find out more about mortgages,