Whether you’re buying your first home or moving up the ladder, saving for a mortgage deposit remains one of the biggest barriers to home ownership in Ireland.
Lending rules still mean most buyers only need a 10% deposit. But with average property prices significantly higher than a few years ago, that 10% can still feel daunting.
For example:
- A €320,000 home = €32,000 deposit
- A €400,000 home = €40,000 deposit
Add in high rents and cost-of-living pressure, and saving can feel overwhelming. At Mortgage123, we’ve put together a practical guide to help you build your deposit faster, focusing on strategies that make a real difference.
First: How Much Should You Be Saving?
Before you start, it’s important to work out your target deposit of 10-12% of the purchase price of the house. However, where many first-time buyers fall short is the way they save – the savings pattern matters to lenders as much as the deposit amount saved.
Lenders are not only interested in how much you have saved, but how you saved it. Building a pattern of regular contributions shows that you can comfortably handle future mortgage repayments. Many buyers find it helpful to think of their savings as a “practice mortgage,” committing to a fixed monthly amount that mirrors what they might eventually repay.
Furthermore, if you are not paying rent, your savings pattern will be even more important as this is the only way for you to demonstrate you can repay a mortgage.
The most important question we often get asked is: ‘How much should I be saving per month?’
Deposit Funds required:
- Property: €350,000
- Deposit (10%): €35,000 (mortgage €315,000)
- Costs (~2%): €7,000
- Target savings: €42,000
Monthly Mortgage repayments:
Approximate (this is for illustrative purposes only):
- Mortgage of €315,000
- 30 years mortgage term
- 3.5% interest rate
- Monthly repayments ~ €1,415
Therefore, you need to demonstrate to the lender that you can comfortably cover these monthly repayments. With high rents these days, it is easy to demonstrate this by showing you have been paying this amount in rent over the past 6 months. However, if you had moved home and paid no rent, this is where the demonstrated monthly savings come into play.
Timeline to Save Deposit:
2.5 years
Saving ~ 1,500 per month consistently
8 months
Using Help to Buy Scheme (up to €30,000) and saving €1,500 per month. (requirement is to purchase a new build home, upper price limits apply).
0 months
You may be lucky enough to get a gift by a parent of the deposit amount required. Note: you will still need to demonstrate you can repay the mortgage by showing rent or regular savings for at least 6 months before you apply for the mortgage approval.
High-Impact Ways to Save Faster
These strategies will move the needle, not just trim small expenses.
One of the biggest misconceptions about saving is that progress comes from small sacrifices alone. In reality, the most meaningful gains come from addressing your largest expenses first—particularly rent.
Reduce Your Rent or Move Home
For those who have the option, moving home for a period can transform your ability to save, even if it is not your first choice. For others, downsizing or switching to shared accommodation can reduce monthly outgoings significantly. Saving even a few hundred euro per month in rent quickly compounds into thousands over the course of a year.
Rent a Room
Another powerful approach is making better use of the space you already have. The Rent-a-Room scheme continues to offer a valuable opportunity in Ireland, allowing individuals to earn tax-free income by letting out a spare room. For many, this can be the difference between slow, incremental savings and meaningful, consistent progress.
Tackle Your Debt
Paying those expensive interest rates on your credit card debt can cut into your ability to save. Furthermore, any missed payments will negatively affect your credit rating when applying for a loan, such as a mortgage. Try paying off your credit cards in full or as soon as possible as each interest payment you make is money that could have been saved for a deposit.
Tip: Aim to pay off loans just before you apply for a mortgage. This can reduce your debt-to-income ratio, and the monthly repayments may be able to be used towards proving repayment capacity. Speak to a mortgage broker before you start or pay off a loan in the months before you apply for a mortgage!
Cancel the Large Expenses
Lifestyle spending is another area where small adjustments can lead to substantial results, particularly when it comes to larger, less frequent expenses. Lenders still want to see you can live, so do live a little.
Taking a pause from expensive holidays or scaling back on major discretionary spending for a defined period can free up significant amounts of money without affecting day-to-day quality of life. It is less about restriction and more about prioritisation; recognising that short-term trade-offs can unlock long-term security.
Choose the Right Place to Save
In short: Your deposit should be secure, stable, and accessible.
Where you keep your savings matters almost as much as how you build them. Your deposit should be held somewhere secure, accessible, and predictable. While the idea of growing your savings through investments may be appealing, the reality is that your deposit is not money you can afford to put at risk.
For most buyers, straightforward options such as high-interest savings accounts, regular saver accounts, or credit union accounts provide the right balance of security and accessibility. Some lenders also offer dedicated mortgage saver accounts, which can help reinforce your savings history when it comes time to apply for a loan.
The priority should always be stability. Your deposit is not about chasing returns, it is about ensuring that the money is there, intact, when you need it.
1. High-Interest Savings Accounts
Best for:
- Easy access
- Short to medium-term goals
Look for:
- Competitive interest rates
- No withdrawal penalties
2. Regular Saver Accounts
Best for:
- Building discipline
- Monthly contributions
Often offer:
- Higher interest rates (with limits on deposits)
3. Credit Union Accounts
Strong option in Ireland:
- Trusted and local
- Encourages consistent saving habits
4. Deposit-Specific Savings Accounts
Some banks offer mortgage saver accounts:
- Designed to show repayment ability
- Can support your mortgage application
What to Avoid:
- High-risk investments (crypto, trading, volatile stocks)
- Locking money into long-term accounts you can’t access
- Anything that could reduce your deposit value
- Saving in foreign currency or foreign accounts
A Word from Mortgage123
Saving for a mortgage deposit in 2026 isn’t without its challenges but it is achievable with the right approach.
The key is to focus on the changes that genuinely move you forward, build consistent habits, and stay clear on your end goal. You don’t need to do everything at once, but you do need to start.
At Mortgage123, we’re here to guide you through every step of the journey, from your very first savings plan right through to getting your keys.
Your home might feel a long way off today, but with the right plan in place, it’s closer than you think.