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250k -How much of a deposit will the banks look for? What % do banks stress loans to?

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  • 21-01-2011 12:16am
    #1
    worded
    Registered Users Posts: 4,537 ✭✭✭


    Looking at a house for 250K.
    How much of a deposit will the banks look for?


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    #2
    Fozzie Bear
    Registered Users Posts: 1,178 ✭✭✭Fozzie Bear


    We went sussing out things last summer/autumn and at that stage banks were giving 4/4.5 times your combined salary and you needed to stump up 8% of the amount. So if thats still the same you will need 20-25grand minimum in savings/deposit for a 250k mortgage and be able to prove/show its savings/not a credit union or parents loan.


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    #3
    JoeyJJ
    Registered Users Posts: 3,663 ✭✭✭JoeyJJ


    When my wife was in with BOI Mortgage people a while ago they said 8% plus approx 1,500 in fees and 1,500 - 3,000 for Moving costs and Furniture. Not sure about the Moving costs though, where they pluck that number from.


    3,000 in Fees and Costs
    8% deposit
    1% Stamp Duty.

    So for 250,000 I estimate 25,500.

    300000 -> 30000
    285000 -> 28650
    275000 -> 27750
    270000 -> 27300
    260000 -> 26400
    250000 -> 25500


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    #4
    ntlbell
    Registered Users Posts: 16,288 ✭✭✭✭ntlbell


    don't leave it to the bank to stress test it, you stress test it and go to the bank with what you can afford.

    Ideally you would want a single income of 80-90k (excluding bonuses/commision etc)

    A deposit of around 20% so 50k + fee's.

    This is probably not what the bank will require, but it's what you should require to insure affordability.


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    #5
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Stress test the loan yourself is important. Present var rates/fixed rates won't last and expect to add 2% to these if you are going for a 4% rate to ensure you won't get stung down the line. To add, I base that on rates at around their peak in the last few years and are not precise for the pedantic brigade.


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    #6
    Treehouse72
    Registered Users Posts: 1,003 ✭✭✭Treehouse72


    ntlbell wrote: »
    don't leave it to the bank to stress test it, you stress test it and go to the bank with what you can afford.



    Excellent advice. The question "What % do banks stress test to?" raises a big red flag for me as it implies OP is wondering about what s/he can get away with rather than what they can afford. I am not saying that is OP's attitude, just that this attitude needs to be banished entirely from the thought process. Stress test it yourself all to hell and be on top of those numbers, and don't shift from them, when approaching the bank. It's not about sneaking in under the tape with the bank, it's about affordability and long term sustainability.


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    #7
    homerjk
    Registered Users Posts: 271 ✭✭homerjk


    We went to AIB and BOI last summer and they both approved us in principle for these 4/5 times salary figures. However when we went to go further and actually start bidding on houses this dramatically changed. Im on 45k and shes a nurse on 35k. We have a deposit of 45k. No loans. Renting for 8 years. AIB approved us for 245k and BOI approved us for 260k.


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