Chapter 5 of 10 · From sale agreed to keys · 7 of 12
Mortgage drawdown: how the money moves from the lender to the seller
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
How lenders release mortgage funds to your solicitor: requests, timing, undertakings, stage drawdowns for new and self-builds.
Check before you hire: a solicitor should be on the register kept by the Law Society of Ireland. Law Society: find a solicitor
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Drawdown is the day the lender pays out the mortgage. It is the last money step in buying a home. Most people never see the money: it goes from the lender to your solicitor to the seller's solicitor in a single day. This guide explains how that works, who promises what to whom, how long it takes, and how it differs on a new build or a self-build.
What drawdown is
Your loan offer says the lender has agreed to lend you a set sum. Drawdown is when that sum is actually paid. The lender does not pay it to you. It pays your solicitor (check the Law Society's register; see the conveyancing solicitor page). Your solicitor holds it in a client account for a few hours or days, then pays the seller's solicitor on the closing date.
Interest starts on the day of drawdown. Your first repayment is usually the month after.
Who is involved
| Who | What they do on drawdown |
|---|---|
| You | Sign the acceptance, meet the conditions, pay the deposit |
| Your solicitor | Gives the lender an undertaking, requests the funds, pays the seller |
| The lender | Checks the conditions, pays the money to your solicitor |
| The seller's solicitor | Receives the money, hands over the keys and the deeds |
A worked example
Aoife is buying a house for €380,000 with a €342,000 mortgage. She has paid €38,000 in deposits: €5,000 to book and €33,000 at contracts. The closing date is Friday 12 June. On Monday 1 June her solicitor sends the lender a request for funds and the undertaking. The lender pays €342,000 into the solicitor's client account on Wednesday 10 June. On the Friday the solicitor sends €342,000 to the seller's solicitor, who confirms receipt and releases the keys. Aoife's first repayment is on 1 July. Her solicitor then pays the stamp duty of €3,800 and registers the title and the mortgage with Tailte Éireann.
The undertaking
Before the lender pays, your solicitor signs an undertaking. This is a written promise to the lender that the solicitor will:
- Use the money only to buy the named home.
- Make sure you get good title to it.
- Register the lender's mortgage against the home with Tailte Éireann (the Land Registry).
- Send the lender the title deeds once registered.
The undertaking is a serious promise. A solicitor who breaks one answers to the Law Society and the courts. It is why the lender trusts the solicitor with the money, and why the lender never pays you directly.
The conditions that must be met first
The lender releases nothing until every condition in the loan offer is met. The usual list:
- Mortgage protection in place, with the policy document sent to the lender.
- Buildings insurance in place, with the lender's interest noted.
- The direct debit mandate signed.
- Proof of the deposit.
- The valuation report on file, at or above the price.
- The acceptance signed by you and your solicitor.
- Any special condition met: a structural report, a planning certificate, a retention.
The loan offer guide explains each one. The slowest are the two insurance policies, so start them the day the offer arrives.
How long it takes
Once the request for funds goes in, most lenders pay within three to ten working days. Your solicitor usually sends it a week or two before the closing date. The lender does a final check of your position before it pays, so do not change job, take on new debt or move your deposit in those weeks.
The buying timeline tool shows where drawdown typically falls after your sale agreed date. Ten to sixteen weeks from sale agreed to closing is the normal range for a second-hand home.
Drawdown on a new build
On a new build, drawdown happens when the builder says the home is finished and your snag list is signed off. The loan offer may have expired by then, because new builds often take longer than six months. Ask for an extension early. Help to Buy, if you are using it, was already paid to the builder at contract stage, so it does not form part of the drawdown. The new build guide covers the whole sequence.
Stage drawdowns on a self-build
A self-build mortgage is paid out in stages, not in one go. Each stage is released when an engineer or architect certifies that the work has been done. A typical set of stages:
| Stage | Released when |
|---|---|
| 1 | The foundations are in |
| 2 | The walls are up to roof level (wall plate) |
| 3 | The roof is on and the house is weathertight |
| 4 | Plastering and first fix of plumbing and wiring are done |
| 5 | The house is finished and the final certificate is signed |
Each lender sets its own stages. On a self-build the money can go to your own account, so you can pay the builder or the suppliers. You usually pay interest only on what has been drawn, so the repayment grows with each stage. Help to Buy on a self-build is paid into your loan account at the first drawdown. The self-build mortgage guide explains the stages and the certificates.
What can delay drawdown
- A missing insurance document. The most common one.
- A condition not met, such as a planning certificate the seller has not produced.
- A change in your position at the final check.
- The lender's own processing time around holidays.
- A problem on the seller's side, so your solicitor holds the money until it is fixed.
If the money arrives but the seller is not ready, your solicitor keeps it in the client account. Interest on the mortgage still runs from the day it was paid. Ask your solicitor to time the request so the money lands as close to closing as the lender allows.
After drawdown
On the closing day the keys change hands. The closing day guide walks through it. In the weeks after, your solicitor files the stamp duty return within 44 days, registers your title and the mortgage with Tailte Éireann, and sends the deeds to the lender under the undertaking. Registration can take months; it does not affect your right to live in the home.
Where this leaves you
Put your sale agreed date into the buying timeline tool to see when drawdown typically falls, and get the insurance conditions moving as soon as the loan offer arrives. The first-time buyer journey shows the last steps in order, and you can get quotes for a solicitor to handle the undertaking and the closing.
Questions people ask
What does mortgage drawdown mean?
Drawdown is the day the lender pays the mortgage money out. It goes to your solicitor's client account, not to you. Your solicitor adds your deposit and pays the seller's solicitor. Your repayments start the month after.
How long does drawdown take?
Once your solicitor sends the request for funds, most lenders pay out within three to ten working days. Your solicitor usually sends the request a week or two before the closing date so the money is there on the day.
Does the money go to my bank account?
No. The lender sends it to your solicitor, who holds it in a client account and passes it to the seller's solicitor on closing. The only exception is a self-build, where each stage payment goes to your own account after the engineer certifies the work.
What is a solicitor's undertaking?
A written promise from your solicitor to the lender. It says the solicitor will use the money only to buy the home, will register the lender's mortgage against it, and will send the lender the title deeds. The lender relies on it to release the money.
When do mortgage repayments start after drawdown?
Usually the month after drawdown, on the date the lender sets. Interest runs from the day of drawdown. Your first repayment may be a part-month and a little different from the figure in your offer letter.