Central Bank study: Rental Markets, Savings and the Accumulation of Mortgage Deposits

Gordon Gekko

Registered User
You've mentioned this before, but there is also the point that one's home can grow in value "tax-free".

That makes downsizing when the kids are gone not the worst play in the world.


Registered User
As a non financial person what is the rational for 10% deposit for ftb and 20% for second time buyers who are more likely to have crèche fees/ higher rental costs/ shorter working lives. Also fg will most certainly lose my vote if grants are given to ftb at expense of families

From memory , the rationale for these levels was partly influenced by an analysis of arrears carried out some years ago by the Central bank,it found lower arrears where the deposit was 20% or greater or 10% in the case of FTB. The 20% deposit was also the standard required by most financial institutions up to about 2000 and still is in a lot of European countries, the 10% or less than deposit was the anomaly.

"Grants given to FTB at the expense of families", while I take your point and agree about high costs of childcare etc I don't understand the point made here, current owners have received a number of benefits such as much lower interest rates, mortgage interest relief, FTB grants, LPT exemptions etc which are no longer available to todays FTB . They also have had security of tenure etc that someone renting doesn't have and since the policy has been to encourage private home ownership (rather than social or rented accommodation) then you can't really complain when the govt tries to do that.
Well you can, but not from the perspective that the government should give the money to families housing instead or are disadvantaging you in some way. Personally I wish they would stop tinkering with populist measures entirely