JUNE 2026 · 7 MIN READ · IRELAND
Ireland's First Home Scheme Explained — Pros, Cons, Timeline and Who Should Use It
The First Home Scheme lets the government top up your mortgage so you can afford a more expensive property than your deposit alone allows. But it comes with strings — the government owns a share of your home until you buy them out. Here is everything you need to know before signing up.
What is the First Home Scheme?
The First Home Scheme (FHS) is a shared equity scheme run by the Irish government and participating banks. It covers the gap between:
→Your deposit
→Your maximum mortgage (3.5× or 4× your income)
→The actual purchase price of the home
In exchange, the government (via the FHS) takes an equity stake in your property equal to the percentage they contributed. You do not pay this back monthly — it is repaid when you sell, remortgage, or choose to buy out the government's share.
The scheme covers new-build homes only. It does not apply to second-hand properties.
EXAMPLE
Home price: €420,000
Your deposit: €42,000 (10%)
Max mortgage: €315,000 (3.5× €90k salary)
Gap: €420,000 − €42,000 − €315,000 = €63,000 (15%)
FHS covers this €63,000 → government owns 15% of the property
Eligibility — who qualifies?
First-time buyer
You must not have previously purchased or built a property
New build only
Must be a newly built home or a self-build
Income limits
Single applicant: max €80,000 gross. Joint: max €120,000 combined
Mortgage required
You must have a mortgage from a participating lender (AIB, BOI, Haven, PTSB, Avant Money)
Property price caps
Varies by region — Dublin/Wicklow up to €500,000; other cities up to €400,000; rest of Ireland up to €350,000
FHS maximum
Up to 30% of the purchase price (or 20% if used alongside Help to Buy)
The full timeline — application to drawdown
1
Apply for eligibility certificate
5–10 business days
Apply at firsthomescheme.ie. You'll need proof of income, mortgage approval in principle, and confirmation you're a first-time buyer. FHS issues an eligibility cert valid for 12 months.
2
Find a property and get mortgage approval
Variable — weeks to months
You need formal mortgage approval (not just AIP) before proceeding. Your mortgage broker or bank handles this independently of FHS.
3
Submit property details to FHS
2–4 weeks
Once you have a signed booking deposit and formal mortgage offer, submit to FHS. They produce a Customer Contract — this is the legal agreement confirming their equity stake.
4
Legal pack to solicitor
3–4 business days after contract
FHS sends the legal pack to your solicitor. Your solicitor reviews it alongside the main conveyancing. Do not rush this step — read what you are signing.
5
Exchange contracts and close
Depends on conveyancing
FHS funds drawdown at the same time as your mortgage. The full purchase price is paid to the vendor in one transaction.
The service charge — what nobody explains clearly
The FHS equity is interest-free for the first 5 years. After that a service charge applies on the outstanding equity:
Years 1–50%No charge
Years 6–151.75% per yearOf the outstanding FHS equity
Year 16+2.15% per yearOf the outstanding FHS equity
If you do not pay the service charge, it is added to the equity you owe — meaning the government's share of your home grows over time.
Important to understand
The service charge is calculated on the equity percentage — not the original cash amount. If property values rise, the equity amount rises with it, and so does your service charge. This is the compounding risk that catches people out.
Pros of the First Home Scheme
✓
Bridges the affordability gap
Lets you buy a home you could not otherwise afford given income limits and deposit constraints — particularly relevant in Dublin.
✓
No monthly repayments on the equity
Unlike a top-up loan, you do not repay the FHS equity monthly. This keeps your mortgage repayments lower.
✓
Interest-free for 5 years
No service charge for the first 5 years, giving you time to settle in and build equity before costs kick in.
✓
Can be combined with Help to Buy
HTB gives you up to €30,000 back in tax, which goes toward your deposit. FHS then covers any remaining gap. Using both maximises what you can spend.
✓
No obligation to buy out immediately
You can hold the FHS equity long-term. There is no forced repayment date.
Cons of the First Home Scheme
✗
The government owns part of your home
This is the core trade-off. If your home doubles in value, the government's share doubles in value too. You are not benefiting from 100% of your property's appreciation.
✗
Service charge from year 6
At 1.75% on the equity amount, on a €63k FHS stake that's ~€1,100/year from year 6. If property prices have risen, it is more.
✗
New builds only
You cannot use FHS for a second-hand property, which limits your options significantly in many areas.
✗
Selling or remortgaging triggers repayment
When you sell or remortgage, the FHS stake must be repaid at the current market value — not the original amount. In a rising market this can be a large sum.
✗
Price caps may not stretch to where you want to buy
The €500k Dublin cap sounds high but cuts out many three-bed semis in commuter belt areas.
✗
Complexity at sale
Selling involves an additional party (the FHS). This adds time and legal complexity compared to a standard sale.
When should you use the First Home Scheme?
FHS makes sense in specific circumstances. Here is an honest breakdown:
Use FHS if:
→You are close to affording the property but have a specific gap (e.g. €30k–€80k short)
→You plan to buy out the FHS stake within 5 years (before service charges kick in)
→You are using it alongside Help to Buy to maximise both schemes
→The alternative is renting for 2–3 more years while saving — in which case FHS saves you rent and gets you into the market sooner
→You are buying in a high-demand area where values are likely to rise and you want to lock in now
Think carefully before using FHS if:
→You are using the maximum 30% — a large equity stake means a large future repayment
→You do not have a clear plan to buy out the stake within 5–10 years
→You are stretching to buy a property you would struggle to afford even with FHS
→You could save the gap in 12–18 months — it may not be worth the equity cost
→You are near the income limit and expect your income to rise significantly (you may be able to borrow more in 1–2 years without needing FHS)
Using FHS with Help to Buy
These two schemes are designed to work together. Help to Buy gives you a tax refund of up to €30,000 (10% of the purchase price, max €30k) which counts toward your deposit. FHS then covers the remaining gap.
COMBINED EXAMPLE — €400,000 NEW BUILD, JOINT INCOME €90,000
Help to Buy rebate: €30,000
Your own savings: €10,000
Total deposit: €40,000 (10%)
Max mortgage (3.5× €90k): €315,000
Gap to cover: €400,000 − €40,000 − €315,000 = €45,000
FHS covers: €45,000 (11.25% equity stake)
Saving for your first home?
One thing many first-time buyers miss: forgotten subscriptions quietly taking €50–€100/month that should be going toward your deposit. CashLeak scans your bank statement and finds every one. First scan is free.
Find your subscription leaks →Frequently asked questions
Can I buy out the FHS stake early?
Yes. You can buy out the government's equity stake at any time, in full or in part (minimum 5% of the property value). The buyout is calculated at the current market value of the property — so if values have risen, you pay more than the original cash amount contributed.
What happens if I want to sell before buying out the FHS stake?
When you sell, the FHS equity is repaid automatically from the sale proceeds at the current market value. If your home has increased in value, the government's percentage applies to the higher price. You keep the remainder after the mortgage and FHS are repaid.
Does the FHS affect my mortgage rate?
No. Your mortgage rate is set by your lender independently of the FHS. The FHS is a separate equity product that sits alongside your mortgage.
Can I use FHS if I am self-employed?
Yes, self-employed applicants can use FHS. You will need 2 years of accounts and tax clearance. Getting mortgage approval as a self-employed applicant takes longer, so factor in extra time.
Is the First Home Scheme the same as Local Authority Home Loan?
No. The Local Authority Home Loan (LAHL) is a mortgage product for people who cannot get a mortgage from a commercial bank. FHS is a top-up equity scheme that works alongside a standard commercial mortgage. They are different products targeting different situations.
Written by the CashLeak team · cashleak.app · Information correct as of June 2026. This article is for general guidance only — speak to a mortgage broker or financial advisor before making decisions about the First Home Scheme.