The First Home Scheme: Your Guide to Getting on the Property Ladder in Ireland

What is the First Home Scheme?

The First Home Scheme (FHS) is a government-backed shared equity initiative designed to bridge the funding gap for first-time buyers in Ireland. The scheme helps eligible buyers purchase new homes by providing up to 30% of the property’s cost in partnership with participating lenders ¹.

Who Can Access the First Home Scheme?

The scheme is available to first-time buyers and eligible ‘fresh start’ applicants looking to purchase new-build homes or undertake self-builds anywhere in the Republic of Ireland ¹.

Do I Qualify for the First Home Scheme?

To be eligible, you must meet the following criteria:

1. Be a first-time buyer or qualify under specific exemptions:

• Never purchased or built a property before
• Those who previously owned property with a former spouse/partner but no longer retain any interest following relationship breakdown
• Those who sold property due to insolvency or bankruptcy ³

2. Be over 18 years of age and have the right to reside in Ireland ³
3. Have mortgage approval from a participating lender (currently AIB, Bank of Ireland, or Permanent TSB) ²
4. Borrow the maximum amount available (up to 3.5 times income) ³
5. Have a minimum 10% deposit of the property price ³

How Much Funding Can I Get?

The funding available depends on whether you’re using the Help to Buy (HTB) scheme:

• Up to 30% of the property’s value if not using HTB
• Up to 20% if using HTB alongside the First Home Scheme ³

Are There Any Charges?

Yes, there are service charges that apply:

• No charges for the first 5 years
• From year 6: 1.75% of the original equity provided
• Year 16 onwards: 2.15%
• Year 30 onwards: 2.85% ²

Can I Buy Back the Equity Share?

Yes, you can buy back some or all of the equity share at any time. You’re allowed a maximum of 2 partial buyouts per year. The buyout amount is based on the current market value of the property at the time ².

How Do I Apply?

The application process is user-friendly and involves these steps:

1. Check eligibility and secure mortgage approval in principle from a participating lender
2. Apply online through the First Home Scheme portal
3. Receive an Eligibility Certificate indicating the FHS amount you qualify for
4. Get your mortgage Letter of Offer
5. Submit required documents to progress your application ¹

Important Considerations:

• Property prices can fluctuate, affecting the equity amount you need to repay
• The scheme cannot be used with Local Authority Affordable Purchase Scheme or Local Authority Home Loan ¹
• The property must be within the local authority price ceiling for your area ³

This comprehensive scheme has been designed to make homeownership more accessible for first-time buyers, with €400 million available to facilitate the purchase of up to 8,000 homes over a 5-year period ².

Remember to seek independent financial and legal advice before applying for the First Home Scheme to ensure it’s the right choice for your circumstances.