Despite the collapsed economy, persons with a history of employment, a good credit rating, and the ability to make a large down payment are still able to get a first time buyer mortgage with relative ease. While Irish banks are skittish when it comes to lending, they still have a strong desire to make money were possible, and many Irish persons with exceptional credit are desirable bets for them to make. Working professionals in secure careers, such as law, medicine, banking and accountancy are sure to continue being employed even in the current economic slump, as well as having a large enough income to where they can pay for more of a modest house on their own. Persons who are older in age, namely their late 20s and early 30s, are also more likely to receive a loan since they are more likely to retain employment.

However, not everyone looking for a first time buyer mortgage will meet such stringent requirements. In fact, most first-time homebuyers have modest credit and are in their early-to-mid 20s, hoping to get a house big enough to put their family in. Because these people may be a bit of a credit risk, banks are skittish to lend to them, and they must prove that they are a good risk for the bank before they will get a loan. In general, the best way for people in such circumstances to improve their chances is to pick a small, less expensive house and try to get a large down payment, 30% of the closing price or more. This may require the potential borrower to sell investments, ask for help from family members, or simply hold off on buying a house for a few years. However, banks are much more likely to lend out smaller amounts of money, since there is less for them to lose, and so a big down payment is the best way to help encourage a home loan.

The Irish government has also stepped in to try and help out first time homebuyers thought a series of grants, guaranteed loan programs, and other means of assistance. As this sort of assistance tends to vary from town to town, it is a good idea to check in with a local magistrate before purchasing a home. Many charity organizations, run both by the government and by the church, have the sole purpose of helping people get the money and loans they need in order to buy a home. Since this money is often given away in terms of down payment assistance, reduced loan rates, or tax credits, it’s important for first time borrowers to ask for all the help they can get, since it will help them save a great deal in the long run.

Mortgage Ireland offers tax relief to borrowers. Rates apply for the first 7 years then gradually decrease thereafter. The amount of relief depends on whether you’re a first time buyer mortgage, married, single, or widowed.
Article Source

Essentially, this product is only ideal for: first-time homebuyers who want fixed payments and have limited opportunities to make lump-sum payments during the first five years of their mortgage; and property investors who need a low fixed rate and are not concerned with making lump-sum payments.

No-Frills products also won’t let you take your mortgage with you if you purchase another property before your mortgage term is up – ie, portability is not an option with this product. Portability is an important option that could save you money over the long term if the home of your dreams is within your reach before your mortgage term is up and rates have risen, which they have a tendency to do over a five-year period.

It’s understanding why these products may seem appealing. After all, during tougher economic times who has the extra cash to put down a huge lump-sum payment? And who needs a portable mortgage if they’re not planning on moving until the market picks up? But it’s important to remember that a lot can change over the course of five years – or whatever term you choose for your mortgage.

The thing is, you can still obtain great mortgage savings without giving up the perks of traditional mortgages. For starters, many lenders are willing to offer significant discounts if you opt for a 30-day “quick” close.

There are, however, other ways in which to earn your own discounts. For instance, by switching to weekly or bi-weekly mortgage payments, and by obtaining a variable-rate mortgage but increasing your payments to match those of the going five-year fixed rate, you’ll be ahead of the typical 0.1% discount of a No-Frills product within approximately three years.

No-Frills products represent a great example of why interest rates are not the only important factor to consider when deciding whether to opt for a particular mortgage product. Much like buying a car, you get what you pay for. If you don’t want a car with air conditioning, a stereo, a cup holder, and so on, then you can get the cheapest car going… but you’ll likely regret it later.

Jeremy Fleming is a Mortgage Broker in Vernon BC with Dominion Lending Centres – White House Mortgages. As a real estate investor AND Mortgage Broker, Jeremy has a high level of industry knowledge that is simply not available through traditional bankers, and many other Vernon Mortgage Brokers. Jeremy can help you with your mortgage needs here in the Okanagan and beyond. Visit him online at http://www.JeremyFleming.ca or call (250) 545-1554.
Article Source