Buying a new build property in Ireland involves a fundamentally different mortgage process compared to purchasing a second-hand home. You’re dealing with stage payments, off-plan valuations, build delays, and different contract structures. This guide covers everything specific to securing a new build mortgage in 2026.
How New Build Mortgages Differ
When you buy a second-hand property, the sequence is straightforward: you agree a price, get mortgage approval, exchange contracts, close, and move in. With a new build, the timeline stretches over months or years, and your mortgage approval must accommodate stage payments and potential completion delays.
Key differences:
- You may purchase off-plan before construction starts
- Mortgage funds release in stages as the build progresses
- The property valuation happens at planning stage, with revaluation at completion
- Help to Buy can provide up to €30,000 towards your deposit
- New builds achieve A-rated BER, qualifying for better mortgage rates
- Build delays can affect your mortgage approval expiry
The Central Bank treats new builds the same as second-hand properties for loan-to-value and loan-to-income rules, but lenders structure the drawdown differently.
Off-Plan Purchases and Valuations
When you buy off-plan, you’re purchasing based on plans, brochures, and a show home. The property doesn’t exist yet. Lenders handle this through a two-stage valuation process.
Initial valuation at planning:
Your lender commissions a valuation based on the architect’s plans, specifications, and location. The valuer assesses what the completed property will be worth. This determines your maximum loan amount.
If you’re buying a three-bed semi-detached house in Swords for €425,000, and the valuer agrees that’s reasonable for the finished product, a first-time buyer can borrow up to 90% (€382,500), assuming income supports it.
Completion valuation:
Before final drawdown, the lender sends a valuer to inspect the finished property. They verify:
- Construction matches the approved plans
- Quality meets standards
- No significant defects
- Market value hasn’t dropped substantially
If the completion valuation comes in lower than expected, your mortgage offer reduces accordingly. This rarely happens with established developers, but if the market softens during construction, you may face a shortfall.
Stage Payment Structure
New build purchases involve stage payments released as construction progresses. The standard structure:
For first-time buyers using Help to Buy:
- Deposit (10%): Your cash plus Help to Buy rebate
- Drawdown on completion: Remaining 90% when you take ownership
For investors or second-time buyers:
Developers may require:
- 10% deposit on contract signing
- 10% at foundation stage
- 10% at roof stage
- 70% on completion
Your mortgage approval must specify that funds release in stages. Not all lenders offer stage payment facilities, which limits your options.
Banks offering stage payments in 2026:
| Lender | Stage Payments | Max LTV | Notes |
|---|---|---|---|
| AIB | Yes | 90% FTB | Standard for new builds |
| Bank of Ireland | Yes | 90% FTB | Requires progress inspections |
| Permanent TSB | Yes | 90% FTB | Most flexible terms |
| Avant Money | Limited | 90% FTB | Completion drawdown only |
| ICS Mortgages | No | 80% | Completion only |
Most first-time buyers don’t need stage payments because Help to Buy covers the 10% deposit and the 90% mortgage releases on completion. If you’re putting down more than 10%, confirm your lender will hold the balance until completion rather than requiring it upfront.
Help to Buy Scheme and New Builds
The Help to Buy scheme exists exclusively for new builds. It refunds income tax and DIRT paid over the previous four years, up to 10% of the property price or €30,000, whichever is lower.
Eligibility 2026:
- First-time buyer
- Purchasing or self-building a new property
- Property value under €500,000
- You’re taking out a mortgage of at least 70% of the price
- You’ll live in it as your primary residence
How it works with your mortgage:
You claim Help to Buy through Revenue’s online system after paying your deposit. Revenue pays the rebate directly to your solicitor, who applies it to the purchase price. This counts as part of your deposit.
Example: €400,000 new build house in Portlaoise.
- Required deposit (10%): €40,000
- Help to Buy rebate: €30,000
- Your cash deposit: €10,000
- Mortgage (90%): €360,000
Without Help to Buy, you’d need €40,000 in savings. With it, you need only €10,000 cash.
Your lender must see evidence of the Help to Buy approval before issuing a final mortgage offer. Include the Revenue statement with your application.
BER Ratings and Green Mortgages
All new builds in Ireland must achieve a minimum BER of A3 under current Building Regulations. Most developers deliver A2 or A1 ratings. This qualifies you for green mortgage rates, which sit 0.1% to 0.15% below standard rates.
Green rate comparison September 2026:
| Lender | Green Rate (5-year fixed) | Standard Rate | Annual Saving on €350,000 |
|---|---|---|---|
| Avant Money | 3.39% | 3.54% | €525 |
| Haven | 3.54% | 3.69% | €525 |
| AIB | 3.65% | 3.75% | €350 |
| Bank of Ireland | 3.69% | 3.79% | €350 |
Over a 30-year mortgage, that 0.1% to 0.15% difference saves €8,000 to €12,000 in interest.
Your solicitor provides the BER certificate at closing. The lender applies the green rate once they receive it. Some lenders approve the green rate provisionally based on the developer’s commitment to deliver an A-rated property.
The Purchase Process Timeline
Understanding the timeline prevents surprises and ensures your mortgage approval remains valid.
Month 1-2: Reservation and contract
You pay a booking deposit (typically €5,000 refundable) and receive a contract pack. Your solicitor reviews the contract, planning permission, and title. You apply for mortgage approval in principle.
Month 2-3: Mortgage application
Submit full mortgage application with:
- Proof of income (payslips, P60)
- Bank statements (6 months)
- ID and proof of address
- Contract of sale
- Developer’s brochure and plans
- Help to Buy approval (if applicable)
Month 3-4: Mortgage approval
Lender issues approval in principle, commissions valuation based on plans, and issues formal loan offer. Validity: 6 months, extendable.
Month 4-6: Construction begins
Developer starts building. You monitor progress. If using stage payments, your solicitor coordinates releases.
Month 6-12: Build period
Typical build time for houses: 6-9 months. Apartments: 12-24 months. Keep your lender updated on progress. Request approval extensions if needed.
Final month: Completion
Lender commissions completion valuation. Once passed, they issue closing funds to your solicitor. You sign final documents and take ownership.
Total timeline: 8-15 months from reservation to keys for houses, 18-30 months for apartments in larger developments.
Common Issues and How to Handle Them
Build delays:
The most common problem. Irish weather, material supply issues, and labour shortages cause delays. Developers typically insert a long-stop date in contracts giving them 12-18 months beyond the estimated completion.
Your mortgage approval typically lasts 6 months. If the build runs over, request an extension from your lender before expiry. Most lenders grant 3-month extensions without re-underwriting, provided your circumstances haven’t changed.
If you’re renting and your lease expires before completion, you may need short-term accommodation. Factor this into your budget.
Price increases:
Your contract fixes the price. Developers cannot increase it once you’ve signed. However, if you reserved early and the developer increases prices for later phases, you’re protected by your contract.
Specification changes:
Developers sometimes substitute materials or finishes if supply issues arise. Your contract should specify that changes require your consent, and any cost savings must be refunded. Your solicitor reviews all amendment notices.
Snags and defects:
Walk through the property before closing. Document any defects with photos. Your contract includes a snag list process. Don’t close until major issues are resolved.
Premier Guarantee or Homebond covers structural defects for 10 years. Verify this insurance is in place before closing.
Negative equity risk:
If property values drop during construction, you could owe more than the property’s worth. This is rare but happened during 2008-2012. Your completion valuation protects the lender, but you’re exposed if you need to sell shortly after purchase.
Estate Charges and Management Companies
Almost all new developments involve annual estate charges for common areas, green spaces, and roads until the local council takes them in charge.
Typical charges: €400-€800 per year for houses, €1,200-€2,500 for apartments (including building insurance).
Your lender factors these into affordability calculations. Budget for them from day one. Your solicitor verifies:
- Management company structure
- Reserve fund status
- Taking in charge timeline
- Your obligations as a member
Apartments built under multi-unit development regulations require owners to join the management company. You cannot opt out.
Mortgage Approval Checklist for New Builds
Before applying, gather:
- Contract of sale: From developer
- Planning permission: Your solicitor verifies this
- Developer’s brochure: Showing layout, finishes, specifications
- Site map: Showing plot number if buying a house
- BER commitment: Developer’s commitment to deliver A-rated property
- Help to Buy approval: If applicable
- Proof of deposit source: Bank statements showing savings history
- Income documentation: Latest 3 payslips, P60, employment contract
- Credit report: Check for errors before applying
Your lender needs to see that you have genuine savings for your deposit portion. Help to Buy doesn’t count as savings in their eyes—they want to see you’ve demonstrated ability to save consistently.
Choosing Your Lender
Not all lenders suit new build purchases equally well.
Best for first-time buyers with Help to Buy:
- Permanent TSB: Most flexible with stage payments and extensions
- AIB: Quick approval times, standard stage payment facility
- Bank of Ireland: Strong completion support, good green rates
Best for investors:
- ICS Mortgages: Higher LTV for investors (80%), but completion drawdown only
- Bank of Ireland: Offers stage payments to investors
Best rates:
- Avant Money: Lowest rates but limited stage payment facility
- Haven: Competitive green rates, good for straightforward purchases
Get mortgage approval in principle before paying a booking deposit. This confirms you can borrow what you need and avoids losing your deposit if you can’t secure financing.
Switching After Purchase
Once you’ve closed and lived in your new build for a year, you can switch to a lower rate. New builds attract switcher campaigns because you’re a low-risk borrower with a modern, A-rated property.
Expect cashback offers of €2,000-€5,000 plus rate reductions of 0.2%-0.4% if you switch within 2-3 years. The value of your property will have been recently confirmed, making the switching process faster.
Set a calendar reminder for 11 months after drawdown to explore switching options. You’ll recoup legal fees through cashback within the first year.
Final Checks Before Signing
- Verify your mortgage offer covers the full purchase price
- Confirm stage payment schedule matches contract requirements
- Check approval expiry date against estimated completion
- Ensure green rate applies (if A-rated BER confirmed)
- Review life insurance requirements (lender will mandate mortgage protection)
- Confirm all special conditions are met (employer reference, salary cert, etc.)
- Budget for first year: mortgage, property tax, home insurance, estate charges, furnishing
New builds offer advantages: modern design, A-rated efficiency, lower maintenance, and Help to Buy support. The mortgage process is more complex than buying second-hand, but with proper planning and the right lender, you’ll secure competitive financing for your new home.
See also: Help to Buy Scheme Ireland | How Much Can I Borrow? | First-Time Buyer Mortgages Ireland | Mortgage Deposit Requirements Ireland | Mortgage Approval in Principle Ireland