Mortgage Options

SeanoChuinn

Hello all,

Just trying to do some research into mortgages and what options are available to us. We are currently working\living in Canada and will be returning home with some savings in toe very soon. My traditional bank has always been BoI, but not committed to any bank at the moment. We've used Tangerine online banking for quite some time out here (they used to be affiliated to INGDirect, but have since stepped out on their own) as they had a fantastic return on interest rates. But we cannot continue banking with them once we return home.

I realise the banks will only provide maybe < 90% now and the customer will have to have a larger percentage of savings to be considered, also full time employment >= 12 months, etc. etc. you know, all the traditional, common sense rules the banks 'should' have adhered to in the past!! Its been 4 years since I banked at home so I'd have no history to speak of currently so we are in the same boat regardless of which bank we go to.

So my question is what other options have people taken in the direction of on-line banks or is the traditional brick and mortar bank still the best way to go from a lower interest, better deal point of view. Thanks for the opinions everyone.

SBarrett

Hi Sean

Are you looking for a mortgage or interest rates?

Mortgage wise, you will get 90% - 92%.
You have to prove that you can make the stress tested mortgage repayments. This is done by showing regular savings, rent/ other mortgage, other expenditures that won't be there.
You have to have a certain level of disposable income after stress test mortgage is paid. Approx €2k a month for a couple and another €250 for each kid.
Keep records of all your savings, all your bank statements and credit cards from Canada. If you are waiting a year before applying for a mortgage they probably won't be needed, but just in case. Better to have them than to not.

Steven

Oh, if you are looking for deposit rates, irishdeposits.ie is a good site for up to date rates.

SeanoChuinn

Thanks Steven,

It would be a mortgage for a house build. The reality is it'll be a while before we can apply(10-12+ months), with the logistics of the move and the time frame for us both to be in full time employment for a significant period after returning home. We are both savers and would be a shame to, as such, lose that history with the Canadian banks and on-line bank we've dealt with out here with a very good track record of saving and more or less be starting with a clean slate back home.

Obviously we'd want to get the mortgage ASAP, but that may well not be possible after we jump through all the necessary hoops for whatever bank we go with.

We realise all of that, I'm just not that familiar anymore with the banking market back home now, obviously the old reliables are still there, but was wondering were there any other options.

Thank you for your response.

SBarrett

The first thing you need is a full time job. PTSB will give mortgages at 6 months but will look at the employment contract i.e. make sure you are permanent. The others I deal with look for 1 year employment.

The banks look for 12 months savings statements. It may be difficult to show that when you just get home as you will have costs of returning home.

The mortgage provider market has reduced a huge amount since the Celtic Tiger. You have AIB, BoI, KBC, PTSB and EBS

Steven

SeanoChuinn

Ok good to know. I'm unfamiliar with KBC at all. We've only talked to BoI to get an idea of what they'd want and I'm sure every bank is more or less the same, so all the requirements are well known to us. Our impatience and anxiousness to get going on the build may have to be put to one side as we will probably have to just put in the time in permanaent employment until we get to that point of being seen as a safe investment for the bank!!

SBarrett

KBC are one of the only banks that continued lending throughout the recession but they don't lend for self builds.

Once you can show a regular savings pattern, living below your means, ability to repay and sufficient surplus funds you'll be alright.


Steven