Hey guys, I want to talk to you about mortgages, and i’m going to share three simple habits that anyone can put into place
that will set you up for success when it comes to speaking to your bank about
getting a mortgage.
KBC recently did a survey which found that 32%
of Irish adults want to buy a home in the next two years. 32%! That’s 8 times higher than what’s usually seen in a normal housing market
but it sure isn’t easy to buy a home in Ireland these days. With rents so high it makes
it really really difficult for people to save up for that all-important deposit,
but i’m going to share three simple habits that anyone can put into place
that will help set you up for success when you go to speak to your bank.
#1 – set up a regular saver account Interest rates are really low at the
moment but there is some decent value out there if you know where to look EBS is offering a 3% return
to regular savers and KBC is offering a 2.5% return to regular savers who have a
current account with the bank. So let’s say you put €300 away every month
for a year, at the end of the year you’ll have over €3,600 saved and that can of
course go towards your deposit fund. But more importantly, it will show the bank that you’ve got a discipline saving strategy in place and that will really help your
chances of getting approval You can sign up for a brand new savings
again today on bonkers.ie. link is in the description.
#2 – pay your rent by standing order When the bank is considering you for a mortgage they’re going to want to see what’s known as repayment capacity. Basically they want to have confidence
that you’re not going to miss any of your repayments once they approve you
for a mortgage, and the best way to show repayment capacity is with your rent. But
it’s really important that you pay your rent by standing order and not in cash.
If you pay in cash you’re not going to have any proof to the bank that you pay
rent on time, in full, every month. #3 – regularly compare mortgage rates Although Ireland’s mortgage rates are
higher than the EU average, there have been some good cuts this year and on bonkers.ie you can easily see which bank is offering the best rate for your
specific requirements. Maybe set up a calendar reminder to check the rates
every week – it’ll just take five minutes and we’ll give you a good understanding of
what represents good value and it’ll give you an idea of which bank you
should approach first when it comes to seeking mortgage approval. So they have a guys, it’s notoriously
difficult to get a mortgage in Ireland these days but whatever your
circumstances or goals, by putting those three habits into place; that’s
setting up a regular saver account, by paying your rent by standing order and by
regularly comparing mortgage rates, you will set yourself up for success and give
yourself a good shot at getting the mortgage you want.