What is the First Home Scheme (FHS)?
The ‘First Home’ scheme aims to bridge the gap for eligible purchasers between their deposit and mortgage, and the price of new home sold through the private market (subject to regional price ceilings reflecting median prices for the local first-time buyer market).
This scheme uses an equity share model to assist with eligible purchases. This means that the scheme will take a percentage equity stake in the home equal to the level of support provided to enable the purchase. If the scheme provides 20% of the funds for a purchase, for example, it will take a 20% equity interest in the home.
Eligibility
The scheme is primarily targeted at first-time buyers and self-builders who are seeking to buy a newly constructed home, but who cannot secure the full amount required from their mortgage and deposit.
Under the government’s ‘Fresh Start’ principle, people who are separated or divorced or whose relationship has ended, or who have undergone insolvency proceedings and have no interest in their former home, are also be eligible to apply for support through this Scheme.
Frequently Asked Questions
You must be a first time buyer or fresh start applicant who is over 18 and have the right to live in Ireland.
You are a first time buyer if:
- You have not previously bought or built a property to live in.
- You do not own or have an interest in any property in the Republic of Ireland or abroad.
You are a fresh start applicant if you previously owned a home, but you no longer have a financial interest in it because:
- You are now divorced, separated or your relationship has ended.
- You have gone through personal insolvency or bankruptcy.
The FHS is funded by the Government of Ireland through the Department of Housing, Local Government and Heritage (DHLGH) and Participating Lenders, who will provide equity finance to qualifying applicants.
It is expected the FHS will be available to new homebuyers until 2025. This timeframe may be extended depending on the number of Participating Lenders and the number of applications received.
The property you purchase must be a newly constructed home within a private development. The scheme does not apply to second-hand homes or self-built homes. Your new home must have a market value below the price limit set for your local authority area.
These limits vary based on the location and type of property you buy. They are tied to the median price for first-time buyers in each area and will be reviewed and adjusted regularly if necessary.
There is no charge for the first five years under the FHS, meaning the first service charge rate begins at the start of year six. Buyers have the option to buy back the stake at any time, but it is not a requirement.
The service charge rates are fixed for the life of the equity facility, and begin at 1.75% for years 6-15.
Once you are confident you satisfy the eligibility criteria and have fulfilled all requirements, you can apply online.