The First Home Scheme (FHS) makes home ownership achievable by bridging the gap for first-time buyers and other eligible homebuyers between their deposit and mortgage, and the price of their new home.
It is what’s known as a shared equity scheme. This means that homebuyers can receive funds from the Scheme in return for the FHS taking a percentage ownership in the property.
First Home Scheme at a glance
- The FHS is a shared equity scheme
- Available for qualifying properties
- Price ceilings apply by local authority
- Not a loan
- Get up to 30% of the property purchase price or build cost (for self-builds)
- Service charges apply from year six
Eligibility
To be eligible for the Scheme you must:
- be over 18 years of age
- be a first-time buyer or other eligible homebuyer
- have Mortgage Approval with a Participating Lender
- borrow the maximum amount available to you from one of the Participating Lenders (up to 4 times your income*)
- not be availing of a Macro Prudential Exception (MPE) with a Participating Lender
- have a minimum deposit of 10% of the property purchase price or build cost (for self-builds, equity in your site can contribute to your deposit)
All applications are subject to additional screening processes including anti-money laundering, fraud and terrorist screening, criminal conviction data searches and adverse media searches. FHS may at its sole discretion reject an application if FHS does not consider you as a suitable applicant.
*there are no specific household income limits required to participate in the FHS.
To be eligible for the scheme, a Qualifying Property must:
- be a new build house or apartment in a private development
OR a self-build on a privately owned site
OR a house or apartment you are currently renting and residing in and now looking to purchase having received a Notice of Termination from your landlord, as the landlord is putting the property on the market.
- be in the Republic of Ireland
- be your Principal Private Residence
- be within the local authority property price ceiling for the property type
How much funding can the FHS provide?
- the FHS can fund up to 30% of the property purchase price or build cost (for self-builds)
- this amount is reduced to 20% if you are availing of the Help to Buy Scheme (HTB). Details of HTB 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
- the minimum equity share is 2.5% of the property purchase price or build cost (for self-builds), or €10,000, whichever is higher.
Are there any other third-party fees and charges that may apply?
Yes, there could be other costs (not levied by the FHS) that you might incur. These may include:
- Financial Advice fees
- Legal fees
- Settlement of Taxes
- Estate Agent fees
- Valuation fees
Please see our FAQ ‘Are there other fees and costs associated with the FHS?' in the FAQ section of the website for further information.
Example one: Buying a house
| David | Never owned a property (first-time buyer) |
| Nicola | Never owned a property (first-time buyer) |
| Joint salary | €87,500 |
| Property purchase price | €450,000 |
| Maximum borrowing (4 x salary) | €350,000 |
| Help to Buy (HTB) | €20,000 |
| Deposit (HTB + Savings) | €45,000 |
| Shortfall that could be met with the FHS | €55,000 |
Example two: Buying an apartment
| Emma | Never owned a property (first-time buyer) |
| Shaun | Never owned a property (first-time buyer) |
| Joint salary | €87,500 |
| Property purchase price | €450,000 |
| Maximum borrowing (4 x salary) | €350,000 |
| Deposit | €45,000 |
| Shortfall that could be met with the FHS | €55,000 |
Example three: Buying a house following a divorce
| Sara | Divorced, with no legal interest in her former family home |
| Salary | €43,750 |
| Property purchase price | €290,000 |
| Maximum borrowing (4 x Salary) | €175,000 |
| Deposit (10%) | €29,000 |
| Shortfall that could be met with the FHS | €86,000 |
Example four: Building your own home
| Jim | Never owned a property (first-time buyer) |
| Site | Owns a site valued at more than 10% of the build cost |
| Salary | €75,000 |
| Build cost | €400,000 |
| Maximum borrowing (4 x salary) | €300,000 |
| Deposit | Site value which is more than 10% of the build cost |
| Shortfall that could be met with the FHS | €100,000 |
Are you eligible?
WARNING: We strongly recommend that you seek advice from an independent financial adviser and legal adviser if applying for a First Home Scheme product.
WARNING: Property prices can go up and down. As the equity facility is linked to the value of your home, any change in property prices will affect any partial or final redemption amounts. If property prices increase/decrease over time, the percentage equity you have to redeem will remain the same but the € amount will increase/decrease. See examples in the case of a price increase below:
Example 1: Home Purchase (private development)
Customer purchases a property for €350,000, availing of €35,000 from the First Home Scheme (FHS) which means the FHS has a 10% FHS Equity Share in your home.
Sometime in the future you decide to buy out the FHS Equity Share. The home is now valued at €400,000. As the FHS Equity Share is unchanged at 10%, you will now need €40,000 plus any accrued service charges payable, to redeem the FHS Equity Share in the home
Example 2: Self-build (own site)
Customer owns a site valued at €100,000 and builds a house on that site at a cost of €300,000.Customer avails of €30,000 from the First Home Scheme (FHS) which means the FHS has a 10% FHS Equity Share in your house built on the site.
Sometime in the future you decide to buy out the FHS Equity Share. The property, including both house and original site is now valued at €500,000.
At the time of build, the site value represented 25% of the total value of the home (i.e.€100,000) and this 25% will now be discounted from the current value before calculating the FHS equity amount to be redeemed (€500,000 less current site value of €125,000, equals €375,000). As the FHS Equity Share is unchanged at 10%, you will now need €37,500 (10% of €375,000) plus any accrued service charges payable, to redeem the FHS Equity Share in the home.
WARNING: The First Home Scheme is not regulated by the Central Bank of Ireland and the equity product is not governed by the Central Bank and its statutory codes of conduct and/or other regulations to include the Consumer Protection Code. However, this does not affect your rights under consumer law.