First time buyers looking to buy a new build home should be aware of three schemes designed to aid home purchase.
The three main schemes – all of which are applicable to new build homes only (with the exception of tenant purchase under first home scheme) are -
- Help to buy (HTB) Scheme –
What is it?
The help to buy is a rebate of the tax that you have paid over the last four years. You apply for confirmation of eligibility and the amount you are eligible for via MyAccount on Revenue.ie and you do not need to have a property in place apply to confirm level of HTB you would be eligible for.
How much?
Rebate can be up to 10% of the purchase price of a new build or self build home, capped at €30,000.
Rules?
Main rules, you have to have paid tax in Ireland and to be eligible for the full sum, tax of €30,k or above.
Minimum loan to value is 70% so your mortgage must be 70% or more of the purchase price of the property or value of the home on completion.
The property must be your principle private residence and must be located in ROI.
The maximum value of the home must not exceed €500,000.
Repayable?
The sum is not repayable but clawback can arise if the home is no longer your principal private residence withing 5 years of purchase.
- First Home Scheme (FHS) –
What is the First Home Scheme?
This scheme is slightly less well known but growing in popularity – launched July the scheme aims to bridge the gap between what you can afford and what you need to purchase a new build home. The scheme is also available to those looking to build a home or purchase their home under the tenant purchase scheme (where a tenant on a registered tenancy receives an eviction notice and wishes to purchase a home).
How Much?
An Equity stake is taken in the property by First Home Scheme Dac. This equity stake can be 30% of the purchase price if not being used in conjunction with the help to buy or 20% if being used in conjunction with the HTB.
FHS Dac is the Dept of Housing and participating lenders who put together this fund.
Rules?
Price ceilings are in place with regard to the max price of a new build home that is allowable for the FHS to apply. This is based on the local authority.
This scheme can also apply to those who may be separated, divorced and who no longer have an interest in the family home. They can apply for the FHS under the Fresh Start Principle.
Is It Repayable?
The amount under the FHS will need to be repaid under the following circumstance, on death, sale of the home, property no longer being PPR, or mortgage switcher to a lender outside of participating lenders.
Differs to a normal mortgage, you don’t make monthly repayments, you pay a service charge from year 6 and onwards.
You can buy back the interest that the FHS takes in your home. To note the amount to be repaid will be based on equity stake taken at time of purchase and the value of your home at time of buy back. An example would be -
Average support received by buyers at end June 2025 was €66,324, average purchase price €385,857 so average percentage stake is 17%. If that home then went up to €450,k the stake owned would be valued at €76,500 and it is this amount that would need to be repaid.
- Local Authority Affordable Purchase Scheme –
What is the Local Authority Affordable Purchase Scheme?
The Local Authority Affordable Purchase Scheme helps people on moderate incomes to buy new homes at reduced prices.
How much?
The local authority takes a percentage stake in your home that covers the reduction in price. So, if you buy the home at a 20% discount, the local authority will have a 20% stake in your home.
Rules?
To qualify for this scheme you must meet certain income, property and residency criteria.
Income – calculated at 4 times your gross annual income must be less than 85.5% of the open market value of the affordable home or you must prove that you cannot get a mortgage for 85.5% of the market value of the home.
The market value of the properties is agreed by the local authority running the scheme before the scheme is launched.
You must have a 10% deposit but the help to buy can also form part of this 10%
Repayable?
You must buy back the local authority’s stake after 40 years or if you sell your home, but you can repay it any time before this. This scheme is aimed at first-time buyers, but there are some exceptions including those hoping to avail of it under the fresh start principle.
Working with all major lenders in Ireland, doddl are experts at helping first time buyers get on the property ladder, feel free to reach out to us with any questions, or start your mortgage journey here.
