The Help to Buy scheme was created to support first-time property buyers in buying a new property as their principal residence. It is becoming increasing common for developers to accept a booking deposit along with the HTB funds as the balance deposit.
The HTB scheme explained
The Help to Buy scheme was created to support first-time property buyers in buying a new property as their principal residence.
What are the conditions of HTB?
The initiative is designed to help you with the deposit to buy or build a new house or apartment based on certain conditions:
- You must live there for five years after you buy/build it
- You must be tax compliant
- You must be a first time buyer - If you are buying it jointly with another person, this person must also be a first-time buyer (gifted or inherited property may not affect your eligibility).
- The building itself must be a new build and must have a purchase value of less than €500,000 if bought after 1 January 2017.
- The contractor you are buying your home from must also be approved by Revenue.
- You must take out a mortgage to qualify for the scheme and this has to be aminimum of 70% of the property's purchase value.
How much can you claim?
The amount you can claim is the lesser of: €20,000 (increased to €30,000 between 23 July 2020 and 31 December 2021 under the enhanced HTB scheme), 5% of the purchase price of a new home (increased to 10% between 23 July 2020 and 31 December 2021) or the amount of Income Tax and Deposit Interest Retention Tax(DIRT) you have paid for the four years before you apply.
How do I apply?
You first of all obtain approval under the scheme before you sign contracts.
Once contracts are signed by both parties i.e. you and the developer, you will have to upload a copy of the contract to the HTB system online. This will generate new HTB codes which you share with your solicitor. The HTB funds will then be released to the developer directly prior to closing.
Can I use the HTB funds as a deposit?
It is becoming increasing common for developers to accept a booking deposit along with the HTB funds as the balance deposit.
Clawback
HTB funds can be clawed back, however, if you were not entitled to it, you did not live in the property for a minimum of five years or you did not complete the process of buying or building the property in question.
Are you buying or selling property in Ireland? Whether you're a first-time buyer, a seasoned investor, or navigating a complex property dispute, Cosgrove Gaynard Solicitors offers the trusted legal guidance you need. As a top-rated property solicitor in Ireland, we provide comprehensive and client-focused property law services tailored to your needs.
Text LinkLooking for a reliable solicitor in Dublin? Whether you're facing a legal dispute, buying a property, or need professional advice, having an experienced Dublin-based solicitor on your side is essential. At Cosgrove Gaynard Solicitors, we offer comprehensive legal services tailored to individuals, families, and businesses across Ireland’s capital.
Text LinkPurchasing property in Ireland remains a significant milestone, whether you're a first-time buyer, upgrading your home, or investing in real estate. As we progress through 2025, understanding the current landscape is crucial to navigating the process effectively.
Text LinkWhen entering into a commercial lease in Ireland, understanding the key clauses of the agreement is crucial for both landlords and tenants. These clauses define the rights, obligations, and liabilities of each party, and can have long-term implications for your business. This guide outlines the most important clauses found in Irish commercial leases, helping you to make informed decisions and avoid costly disputes.
Text LinkSuffering a road traffic accident abroad can be a traumatic experience—made even more stressful by the legal complexities that follow. For Irish residents who have been injured in a road accident while on holiday outside Ireland, it is possible to bring a claim in Ireland without having to travel abroad or use lawyers abroad, in certain circumstances. The key issue is jurisdiction, which refers to whether Irish courts have the legal authority to hear your case. Under EU regulations and international private law, if the at-fault driver or their insurer has a presence in Ireland or is domiciled in an EU member state, you may be able to bring your claim in the Irish courts.
Text LinkBuying or selling property in Ireland? Discover why hiring a property solicitor is essential for a smooth, legal, and stress-free transaction. Get expert tips today.
Text Link39 Waterloo Road,
Dublin 4
DX 109060 Fitzwilliam
Phone: 01 234 0044
Fax: 01 234 0047