First Home Scheme

SUMMARY 

Grant / Support Name: First Home Scheme  

Provider: Irish Government  

Value: Up to 30% of the purchase price or up to 20% if you are also participating in the Help to Buy (HTB) scheme. 

Overview: The First Home Scheme is a shared equity scheme where the government helps you to buy a new home by covering up to 30% of the property's price. In exchange, the government gets a share or stake in your home. This means you’ll own the home together with the government, with the government’s share based on the amount contributed. 

The scheme is open to first-time buyers who want to buy a new home, people who want to build their first home on their own site and for people who want to buy the home they are renting because their landlord is selling.

 Eligibility: 

To qualify for the scheme: 

• You must be a first time buyer, never having bought a home, either inside or outside of Ireland. 

• You will also qualify if you are divorced or separated and no longer have a financial interest in your former family home. 

 Special Conditions:  

• You cannot avail of a mortgage exemption and the First Home Scheme at the same time.  

• You must have a minimum deposit of 10% of the purchase price. 

• You must have mortgage approval from a lender that is participating in the scheme.  

• You must borrow the maximum amount a lender is willing to give you. 

• The Government retains an equity stake in your home which must be paid back when the home is sold, or taken from your estate when you die.  

• While no charges apply for the first five years, an annual service charge will apply from year six. This is 1.75% of what you received from the First Home Scheme in years 6-15 and increases to 2.15% from years 6-29 and to 2.85% from 30+ years. 

• Your home must be within the price limits for your area.  

 Tax Implications: There are no tax implications with this scheme 

ARTICLE  

The First Home Scheme (FHS) helps you buy or build your first home by providing financial support through a shared equity program. This means that the government and participating banks can cover up to 30% of your home's cost in exchange for a share in the home. You can buy back this share anytime, but it's not mandatory. The government's share will be reclaimed when you sell the home, switch to a non-participating lender, stop using it as your main residence, or pass away. 

HOW TO QUALIFY

This scheme is available for those buying new houses or apartments in private developments, self-builders constructing their first home, and renters whose landlords are selling the property they live in. The home's cost must fall within local price limits.If you're also using the Help to Buy (HTB) scheme, the FHS will cover up to 20% of your home's cost.  

To qualify, you need a mortgage from AIB (including EBS and Haven), Bank of Ireland, or PTSB. Homes priced up to €475,000 for houses and €500,000 for apartments may be eligible, depending on the location. 

HOW TO APPLY

You can first check your eligibility by using this eligibility calculator. If you are eligible, you can register and submit your application online through the FHS customer portal. 

Once you’ve registered, you will be asked to supply information such as your personal details, qualification status, property specifics and your solicitor's contact information. You will also need to upload supporting documentation such as a copy of your Mortgage Approval in Principle (AIP) from a participating lender, current address verification for all homebuyers and estimated build costs if you are looking to self-build your home. 

If approved, you will receive what is called an Eligibility Certificate to give to your lender who will consider the FHS when they process your mortgage application. On receipt of mortgage approval, you can finalise your FHS application. Once this is approved, funds will be paid to your solicitor’s account, and your solicitor can finalise the property purchase in parallel with the mortgage process. 

Example: Anne and Barry earn €60,000 a year between them and want to buy a new house for €350,000. They can get a mortgage for €240,000 and have a deposit of €35,000. This still leaves them €75,000 short, which the First Home Scheme can cover. Their deposit can come from their savings and the Help to Buy scheme. 

In this case, the government or local council will own 21% of their home because €75,000 is 21% of €350,000. If Anne and Barry sell the house later without repaying the €75,000, the government or council will get 21% of the sale price, regardless of whether the price goes up or down. 

 Note: Duplexes fall under the house price limits. 

There is an eligibility calculator  here in the How to Buy a Home Hub, to help you see if you qualify. 

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