Guide to the First Home Scheme

The First Home Scheme

The First Home Scheme is part of “Housing for All - a New Housing Plan for Ireland” which is the government’s new housing plan to 2030. The First Home Scheme (FHS) is a shared equity scheme, sponsored by the Government of Ireland (Department of Housing, Local Government & Heritage) and participating lenders.

We have designed The First Home Scheme Guide to help you understand the scheme and to help you navigate your way through the application process. The FHS was launched in July 2022, to help make homeownership a reality for buyers for new-build houses, apartments, and duplexes.

How does it work?

The aim is to bridge the gap between the amount of an eligible buyer’s deposit and mortgage, and the price of the new home. If you are eligible, the FHS will take an equity share in the ownership of your new home by way of charge on the property, i.e., eligible buyers will receive funds from the FHS in return for an equity stake in the home.

*Note - Self-builds and second-hand properties are excluded from the FHS.

The Minimum Equity Facility Available is 2.5% of the property price or €10,000.
The Maximum Equity Facility Available is calculated as 30% of the property price.
The Maximum Equity Facility Available if the buyer is using the Help to Buy, is 20% of the property price.

Details of Help To Buy can be found on the Revenue’s website , and examples, including the HTB, can be found in the Homebuyers Guide on the Guides/Resources page of The First Home Scheme

You will need to check your eligibility; you can do this on the First Homes Scheme website eligibility calculator.
- You must be over the age of 18
- The new home will need to be your Principal Private Residence
- You must have a minimum deposit of 10% of the property purchase price
- You must borrow the maximum mortgage amount available to you from a Participating Lender (up to 3.5 times your income*)
- The property type must be a house, duplex, or an apartment
- The property must meet the price ceilings per your local authority area
- You must be a First Time Buyer or if divorced, you must not retain a beneficial interest in the previous family home.
- You must have a mortgage approval with a participating lender.
*There are no specific household income limits applicable if you wish to participate in the FHS.

A participating lender is an authorised mortgage lender that has invested in the FHS and becomes a shareholder in the properties they help to fund. The participating lenders are Allied Irish Banks plc (including AIB, Haven Mortgages, and EBS), Bank of Ireland Group plc, and permanent TSB plc.
The application form is simple and straightforward
- You will need a mortgage approval in principle (AIP) from a participating lender
- Photo ID for all homebuyers, valid for at least another six months
- Current address verification (dated in the last six months) for all homebuyers
Your application will be reviewed and, if approved, you’ll receive an Eligibility Certificate. It is an indicative estimate of the minimum and maximum amount of equity you qualify for based on the information you provided. You will need to provide the Eligibility Certificate to your participating lender.
You will need to upload your mortgage letter of offer, along with any other documentation that is specified on your eligibility certificate, to the FHS customer portal for assessment.
Your FHS equity facility is now set up. The FHS will then release funds to your solicitor’s account, and your solicitor can finalise the property purchase on your behalf in parallel with the mortgage process.
For the first five years you own the property, there will be no service charge.

A service charge will apply to your account from the start of year six. The annual service charge is calculated by multiplying the First Home Scheme equity share amount by the service charge rate for the year in question.

Service charges accrue daily and are applied to your account monthly in arrears, so your monthly service charge may vary given the number of days in the month.

Years Service Charge Rate

0-5 0.00%

6-15 1.75%

16-19 2.15%

30+ 2.85%

You can choose whether you want to:
- pay the service charge by monthly Direct Debit, Electronic Funds Transfer (EFT), or via a debit card facility
- pay the full annual service charge or make 12 monthly instalments
- pay a reduced amount if you can’t afford the full monthly service charge
- defer payment until another date
Note: there is no additional cost to defer the service charge, but it will continue to accrue against your account, and you will need to pay it later.

Example one: single first-time buyer

Salary	€65,000
Property Price	€350,000
Deposit (10% of Purchase Price)	€35,000
Mortgage available (Up to 3.5x salary)	€227,500
Equity loan required (25%)	€87,500

Example two: two homebuyers, both first-time buyers

Salary	€95,000
Property Price	€450,000
Deposit (10% of Purchase Price)	€45,000
Mortgage available (Up to 3.5x salary)	€332,500
Equity loan required (16%)	€72,500

Example three: two homebuyers, both first-time buyers using the Help to Buy

Salary	€80,000
Property Price	€400,000
Deposit (10% of Purchase Price)	€40,000
Help to Buy	€30,000
Mortgage available (Up to 3.5x salary)	€280,000
Equity loan required (12.5%)	€50,000