BY JOHN ELLIS, FINANCIAL ADVISOR
Last week we reviewed the Budget’s emphasis on fiscal restraint and “strategic priorities” over expansive relief measures. We saw that expenditure will rise by €9.4 billion to €117 billion including plans to offer modest increases to certain sectors of society, such as €10 weekly to core payments like State pensions and a 65 cent rise in the minimum wage to €14.15.
Sector-specific incentives were also unveiled, providing targeted support including a VAT reduction from 13.5% to 9% for hospitality and new apartments. Yet, broader cost-of-living pressures persist amid criticisms from opposition figures like Sinn Féin’s Pearse Doherty, who termed the Budget a “blueprint for never-ending crises”.
Be that as it may, we must paddle our own canoe and not be expecting handouts from the Government. We will probably get them again nearer the next election. But we must pursue our own strategies to strengthen our household budget.
Take mortgage protection insurance for example. This is mandatory for the majority of people taking out a mortgage and designed to cover the outstanding loan balance upon the policyholder’s death. Many borrowers accept costlier options from their lenders due to mistaken beliefs. Research indicates that first-time buyers who fail to compare providers could pay €10,000 in excess premiums in the lifetime of their mortgage.
For instance, a 35-year-old non-smoking couple setting up a €500,000 mortgage over a 30-year period would pay €53.47 monthly with one of the pillar banks, totalling more than €19,000. Comparable cover from Zurich or New Ireland costs €43.18 monthly, giving €3,700 in savings.
Smokers fare worse: €103.12 versus €80.32 monthly, equating to €8,200 saved. Similarly, a 40-year-old single non-smoker with a €300,000 loan over 25 years pays €32.61 at PTSB or €27.29 at Bank of Ireland, but just €22.26 at Zurich, €22.54 at Royal London Ireland which includes a free first month.
Daragh Cassidy of Bonkers.ie notes that borrowers often overlook this flexibility, assuming the offer from the bank is obligatory. “Mortgage customers are free to shop around,” he says, adding that online brokers can speed up the process while reducing costs. These monthly savings of €10 to €20 accumulate substantially over decades, equivalent to routine discretionary expenses.
Existing homeowners stand to benefit equally, particularly amid anticipated ECB rate reductions. Royal London Ireland’s analysis reveals broker-sourced policies are up to 28% cheaper than bank equivalents, owing to access to multiple insurers. A 30-year-old couple with a €250,000 mortgage over 35 years saves €8 monthly (€3,000 total) via a broker. For a 50-year-old pair with €500,000 remaining and 15 years left, the figure is €32 monthly (€6,000 saved).
Joe Charles, Proposition Director at Royal London, attributes this to brokers’ competitive sourcing: “They secure the optimal product and price for individual needs.”
As Budget 2026 prioritises long-term stability we cannot, and should, not rely solely on State intervention. By utilising comparison sites like Bonkers.ie or consulting a financial advisor you can save thousands without undue effort.
This proactive approach aligns with the Budget’s ethos of prudence, transforming “fiscal caution into tangible personal gain”.
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