How to save for a mortgage while renting

According to the Central Statistics Office, the national median price for a home reached €390,000 in the 12 months to February 2026, reflecting a 6.8% annual increase. This means first time buyers need to plan carefully and save consistently to build a deposit and prepare for the overall process of buying a home.

According to a recent RTB Rent Index  Report, average rents in Ireland now exceed €2,023 per month, making it more difficult for many renters to save at the same time. While renting can make it harder to put money aside, the right approach can help you make steady progress over time.

How much you need to save for a deposit

Before you start saving, it is important to understand what you are working towards.

Based on guidance from the Competition and Consumer Protection Commission (CCPC), most first time buyers in Ireland will need to:

• A minimum deposit of 10% of the purchase price is required.
• Typically borrow up to four times your gross annual income.

Getting Approval in Principle early can help you understand your budget and show sellers that you are in a strong position to move forward.

To build a clearer picture of your finances, using a budget calculator can help you track your monthly outgoings and understand how much you can realistically save.

You will also need to budget for additional costs for buying a home including:

• Stamp duty, usually around 1%.
• Solicitor fees, typically between €2,500 and €5,000.
• Survey costs, usually between €200 and €450.
• Buildings insurance is typically required when taking out a mortgage.

Buying a house is a big step. It’s a lot of money, so make sure you’ve got the right insurance to protect your home. 

If you're buying a home with a mortgage, you'll need buildings insurance. Mortgage lenders require you to have it as part of your loan agreement. You should insure your buildings for the full amount it would cost to rebuild your property if it is damaged or destroyed including the cost of site clearance and architect’s fees.  Contents insurance isn’t required when buying a house. But it’s worth considering to protect your valuable items if they’re damaged.

Practical ways to save while renting

Saving while renting requires careful planning, but small changes can make a big difference over time.

1. Set a clear savings goal

Start by working out how much you need for your deposit and related costs. Breaking this total into a monthly target can make the goal feel more manageable and easier to track.

2. Treat your savings like a fixed expense

Setting up a regular transfer into your savings account can help build consistency. Prioritising savings early in the month means you are less likely to spend what you intended to save.

3. Review your spending regularly

While rent is often your biggest fixed cost, smaller expenses can add up. Reviewing subscriptions, daily spending and household bills can help identify areas where you can free up extra money.

4. Keep your savings separate

Using a dedicated savings account can make it easier to track your progress and reduce the temptation to dip into your deposit fund.

5. Build a plan that works for you

Understanding how much you can realistically save each month is key to staying on track. Setting a plan that fits your income and outgoings can make saving feel more achievable, and reviewing it regularly allows you to adjust as your circumstances change.

Zurich has a range of resources and calculators to help guide you through your financial planning.

6. Make the most of available supports

Depending on your circumstances, schemes such as the Help to Buy scheme or the First Home Scheme may help reduce the amount you need to save yourself.

7. Look for ways to increase your income

Even small increases in income can make a difference over time. This could include taking on additional work, selling unused items or reviewing your current salary.

8. Use extra income to boost your savings

Bonuses, tax refunds or gifts can help accelerate your progress if they are put directly towards your deposit.

How long does it take to save a deposit?

Before you start saving, it is important to understand what you are working towards and how you will get there.

How long it takes to save a deposit will depend on your income, rent and how much you can realistically set aside each month.

In Ireland, households save around 12% to 14% of their income on average, which is roughly €1 in every €8 earned. While this can be a useful benchmark, renters often have less capacity to save due to higher monthly housing costs.

For example:

• Saving €300 per month could result in €3,600 in one year.
• Saving €500 per month could result in €6,000 in one year.
• Saving €800 per month could result in €9,600 in one year.

Setting a clear goal and understanding your monthly savings capacity are key to making steady progress. Regularly reviewing your plan can also help you adjust your contributions as your circumstances change.

It is also worth considering how your savings are working over time. While keeping money in a standard savings account can feel secure, inflation may reduce its value. Depending on your timeframe and goals, some people explore different savings or investment approaches to help their money grow.

Taking a structured and flexible approach can make saving for a deposit feel more manageable and help you stay on track.

Planning ahead for your future home

Saving for a mortgage while renting takes time, but having a clear plan and staying consistent can help you move closer to your goal. Understanding how much you need to save and building good habits along the way can make the process more manageable.

When you are ready to take the next step, Zurich can help. Whether you are planning your savings, preparing for home ownership or taking out home insurance, Zurich is here to help you on your journey. You can contact Zurich to speak with an expert and get advice tailored to your situation.