What is the First Home Scheme?
The First Home Scheme (FHS) is a shared equity scheme designed to help first-time buyers and certain eligible buyers bridge the gap between:
– Their mortgage
– Their deposit
– And the price of a newly built home
If you qualify, the Scheme contributes part of the purchase price in exchange for a percentage ownership (equity share) in your home.
What does the Scheme provide?
The Scheme can contribute:
– Up to 30% of the property price if you are not using Help to Buy
– Up to 20% if you are using Help to Buy
The minimum equity share is 2.5% of the property price or €10,000 (whichever is higher)
The State does not charge interest for the first five years
- From year six onwards, a service charge applies if the equity share has not been repaid.
- From year six onwards, a service charge applies if the equity share has not been repaid.
What type of property can I buy?
You can only use the First Home Scheme to buy:
– A newly built house or apartment
– In a private development
– Located in the Republic of Ireland
– Intended as your principal private residence
Each local authority has a maximum price ceiling.
If the property price exceeds the ceiling for that area, the Scheme cannot be used.
Who is eligible?
You may be eligible if you:
- Are over 18
- Are a first-time buyer, or:
- A previously married/cohabiting person who no longer has any interest in a former family home, or
- Someone who lost a home through insolvency or bankruptcy
- Have the right to live in Ireland
- Have Mortgage Approval in Principle from a Participating Lender
- Borrow the maximum mortgage available to you (up to 4× income)
- Have at least a 10% deposit
- Have not used a macro-prudential exception
Your income is not assessed by the First Home Scheme itself — only by your lender.
How does the equity share work?
– The Scheme owns a percentage of your home, not a fixed euro amount
– If your home increases in value, the cost to buy out the Scheme’s share increases
– If your home decreases in value, the cost to buy out the share decreases
- You can:
- Buy back some or all of the equity share at any time
- Make partial redemptions (minimum 5% of the original FHS contribution)
A full repayment is required if:
- You sell the property
- It stops being your main home
- You switch to a non-participating lender
- The homeowner(s) pass away
Are there any charges?
- Years 0–5: No charges
- From Year 6 onwards: A service charge applies if the equity share remains
Service charge rates:
- Years 6–15: 1.75%
- Years 16–29: 2.15%
- Year 30+: 2.85%
You can:
- Pay monthly or annually
- Pay a reduced amount
- Defer payment (charges still accrue)
Paying the service charge does not reduce the equity share — only buying it back does.
Can I renovate or extend my home?
Yes.
If you make material alterations (such as extensions, attic conversions, or major energy upgrades):
- The added value from those works is excluded when calculating the Scheme’s share
- You should keep records and receipts, as they may be required later
Can I top up or switch my mortgage?
- You can top up your mortgage with a participating lender, provided:
- The funds are for home improvements, medical/education needs, or buying back equity
- You retain at least 10% ownership of the property
- You can switch to another participating lender without repaying the equity
- Switching to a non-participating lender requires full repayment of the equity share
How do I apply?
- Get Mortgage Approval in Principle from a participating lender
- Apply online via firsthomescheme.ie
- Receive an Eligibility Certificate (this is not a loan offer)
- Proceed with your mortgage
- Sign the Customer Contract with the Scheme
- Complete your home purchase
Important things to know
- Property values can rise or fall
- The Scheme is not regulated by the Central Bank
- Independent legal and financial advice is strongly recommended
