The First Home Scheme was introduced by the Irish Government in July 2022. This scheme aims to bridge the gap for those people who have saved their deposit, identified the type of house they want and the location they want to live in, arranged a mortgage of multiple times their salary – but find there is still a shortfall on the houses they want to buy. The Government pays up to 30% of the value of house and retains that percentage in equity. For many buyers, this can be the key to finally having a home of their own.
This scheme has many positives going for it. The equity does not need to be paid back until you sell, rent out your home or satisfy a few other criteria. You can live there for thirty to forty years, safe in the knowledge that no one will come looking for that money – or tell you that you can’t decorate the sitting room! But you do have the option to buy back that equity at any time should you wish.
Of course, there are a number of criteria you must meet in order to be eligible. There are also a number of criteria that the house must meet, chief of which is that it must be a new build. There is also a ceiling price for each county, and if the house you desire is above this price then the scheme simply won’t consider your application. You can find out more about the exact specifications at https://www.firsthomescheme.ie/about/
This website also has a handy Eligibility Calculator that is very user friendly. Try it today to see if the First Home Scheme could help you get on the property ladder. https://www.firsthomescheme.ie/eligibility-calculator/
Here’s a simple example of how the scheme works
| David | Never owned a property (first-time buyer) |
| Nicola | Never owned a property (first-time buyer) |
| Joint salary | €100,000 |
| Property purchase price (Dublin) | €450,000 |
| Maximum borrowing (3.5x salary) | €350,000 |
| Deposit | €30,000 |
| Help to Buy | €20,000 |
| Shortfall that could be met with the FHS | €50,000 |
As we mentioned earlier, you can buy back the equity in your home at any time. Here’s an example of one issue that could arise
| Emma | Never owned a property (first-time buyer) |
| Shaun | Never owned a property (first-time buyer) |
| Joint salary | €100,000 |
| Property purchase price (Dublin) | €450,000 |
| Maximum borrowing (3.5x salary) | €350,000 |
| Deposit | €45,000 |
| Shortfall that could be met with the FHS | €55,000 |
There are a few things to be aware of, but overall this scheme is well worth considering by any potential purchaser who fulfils all the qualification criteria.
