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Thousands more first time buyers can avail of 30% towards new home

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Thousands more first time buyers can avail of 30% towards new home

The First Home Scheme has been extended, with the price ceiling going up in 14 counties from this week.

All new homes in Ireland worth up to €350,000 are now eligible for the scheme, irrespective of location, with price ceilings of €500,000 in areas of greatest demand.




The shared equity scheme was first launched in July 2022 in a bid to help people purchase their first homes.

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Increases of €25,000 in 14 counties came into effect yesterday. They are:

  • Carlow
  • Leitrim
  • Monaghan
  • Tipperary
  • Cavan
  • Limerick (City and County)
  • Offaly
  • Wexford
  • Donegal
  • Longford
  • Roscommon
  • Kerry
  • Mayo
  • Sligo

The changes, which have already taken effect, mean that more first-time buyers will qualify for the scheme, which sees the government and participating banks pay up to 30% of the cost of your new home in return for a stake in it.

Here’s everything you need to know about the scheme and how to apply.

What is the First Home Scheme?

The First Home Scheme will grant applicants up to 30% of the market value of the home they want to buy, in exchange for an equity stake in the property.

The scheme takes a percentage equity stake in the home, equal to the level of support provided to enable the purchase. For example, if the scheme provides 30% of the funds for your home, it will take a 30% equity interest in your home.

However, you can buy back this percentage at a later date if you want, and then you will fully own your home.

Your income is not assessed for the scheme, meaning people of all income levels can apply.

The scheme is mainly for first-time buyers who want to buy a new build, but their mortgage and deposit won’t cover the cost.

The minimum amount you can get from the scheme is 2.5% of the property purchase price, or €10,000, whichever is higher.

Conditions to avail of the First Home Scheme

There are some conditions on the scheme. If you are already using the Help to Buy Scheme, you can only get 20% of the market value of the house.

You must have a deposit of at least 10% of the property’s purchase price.

You will not qualify as a first-time buyer if you have owned a home abroad or have previously inherited a home.

If you are buying the property with someone else, they must also be a first-time buyer or ‘fresh start’ applicant.

The property has to be a newly built home in a private development. The scheme does not cover second-hand homes or self-builds.

The new home must cost less than the price limit for your local authority area. To see the full list of price limits, visit the First Home Scheme website .

The mortgage must be with a lender that is participating in the scheme. Currently, these are Bank of Ireland, Permanent TSB and Allied Irish Bank which includes AIB, Haven Mortgages and EBS.

The usual rules related to mortgages also apply. Most first-time buyers can borrow four times their gross annual income. If you are not a first-time buyer, the limit is three and a half times your gross annual income.

To see if you are eligible to apply for the scheme, visit the First Home Scheme website.


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