Buying your first home is one of the biggest financial and legal decisions you will ever make. In Ireland, rising house prices mean many first-time buyers struggle to bridge the gap between their mortgage, savings, and the price of a new home. To address this, the Irish Government introduced the First Home Scheme, a shared equity scheme designed to help first-time buyers and certain other purchasers buy a newly built home or self-build property.
The First Home Scheme Explained: A Complete Guide for First-Time Buyers in Ireland
Buying your first home is one of the biggest financial and legal decisions you will ever make. In Ireland, rising house prices mean many first-time buyers struggle to bridge the gap between their mortgage, savings, and the price of a new home.
To address this, the Irish Government introduced the First Home Scheme, a shared equity scheme designed to help first-time buyers and certain other purchasers buy a newly built home or self-build property.
This guide explains how the First Home Scheme works, who qualifies, the legal implications, and what buyers should consider before applying.
What Is the First Home Scheme?
The First Home Scheme (FHS) is a shared equity scheme where the Government and participating lenders take an equity stake in your home to help fund the purchase.
If your mortgage and deposit are not enough to buy a newly built home or self-build property, the scheme can provide up to 30% of the property’s purchase price (or up to 20% if you are also using the Help to Buy scheme).
In return, the State receives a percentage ownership (equity share) in your property, which you can buy back over time.
Who Is Eligible for the First Home Scheme?
You may qualify if you meet the following conditions:
1. First-Time Buyer (or Fresh Start Applicant)
You must be:
2. Buying a New Home or Self-Build
The property must be:
Second-hand homes do not qualify.
3. Mortgage Approval
You must:
4. Price Caps Apply
The property price must fall within the regional price caps, which vary depending on location and property type.
How Much Can You Get Under the First Home Scheme?
The scheme can fund:
Example:
The State then owns 20% of your home until you repay it.
Do You Pay Interest on the First Home Scheme?
Yes — but not immediately.
Can You Buy Back the State’s Share?
Yes. You can redeem (buy back) some or all of the equity share:
The amount payable is based on the market value of the property at the time of redemption, not the original purchase price.
What Happens When You Sell the Property?
When you sell:
If the property has increased in value, the cost of redeeming the equity will also increase.
Legal Considerations for First-Time Buyers
The First Home Scheme adds extra legal complexity to your purchase.
A solicitor will:
How the First Home Scheme Works With Help to Buy
You can use both schemes together, but:
Advantages of the First Home Scheme
Potential Disadvantages to Consider
Is the First Home Scheme Right for You?
The scheme can be extremely helpful, but it is not suitable for everyone. Buyers should consider:
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