Buying your first home in Ireland can feel overwhelming, but the First Home Scheme offers much-needed financial support to make homeownership more accessible. This government-backed initiative helps first-time buyers bridge the gap between their mortgage, deposit, and the cost of a new home. In this guide, we’ll break down how the First Home Scheme works in Ireland, who’s eligible, and how you can apply.
What is the First Home Scheme?
The First Home Scheme Ireland is a shared equity initiative introduced by the Irish government to help first-time buyers afford new-build homes. Under the scheme, the Irish government provides financial assistance in exchange for a percentage stake in the property, reducing the amount buyers need to borrow from lenders.
The First Home Scheme is particularly beneficial for buyers struggling to meet mortgage lender criteria, ensuring they can secure a home within their budget.
How Does the First Home Scheme Work in Ireland?
By reducing the amount required upfront, the First Home Scheme enables more people to buy their first home without taking on excessive debt.
Here’s a simple breakdown of how the First Home Government Scheme operates:
- The government offers up to 30% of a property’s value (or 20% if also availing of the Help to Buy Scheme).
- Buyers must contribute at least a 10% deposit of the property’s value.
- The remaining amount is covered by a mortgage from a participating lender.
- No repayments are required on the government’s share for the first five years.
- If you decide to sell your home in the future, the government will reclaim its share based on the property’s value at that time.
The First Home Scheme applies only to new-build properties and aims to make homeownership more affordable without requiring first-time buyers to take on additional debt.
Examples of First Home Scheme for First-Time Buyers
Let’s look at how the First Home Buyers Scheme works with some real-world numbers:
Example 1: Buyer using the First Home Scheme
Let’s look at an example of a buyer purchasing a home valued at €400,000. This breakdown demonstrates how the First Home Scheme can make homeownership more accessible by reducing the amount needed for a mortgage.
- Property Price: €400,000
- Buyer’s Deposit (10%): €40,000
- Mortgage Amount (70%): €280,000
- Government Contribution (20% via First Home Scheme): €80,000
Example 2: Buyer also availing the Help to Buy Scheme
In this example, the buyer is utilizing both the First Home Scheme and the Help to Buy Grant to reduce their financial burden. With a property price of €350,000, the buyer benefits from the Help to Buy Grant to boost their deposit, while the First Home Scheme provides an additional government contribution. This approach allows for a smaller mortgage, making homeownership more affordable and manageable.
- Property Price: €350,000
- Buyer’s Deposit (10%): €35,000
- Help to Buy Grant: €30,000
- Mortgage Amount (70%): €245,000
- Government Contribution (10% via First Home Scheme): €40,000
In both scenarios, the First Home Government Scheme significantly reduces the mortgage burden on buyers, making homeownership more achievable.
Who Is Eligible for the First Home Scheme in Ireland?
To ensure accessibility while maintaining financial sustainability, the First Home Scheme has specific conditions that must be met, including deposit requirements, mortgage coverage, and property price limits.
To qualify for the First Home Scheme, applicants must:
- Be a first-time buyer or meet the criteria for fresh start applicants (e.g., individuals who have gone through divorce or insolvency).
- Be purchasing a new-build home as their primary residence.
- Be buying a property that falls within the local price ceilings (varies by location).
- Have a minimum 10% deposit and be securing a mortgage covering at least 70% of the property’s value.
If you’re unsure whether you qualify, check out the First Home Scheme Eligibility Calculator Here and our guide on what qualifies as a first time home buyer.
Does the First Home Scheme Apply to Second-Hand Homes?
No, the First Home Scheme Ireland generally only applies to new-build properties.
However there is one exception with the Tenant Home Purchase Scheme. The Tenant Home Purchase Scheme helps tenants to purchase the home they are currently renting if the landlord decides to sell. More information on the Tenant Home Purchase Scheme here.
The Government Help to Buy Scheme tax rebate, is also generally only available for newly built homes.
Benefits of the First Home Scheme
The First Home Scheme is designed to make homeownership more accessible by reducing upfront costs, easing mortgage requirements, and offering flexibility in repayments. This initiative provides several advantages for first-time buyers, making it a valuable opportunity for those looking to step onto the property ladder. Some key benefits of the First Home Scheme include:
✔️ Lower Mortgage Requirements – Reduces the mortgage amount needed from lenders.
✔️ No Repayments for 5 Years – No pressure to pay back the government’s stake immediately.
✔️ Increased Affordability – Helps bridge the affordability gap for first-time buyers.
✔️ Option to Buy Back Shares – Buyers can purchase the government’s share later.
How to Apply for the First Home Scheme in Ireland
To successfully apply for the First Home Scheme in Ireland, you’ll need to follow a step-by-step process, from checking your eligibility to finalizing your purchase.
Applying for the First Home Owners Scheme involves these steps:
- Check Eligibility – Confirm you meet the criteria and property price ceilings.
- Secure Mortgage Approval – Get approval from a participating lender.
- Apply Online – Submit an application via the First Home Scheme portal.
- Receive Approval – If successful, the government will confirm the equity share contribution.
- Complete the Purchase – Finalize the home purchase with your solicitor.
How MortgageLine Can Help First-Time Buyers
At MortgageLine, we specialize in securing the best mortgages for first-time buyers, helping you navigate the First Time Home Buyer Scheme Ireland with ease. We provide expert guidance on:
- Mortgage approval & lender options
- Maximizing government support schemes
- How much you can borrow for a mortgage in Ireland
- Understanding the repayment process
If you’re wondering “Do I need a mortgage advisor?”, our detailed guide explains the benefits of using a mortgage broker.
📞 Contact us today for a free mortgage review call!
FAQs
Is there a first-time buyers grant in Ireland?
Yes! The Government Help to Buy Scheme provides up to €30,000 to help first-time buyers with their deposit.
Do I have to pay back the First Home Scheme?
Yes, but there are no repayments for the first five years. After that, you can buy back the government’s share at any time.
What are the drawbacks of the First Home Scheme?
- The government retains a stake in your home.
- You may need to pay back the equity share later, either in instalments or upon selling the property.
- Limited to new-build homes only.
Final Thoughts
The First Home Scheme Ireland is a fantastic support for first-time buyers struggling with affordability. If you’re considering homeownership, let MortgageLine guide you through the process.
📞 Get in touch today and take your first step towards owning your dream home!
