A Guide To Mortgage Protection Ireland 2026

A Guide To Mortgage Protection Ireland 2026

Buying your first home in Ireland is exciting - but there's one essential piece of paperwork that trips up almost every first-time buyer: mortgage protection insurance.

Without it, you can't get your keys. With it, you're protecting your family from inheriting your debt. Yet most people leave it until the last minute and end up overpaying by thousands of euros because they bought from their bank without shopping around.

Let's break down everything you need to know about mortgage protection in Ireland, so you can get the right cover at the right price.

What Is Mortgage Protection Insurance?

Mortgage protection is a type of life insurance that's compulsory for almost everyone getting a mortgage in Ireland. It does one simple but crucial job: if you die before your mortgage is paid off, the insurance pays the remaining balance to your lender.

This means your family won't inherit your mortgage debt - they'll own the home outright, debt-free.

Unlike regular life insurance which pays out a fixed amount, mortgage protection is "decreasing cover" - the payout reduces as you pay down your mortgage. This is why it's typically cheaper than standard life insurance.

Is Mortgage Protection Compulsory?

Yes, for most people. Irish lenders won't allow you to draw down your mortgage until you have mortgage protection in place. It's a legal requirement built into the mortgage approval process.

The only exceptions are:

• You're over a certain age (usually 50-55, varies by lender) - some lenders may waive the requirement
• You can't get cover due to serious health issues - lenders may proceed without it in exceptional circumstances
• You already have adequate life insurance - it must cover the full mortgage amount and term

For everyone else, no mortgage protection = no mortgage = no keys.

Types of Mortgage Protection Cover

There are three main types, depending on whether you're buying alone or with someone else:

Single Cover

Protects one person. If you die, the mortgage is paid off. Simple, straightforward, and the cheapest option if you're buying solo.

Joint Cover

Protects two people but pays out only once. When the first person dies, the mortgage is cleared and the policy ends. The surviving person has no further cover.

This is the most common choice for couples buying together because it's cheaper than dual cover.

Dual Cover

Protects two people and pays out twice - once for each person. If one person dies, the mortgage is paid and the policy continues to cover the second person.

More expensive than joint cover, but provides better protection if both people want ongoing cover.

How Much Does Mortgage Protection Cost?

The cost depends on several factors:

Your age - Younger buyers pay less. A 30-year-old pays significantly less than a 45-year-old for the same cover.

Smoking status - Smokers pay roughly 50-75% more. If you've quit for at least 12 months (including vapes and nicotine replacement), you can usually qualify for non-smoker rates.

Mortgage amount - Higher mortgage = higher premium, since there's more to pay out.

Mortgage term - Longer terms cost more because there's a longer period where a claim could be made.

Health - Pre-existing conditions may increase premiums or require exclusions.

The best way to understand what you'll pay is to get personalized quotes based on your specific circumstances. Costs can vary significantly between insurers, which is why comparing quotes is essential.

Don't Automatically Buy from Your Bank

Here's the single biggest money-saving tip: don't automatically buy mortgage protection from your bank.

Banks are tied to one insurer and can only offer one price. Insurance brokers compare multiple insurers and can typically find you significantly better rates - savings that add up to thousands of euros over a typical mortgage term.

By law, you're free to shop around. Your bank can't force you to buy from them, and they can't make your mortgage approval conditional on it.

When Should You Apply?

Timing matters. Too early and your cover might expire before drawdown. Too late and you could delay getting your keys.

The sweet spot: 4-6 weeks before mortgage drawdown.

This gives the insurer time to:

• Process your application
• Request medical reports if needed
• Complete any required medical tests
• Issue your policy and send confirmation to your lender

If you're in good health, you can get cover in as little as one hour with some brokers. But if you have health issues requiring GP reports or specialist sign-off, allow several weeks.

What Happens If You Have Health Issues?

Pre-existing medical conditions can complicate - but don't necessarily prevent - getting mortgage protection.

The insurer may:

• Accept you at standard rates
• Charge a higher premium
• Exclude specific conditions from cover
• Require additional medical evidence
• In rare cases, decline cover

Common conditions that need disclosure:

• High blood pressure or cholesterol
• Diabetes
• Previous cancer or serious illness
• Mental health conditions
• Heart conditions
• Back or joint problems

Critical tip: Never lie or omit information on your application. If you make a claim and the insurer discovers you withheld medical information, they can refuse to pay out - leaving your family with the full mortgage debt.

Mortgage Protection vs Life Insurance: What's the Difference?

People often confuse these two products:

Mortgage Protection:

• Decreasing cover (reduces with your mortgage balance)
• Specifically designed for mortgage requirements
• Cheaper than standard life insurance
• Compulsory for mortgages

Life Insurance:

• Fixed or increasing cover amount
• Can be used for any purpose
• More expensive
• Optional

Important: Whether you choose mortgage protection or life insurance, if it's being used to satisfy your mortgage requirement, it must be assigned to your lender. This means the policy is legally connected to your mortgage, and in the event of a claim, the lender has first rights to the payout up to the outstanding mortgage balance.

You can use existing life insurance to satisfy your mortgage protection requirement - but only if:

• It covers at least the full mortgage amount
• The term matches or exceeds your mortgage term
• It can be assigned to your lender
• Your lender accepts it as adequate cover

Can You Add Serious Illness Cover?

Yes, and many people do. Serious illness cover (also called specified illness or critical illness cover) pays out a lump sum if you're diagnosed with a specified serious condition like:

• Cancer
• Heart attack
• Stroke
• Multiple sclerosis
• Kidney failure

The payout can be used to clear your mortgage, cover medical expenses, or replace lost income during treatment.

Adding serious illness cover increases your premium significantly - often doubling or tripling it - but provides valuable additional protection.

What If You're Switching Mortgages?

When you switch to a new lender, you have two options for mortgage protection:

Option 1: Keep your existing policy

If your current policy covers the remaining mortgage amount and term, you can simply reassign it to your new lender. This is often the cheapest option, especially if you took out the policy when you were younger and healthier.

Option 2: Take out a new policy

If your mortgage amount or term has changed, you might need new cover. This is also a good opportunity to shop around - you might find better rates than your current policy, especially if you're now older or your health has changed.

Common Mistakes to Avoid

Leaving it too late - Don't wait until the week before drawdown. Give yourself time, especially if you have health issues.

Not shopping around - Banks are typically more expensive than going through a broker who can compare multiple insurers.

Choosing the wrong cover type - Joint vs dual matters. Understand what you're buying.

Not disclosing health information - This can invalidate your entire policy.

Forgetting about it - Review your cover if your mortgage changes (switching, overpayments, etc.).

How to Get Mortgage Protection

The process is straightforward:

1. Get quotes - Compare prices from multiple Irish insurers (Irish Life, Zurich, Royal London, Aviva, New Ireland)
2. Decide on cover type - Single, joint, or dual
3. Complete application - Basic personal and health questions
4. Medical assessment (if required) - May need GP reports or tests
5. Policy issued - Insurer sends "Confirmation of Assignment" to your lender
6. Mortgage approved - Your lender can now release funds

With a broker, this entire process can happen in under an hour if you're in good health.

The Bottom Line

Mortgage protection is non-negotiable for Irish homebuyers - but that doesn't mean you should overpay for it.

Shop around, get multiple quotes, and don't buy from your bank unless they're genuinely the cheapest option (which is rare). The savings add up to thousands over your mortgage term.

Apply 4-6 weeks before drawdown, be honest about your health, and choose the right cover type for your situation.

Your home is likely your biggest financial commitment. Make sure your family is protected without overpaying for the privilege.

Ready to compare mortgage protection quotes? Get your personalized mortgage protection quote here and see how much you could save. QuoteLeader compares Ireland's leading insurers to find you the best rate.