Time is running out for house-hunters looking to claim mortgage interest tax relief, which is due to be scrapped at the end of 2011 for those buying their first homes. The deadline has failed to kick - start the market, though, with new figures showing a collapse in all sectors. We examine your options.

• WHO'S BUYING?

Purchasers are thin on the ground. The Irish Banking Federation said last week that 1,301 first-time buyers climbed on the property ladder between January and March, borrowing an average of €183,543. They account for 40% of the mortgage market, though the number of first-time buyers has dropped by 85% since the peak of the boom in 2006. Frank Conway of MoneyCoach.ie, an adviser, said people were reluctant to buy while house prices are falling, jobs are insecure, banks are rationing credit and interest rates are rising.

• IS IT BETTER TO RENT?

It some respects it makes sense to delay buying while the crash continues. The new house price index from the Central Statistics Office says that prices nationally fell by 12% in the year to March, with apartments down by15%. The danger is that prices will continue falling into next year, by which time it will be too late to qualify for mortgage interest tax relief. Buyers also risk paying more interest then because fixed-rate mortgages are likely to be more expensive in 2012. Suppose you borrow €200,000 to buy now. Payments on a five-year fix at 5.35 from Allied Irish Banks would be €1,000 a month after tax relief. If you wait until 2012, you may only need to borrow €180,000 to buy the same house, though you would not qualify for tax relief. Mortgages will be more expensive too, possibly an extra percentage point higher for a five-year fix in 2012. This means your mortgage could cost more - €1,120 a month - even though you borrowed less.
Meanwhile, rents are rising - up 0.5% between January and March to a national average of €825 a month according to Daft.ie, a property website.  Karl Deeter of Irish Mortgage Brokers said: "It's vital to do the sums if you're not sure whether to buy now or hold off. It may be best to wait, it may be best to move now."

• WHAT DO MORTGAGES COST?

AIB have some of the best deals - 4.88% fixed for three years and 5.35% fixed for five. Bank of Ireland charges 5.05% fixed for three years and 5.7% for five years. KBC Homeloans charges 5.1% fixed for three years. Variable rates are lower, but they will increase as interest rates rise.

• WILL I GET A LOAN?

Under banks' lending rules, you should qualify if the payments on your mortgage do not eat up more than 45% of your take-home pay, assuming you are part of a couple earning €75,000. However, these rules may be applied more strictly in practice.
Lenders have formulae to determine how much you can borrow, but these operate increasingly as maximum guidelines. If a couple earns €75,000, they might expect to borrow €225,000 - three times their incomes. Lenders will turn them down, though, if they do not have a track record of putting away a large chunk of their earnings, either in rent or savings for a deposit. It's not enough for your figures to stack up on paper. You must be able to show you can afford the mortgage.

• TOP TIP!

Avoid paying large or regular bills in cash to ensure you leave a paper trail that will make it easier for lenders to assess your finances.