Buying a home is one of the biggest financial decisions you will make. So it pays to compare the current rates on offer. You may be able to save significant amounts of money by comparing your options before you take out a mortgage. Don’t be swayed by cashback payments and other offers from lenders. A mortgage is a long-term product so consider the total cost of credit when deciding who to take out your mortgage with. Look at all your rate options – fixed and variable with the CCPC mortgage comparison tool.

Approval in Principle

You may find the property you want to buy first, and then start looking for a mortgage. But there is no point looking at a new home if you don’t know whether you can get a mortgage or how much you can borrow. Getting ‘approval in principle’ means that your lender approves you for a mortgage of up to a certain amount, based on the details you have given in your application.

Having approval in principle does not mean that you need to buy the most expensive home you can. When you are looking at property, try not to be guided by the amount you can borrow. Any offer you make should be based on what you think the home is worth versus others in the same area, or similar homes.

Applying for a mortgage

Good money management and a steady savings record will work in your favour when applying for a mortgage. Get more information on applying for a mortgage.

Mortgage protection insurance

Once your mortgage application is approved, you should look for mortgage protection insurance which is insurance that will pay off your mortgage if you die within the term of the policy. You should not wait until you have made an offer on a house or apartment before shopping around and applying for mortgage protection insurance. It can take some time to get approval, particularly if you have had poor health in the past. This could delay the sale as, by law, your lender must make sure that you have this cover before taking out a mortgage. Your lender may agree to give you a mortgage without you having this cover if:

• you are over 50
• you are buying an investment property
• you have enough life insurance in place already or
• you cannot get cover.

However, your lender can insist on you having the cover and can refuse you a mortgage if you cannot get it. Most mortgage lenders offer to arrange mortgage protection insurance for you when you apply for a mortgage. You do not have to take your lender’s insurance, you are free to shop around for better value or a more suitable policy.