The First Home Scheme Ireland 2024 is a first time buyers support that allows first time buyers to borrow up to 30% of the value of their property directly from the government created scheme.
The FHS scheme can help you boost your buying budget and what you are able to borrow from the lenders making it easier to get a foot on the property ladder.
In this article, I will be going into detail about how the First Home Scheme Ireland 2024 works, what you have to do to qualify, how much can be available to you and finally how to apply. If you are thinking of buying and need more information about the First Home Scheme you can book a free advice call using the button below.
- How does the First Home Scheme Ireland 2024 work?
- How do I know if I qualify for the First Home Scheme Ireland 2024?
- How much is available to me from the First Home Scheme Ireland 2024?
- How can I apply to the First Home Scheme Ireland 2024?
- A summary of The First Home Scheme scheme Ireland 2024.
How does the First Home Scheme Ireland 2024 Work as a First Time Buyers Grant?
The First Home Scheme Ireland 2024 is a First Buyers Grant that works as an equity scheme, while the Help to Buy Scheme is a tax refund scheme.
It allows first time buyers purchasing newly built homes or those self building to receive from 2.5% up to 30% of their property value as a deposit to help reduce the mortgage amount needed.
In return the Irish Banks and Government retains a share of ownership of your home through a private company they have created to administer the scheme.
When you sell your home the FHS company will get a share of the sale price depending on how much share they took.
For example,
- Home purchased @ €300,000
- First Home Scheme Deposit @ 30% = €90,000
- Home sold @ €400,000
- Government owed 30% = €120,000
The government also has the right to interest payments on the amount advanced after 5 years, first at 1.75% then rising to 2.15% after 15 years and 2.85% after 29 years.
So for a typical mortgage of 20 years
- 10 years €90,000 @ 1.75%
- 10 years €90,000 @ 2.15%
- Total additional interest of €18,760
So in the example above the government would ultimately receive €138,760 for the €90,000 you receive under the First Home Scheme.
How do I know if I qualify for the First Home Scheme Ireland 2024?
The First Home Scheme Ireland 2024 is targeted at First Time Buyers who can’t get a large enough mortgage to afford to buy a new home. One recent tweak to the scheme allows also anyone who has been served notice of eviction and self builds to also apply for the FHS scheme.
It aims to bridge the gap between how much money you need and how much money the lender will give you.
For that reason the First Home Scheme requires you to have a mortgage of at least 70% of the properties value to qualify. If you can afford to buy without maximising your loan, then by definition you don’t need the scheme.
The First Home Scheme Ireland 2024 is available to all First Time Buyers purchasing a newly built property or self building a home under €500,000 in Dublin or Cork and down to €250,000 in some parts of the country.
| Local Authority Area | House Price Ceilings* | Self Build Ceilings | Apartment Price Ceilings |
| Cork City, Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin | €475,000 | €475,000 | €500,000 |
| Galway City | €450,000 | €450,000 | €450,000 |
| Limerick City and County | €400,000 | €400,000 | €450,000 |
| Waterford City and County | €375,000 | €375,000 | €450,000 |
*For the purposes of the First Home Scheme, duplexes fall within house price ceilings.
| Local Authority Area | Price Ceilings (all properties) |
| Wicklow County | €475,000 |
| Kildare County, Cork, Meath | €425,000 |
| County Galway | €400,000 |
| Laois, Louth, Kilkenny, Westmeath | €375,000 |
| Clare | €350,000 |
| Kerry, Mayo, Monaghan, Offaly, Roscommon, Wexford, Carlow, Cavan, Donegal, Leitrim, Longford, Sligo, Tipperary, | €325,000 |
A First Time Buyer is anyone who hasn’t previously taken purchased a property in or outside of Ireland.
Due to the governments ‘fresh start’ policy the scheme is also available to anyone who has been made bankrupt or is divorced and no longer has a share of a property.
In order to qualify, you must-
- Be a first time buyer both in Ireland and outside of Ireland
- Be moving in with an applicant who is also a first time buyer if more than one person will be purchasing the home
- Be moving into a newly built home in a private development
- Be using the property as your principal private residence for 5 years
The government has indicated that the FHS scheme will be extended to also include self build properties.
How much is available to me from the First Home Scheme Ireland 2024?
Under the First Home Scheme Ireland 2024, first time buyers can claim,
- Up to 30% of the purchase price of their new home, for example a home worth €200,000 can claim €60,000
- If you avail of the Help to Buy Scheme however the First Home Scheme is capped at 20%
As the Help to Buy Scheme is a grant it is not subject to being reclaimed or to future interest payments.
This means that a combination of funding the purchase through a 10% Help to Buy Scheme grant and a 20% First Home Scheme equity option is the best approach for most cases.
The FHS scheme is not means tested so is available for all income levels.
How can I apply to the First Home Scheme Ireland 2024?
If you think you qualify for the First Home Scheme Ireland 2024, then you should talk to a mortgage broker who can advise you on the best approach and which lenders work with the scheme.
There is also a web site dedicated to the scheme. [1]
In a Nutshell – First Home Scheme Ireland 2024
With monthly rents now often costing more than monthly mortgage repayments on the exact same property, buying a home can be an essential step in creating better financial and life outcomes.
The First Home Scheme Ireland 2024 used in conjunction with the current Help to Buy scheme may help renters trapped by these rules escape, by reducing the size of mortgages required to buy a home by a further 20%.
There are some catches to the FHS scheme bear in mind though, the only lenders in the scheme currently are PTSB, Bank of Ireland and AIB Group (which includes EBS and Haven). These lenders have the most expensive mortgages on the market.
If you wanted to switch mortgage to a cheaper lender, you would have to buy out your 20% equity stake to do so. This could severely limit your options and leave you paying through the nose on your interest repayments.
Also if you are looking to trade up a few years down the line, your equity for the trade will be worth less as you will have to take the scheme’s stake in your property into account. This could make getting the 20% deposit required for a second time buyer an impossible hurdle in some cases.
There is no doubt also that this will put further upward pressure on house prices, a similar scheme in the UK is said to have added 6% to property prices, but for those wasting thousands every month in rent, it at least offers some hope at last.
Next Steps – First Home Scheme Ireland 2024
You can find out more about the other major government support scheme, the help to buy scheme here.
Wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge or you get provisional approval in 5 minutes with our instant approval calculator, so you can get going and view some properties!
If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.
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