First Home Scheme (FHS) for First Time Buyers

The First Home scheme was established to assist first time buyers in bridging the difference between what is allowed them under mortgage lending guidelines of the Central Bank of Ireland and what amount needs to be borrowed (their “borrowable amount” and their required purchase amount).

In this guide you will find:

1. What is the First Home Scheme Ireland?
2. Eligibility Criteria for First Home Scheme as a first-time buyer
3. Pros and Cons of the First Home Scheme
4. Does the First Home Scheme Apply to Second-Hand Properties?
5. How Much Can I Borrow Under the First Home Scheme?
6. Local authority ceilings for first home scheme
7. How do I apply for the First Home Scheme Ireland?
8. Why choose JC Mortgage Brokers as your First Home Scheme Applicant Partner?

What is the First Home Scheme Ireland?

The First Home Scheme also referred to as FHS scheme is a government-backed shared equity scheme designed to help first-time buyers in Ireland bridge the gap between the maximum mortgage they can secure under Central Bank lending rules and the actual price of a new home they wish to buy. Under this scheme, eligible first-time buyers defined as those who have never previously owned or built a home in Ireland or abroad can apply for up to 30% of the property’s purchase price (or build cost for self-builds) as an equity stake from the government, provided they have mortgage approval from a participating lender and can contribute a minimum 10% deposit themselves.

The property must be a newly built home in a private development, a qualifying self-build, or in some cases, a home you are renting and now wish to purchase if your landlord is selling. Applicants must borrow the maximum amount available to them (up to 4 times their income).

There are no specific income limits, but local authority price ceilings apply, and the home must be your principal private residence.

The FHS scheme is also open to ‘fresh start’ applicants who have lost ownership of a previous home due to divorce, separation, or insolvency, provided they no longer have a financial interest in any property. Service charges apply from year six, and all applications are subject to additional screening and eligibility checks. The First Home Scheme aims to make homeownership more accessible for first-time buyers in Dublin and across Ireland by closing the affordability gap for new-build homes

Interested in applying to the Ireland First Home Scheme. Contact JC Mortgage Brokers for a free consultation and expert mortgage advice. Make contact today on 01-8102032 or email info@jcmortgages.ie.

Eligibility Criteria for First Home Scheme as a first-time buyer

The First Home Scheme is designed to help first-time buyers overcome financial barriers when purchasing a newly built home in Ireland. To be eligible, applicants must meet specific criteria that ensure the scheme supports those genuinely entering the property market for the first time or qualifying under special circumstances. Below are the key eligibility requirements for first-time buyers under the scheme:

• Must be over 18 years of age
• Never previously purchased or built a home in Ireland or abroad
• Must not currently own or have a beneficial interest in any property
• ‘Fresh start’ applicants (those who lost previous home ownership due to divorce, separation, or insolvency) may also qualify
• Must have mortgage approval from a participating lender
• The mortgage must cover at least 70% of the property’s value
• Required to borrow the maximum amount available (up to 4 times income)
• Minimum 10% deposit required, with site equity allowed for self-builds
• Property must be a newly built home or apartment in a private development, a qualifying self-build, or, in limited cases, a rental home being sold by the landlord
• Home must be located in the Republic of Ireland and within local authority price limits
• Property must be intended as the applicant’s principal private residence
• No specific household income limits, but all applications undergo additional screening, including anti-money laundering and fraud checks

Pros and Cons of the First Home Scheme

Pros:

• Makes it easier for first-time buyers to get on the property ladder by bridging the gap between their mortgage, deposit, and the cost of a new home, reducing the size of the mortgage needed and making monthly repayments more manageable
• Offers up to 30% of the property’s value (or 20% if also using the Help to Buy Scheme) as a shared equity stake, without income limits, and with no repayments required on the government’s share for the first five years
• Open to both first-time buyers and ‘fresh start’ applicants (those who lost a previous home due to separation, divorce, or insolvency)
• Flexibility to buy out the government’s equity share at any time, either partially or in full, with no obligation unless a mandatory event occurs, such as selling the property
• Supported by Ireland’s main banks, ensuring reliability and sustained backing for applicants
• Can help buyers stay in their local area, including in limited cases where a tenant can purchase their rented home if the landlord is selling

Cons:

• The government takes an equity stake in your home, which must eventually be repaid—potentially with interest or increased service charges after year five—raising the total cost over time
• Applies only to newly built properties within local authority price ceilings, limiting choice and excluding second-hand homes (except in specific tenant purchase cases)
• You must use a participating lender, which may not always offer the most competitive mortgage rates
• Service charges apply on the government’s equity share from year six onwards, and these charges increase over time if the equity is not repaid
• When selling your home or switching to a non-participating lender, you must redeem the government’s share and any outstanding service charges, which can reduce your profit from the sale and complicate switching mortgages
• The scheme is not regulated by the Central Bank of Ireland, so it falls outside some statutory consumer protections

Does the First Home Scheme Apply to Second-Hand Properties?

The First Home Scheme does not apply to second-hand properties; it is strictly available for newly built homes or self-builds in Ireland. The only exception is if you are currently renting a property and your landlord decides to sell—under these circumstances, you may be eligible to use the First Home Scheme to purchase the home you are living in, provided all other scheme conditions are met.

How Much Can I Borrow Under the First Home Scheme?

Under the First Home Scheme, first-time buyers in Ireland can receive up to 30% of the property’s purchase price or build cost as a shared equity stake to bridge the gap between their mortgage (typically capped at four times their income) and the amount needed to buy a new home. If you are also using the Help to Buy scheme for your purchase, the maximum you can receive from the First Home Scheme is reduced to 20% of the property price. Local authority price ceilings apply, and the property must be a newly built home, a qualifying self-build, or, in certain cases, a property you are renting that is being sold by your landlord.

Example 1: First Home Scheme with Help to Buy Scheme

Key Points:

• Your borrowing capacity is mainly determined by your income (4x gross salary).
• HTB can cover your deposit up to €30,000.
• FHS can bridge the gap up to 20% of the property price if you use HTB, subject to local price ceilings and your actual shortfall.
• The maximum property price you can target depends on your income, deposit, and the 20% FHS limit.
• Always check the latest price ceilings for your local authority area and use the FHS eligibility calculator for precise figures.

Example 2: First Home Scheme without Help to Buy Scheme

If you are not using the Help to Buy (HTB) scheme, the First Home Scheme (FHS) can provide up to 30% of the property purchase price as a shared equity stake, subject to a maximum of €135,000 and local authority price ceilings

Key Points:

• Without HTB, the FHS can provide up to 30% of the property price (max €135,000).
• You must provide at least a 10% deposit from your own funds.
• Your maximum property price is determined by your income, deposit, and the 30% FHS cap

Local authority ceilings for first home scheme

Here are the current local authority property price ceilings for the First Home Scheme in Ireland. These limits apply to houses, apartments, and self-builds, and your property must fall within the relevant ceiling for your area to qualify.

Note: Duplexes are included under house price limits. Always check the latest updates, as these ceilings are reviewed regularly and may change.

How do I apply for the First Home Scheme Ireland?

• Check your eligibility using the official First Home Scheme online eligibility calculator.
• Obtain Mortgage Approval in Principle (AIP) from a participating lender (AIP must be valid for at least eight weeks).
• Register and apply online via the First Home Scheme customer portal, providing your personal details, property information, and solicitor’s details.
• Upload required documents, including:
  • Your AIP letter from the lender
  • Valid photo ID
  • Proof of address (dated within the last six months)
  • For self-builds: a certified estimate of build costs from a qualified professional
• Application assessment: The scheme will review your application and documentation.
• Receive an Eligibility Certificate if approved, showing the equity amount you may qualify for.
• Share the Eligibility Certificate with your mortgage lender to proceed with your full mortgage approval.
• Upload your formal mortgage offer and any additional documents to the First Home Scheme portal.
• Receive and sign the Customer Contract (with your solicitor), formalising the equity share agreement.
• Drawdown of funds: Scheme funds are transferred to your solicitor to complete the purchase, or, for self-builds, drawn down within 12 months (with 24 months to complete construction).

Why choose JC Mortgage Brokers as your First Home Scheme Applicant Partner?

With 20+ years in the mortgage industry, John Coleman Mortgage Broker and his team of expert mortgage advisors are ready to help you with your First Home Scheme application, ensuring you have a specialist on hand from the start to the end of your mortgage process. Contact JC Mortgage Brokers for a free consultation and expert mortgage advice. Make contact today on 01-8102032 or email info@jcmortgages.ie.

Related links:

• First Home Scheme Ireland (official website)
• First Home Scheme Eligibility Calculator
• First Home Scheme Tenant Home Purchase

You may also be interested in:

• Mortgage Calculator – monthly repayments
• First time buyers guide for the Irish mortgage market
• Bridging loan Ireland – gap financing