What Is the First Home Scheme in Ireland?
The First Home Scheme is a shared equity initiative launched by the Irish Government to assist first-time buyers in purchasing newly built homes. It provides financial support in return for a minority equity stake in the property, reducing the mortgage amount required from traditional lenders.
This scheme is especially helpful for buyers who struggle to meet strict lending criteria, making it easier to secure a home that fits their needs and budget.
How Does the First Home Scheme Work?
The First Home Scheme is designed to bridge the affordability gap, helping more people get on the property ladder without taking on excessive debt.
Here’s how it works:
The government can fund up to 30% of the property value, or up to 20% if the buyer is also availing of the Help to Buy scheme.
Buyers must contribute a minimum 10% deposit of the property’s value.
The balance is financed through a mortgage with a participating lender.
No repayments are required on the government’s share for the first five years.
If the property is sold, the government is repaid its share based on the current market value at the time of sale.
This scheme applies only to new-build homes and aims to make homeownership more achievable by reducing reliance on high-value mortgages.
Real-Life Examples of the First Home Scheme
🔹 Example 1: Buyer Using the FHS Alone
Property Price: €450,000
Deposit : €20,000
Mortgage : €310,000
Government Max Contribution (30%): €135,000
🔹 Example 2: Buyer Using the FHS + Help to Buy Grant
Property Price: €350,000
Deposit : €15,000
Help to Buy Grant: €30,000
Mortgage : €250,000
Government Max Contribution : €70,000
Combining both schemes further reduces the mortgage size, easing the financial burden on the buyer.
Who Is Eligible for the First Home Scheme?
To qualify for the scheme, applicants must meet the following criteria:
Be a first-time buyer or a Fresh Start applicant (e.g. following divorce or insolvency).
Be purchasing a newly built home to live in as their main residence.
Ensure the property falls within the local price caps, which vary by location.
Have a minimum 10% deposit.
Secure a mortgage for at least 70% of the home’s value.
Not sure if you qualify? Use the First Home Scheme Eligibility Calculator or review our full guide for first-time buyers in Ireland.
Can You Use the Scheme for Second-Hand Homes?
The First Home Scheme is exclusively for new-build properties.
Key Benefits
The scheme offers several compelling advantages for first-time buyers:
✔️ Lower Mortgage Requirements – You borrow less from lenders, reducing monthly repayments.
✔️ No Repayments for 5 Years – Gives buyers time to settle in before repaying the government’s share.
✔️ Increased Affordability – Helps those who might otherwise be priced out of the market.
✔️ Option to Buy Out Government’s Share – You can repurchase the government’s stake in the future.
How to Apply for the First Home Scheme
Getting started with the First Home Scheme involves a few key steps:
Check Your Eligibility – Ensure you meet the income, property, and deposit requirements.
Secure Mortgage Approval – Obtain approval from a participating lender.
Apply Online – Complete your application through the official First Home Scheme portal.
Receive Offer – If approved, the government will confirm their equity contribution.
Complete the Purchase – Finalize the purchase with your solicitor and mortgage provider.
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