How Ireland’s First Home Scheme Supports New Homeowners.
Buying your first home can feel like a daunting task, especially with rising property prices and the challenges of saving for a deposit. Thankfully, the First Home Scheme is designed to support first-time buyers, making home ownership more accessible and achievable for many across the country.
The First Home Scheme is a government-backed initiative that helps bridge the gap between what buyers can afford and the purchase price of their new home. By offering shared equity loans, the scheme enables eligible applicants to buy a newly built home or apartment, reducing the financial burden and making the process more manageable.
To qualify for the First Home Scheme, you must be a first-time buyer purchasing a newly built property within the price limits set for your area. The scheme is flexible, allowing you to repay the loan at any time without penalty, and you can use it alongside the Help to Buy initiative for even more support. This means that for many, the dream of owning their first home is closer than ever before.
If you are considering purchasing your first home and struggling with affordability or deposit requirements, exploring the First Home Scheme could be a valuable step.
Buyer Eligibility
To be eligible for the scheme the buyer must meet the following conditions
- Be over 18 years of age
- Be a first-time buyer or other eligible home buyer
- Have amortgage approval with a participating lender
- Borrow the maximum amount available from one of the participating lenders
- Have a minimum deposit of 10% of the property purchase price
Property Eligibility
To be eligible for the scheme the property being purchased must meet the following requirements
- Be a newly built house or apartment in a private development in the Republic of Ireland
- Be bought as a principal private residence
- Be within the local authority property price ceiling for the property type
Equity
The scheme can fund up to 30 % of the market value of the property unless the buyer is availing of the help to buy incentive. In this case the maximum funding is reduced to 20%
The minimum equity share is 2.5% of the property price of €10,000 whichever is higher.
There aren’t any service charges for the first five years of ownership.
From year 6 onwards annual charges are applied to the equity share of the property.
Redemption of Equity Share
A partial redemption of a minimum of 5% is permitted of the original equity amount.
Only two partial redemptions are permitted in any 12-month period.
As the scheme is based on a percentage of the value of the property the equity share to be redeemed will also be based on the same percentage of the current market value of the property.
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