JULY 2026 · 9 MIN READ · IRELAND
Ireland's First Home Scheme Explained — Eligibility, Costs, Timeline and Who Should Use It
The First Home Scheme lets the government bridge the gap between what you can borrow and what a new-build home costs — in exchange for an equity stake in your property. Here is everything you need to know before applying, including the eligibility rules that are most commonly misunderstood.
Information verified against firsthomescheme.ie and citizensinformation.ie · July 2026. Property price ceilings are reviewed every 6 months — check firsthomescheme.ie for current figures.
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 (minimum 10%)
→Your maximum mortgage (up to 4× gross income for first-time buyers under Central Bank rules)
→The actual purchase price of the new-build home
In exchange, the FHS takes an equity stake equal to the percentage they contributed. You do not repay this monthly — it is repaid when you sell, remortgage, or choose to buy out the government's share.
The scheme applies to new-build homes only. It does not cover second-hand properties.
EXAMPLE — €420,000 NEW BUILD, SALARY €90,000
Home price: €420,000
Your deposit (10%): €42,000
Max mortgage (4× €90k): €360,000
Gap: €420,000 − €42,000 − €360,000 = €18,000 (4.3%)
FHS covers €18,000 → government owns 4.3% of the property
Eligibility — who qualifies?
First-time buyer
You must not have previously purchased or built a residential property anywhere in Ireland or abroad. This includes properties you may have inherited.
New build only
The property must be a newly built home or a self-build. Second-hand properties do not qualify.
Minimum 10% deposit
You must have at least 10% of the purchase price as a deposit. This can include a Help to Buy rebate.
Participating lender
Your mortgage must be with AIB, EBS, Haven Mortgages, Bank of Ireland, Permanent TSB, or Avant Money. Other lenders do not participate.
Maximum borrowing
You must borrow the maximum available to you from your lender. The FHS is designed to top up your maximum — not to reduce the amount you borrow.
Property price ceiling
The property must be at or below the price ceiling for its county. Ceilings vary by location and are reviewed every 6 months. Check firsthomescheme.ie for current figures.
FHS maximum
Up to 30% of the purchase price without Help to Buy. Maximum 20% if using Help to Buy alongside FHS.
No income limit
A common misconception is that the First Home Scheme has income caps. It does not. There is no upper or lower income limit. Eligibility is based on your borrowing capacity — not your salary level.
Property price ceilings by area
The property you buy must be at or below the ceiling for its county. Ceilings are reviewed every 6 months and vary between houses and apartments (apartments have higher ceilings in some areas to reflect construction costs). The figures below are indicative — always check firsthomescheme.ie for current ceilings before applying.
Dublin (city and county)
€500,000
Higher apartment ceilings in some areas
Cork, Galway, Kildare, Meath, Wicklow, Louth
Up to €450,000
Varies by local authority
Other counties
Lower ceilings
Check firsthomescheme.ie for your specific county
Note: Ceilings are updated regularly. The figures above may not reflect the current limits — always verify at firsthomescheme.ie before making any decisions.
The full timeline — application to drawdown
1
Apply for eligibility certificate
5–10 business days
Apply at firsthomescheme.ie. You will need proof of income, mortgage approval in principle (AIP) from a participating lender, and confirmation you are a first-time buyer. The eligibility certificate is valid for 12 months.
2
Find a property and get full mortgage approval
Variable — weeks to months
You need formal mortgage approval (not just AIP) before proceeding with FHS. 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 — the legal agreement confirming their equity stake and terms.
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. Read everything carefully — this is a legal commitment to share equity in your home.
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 developer in one transaction on closing day.
The service charge — what nobody explains clearly
The FHS equity is charge-free for the first 5 years. After that a service charge applies on the outstanding equity amount:
Years 1–50%No charge
Years 6–151.75% per yearOf the outstanding FHS equity value
Year 16+2.15% per yearOf the outstanding FHS equity value
SERVICE CHARGE EXAMPLE — YEAR 6
Property value at purchase: €300,000
FHS equity share: 10%
FHS equity value: €30,000
Year 6 service charge: €30,000 × 1.75% = €525/year
If property value has risen to €360,000 by year 6, the charge is €36,000 × 1.75% = €630/year
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.
Key risk to understand
The service charge is calculated on the equity value — which is tied to the current property value, not the original purchase price. If your home rises in value, the FHS equity rises with it, and your service charge increases accordingly. This is the compounding cost that is most often overlooked.
Pros of the First Home Scheme
✓
Bridges the affordability gap
Lets you buy a home you could not otherwise afford given borrowing constraints and deposit requirements — particularly useful in Dublin and other high-cost areas.
✓
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 than if you had borrowed the full amount.
✓
Charge-free for 5 years
No service charge for the first 5 years, giving you time to settle in and potentially pay down your mortgage before costs kick in.
✓
Can be combined with Help to Buy
Help to Buy gives you up to €30,000 back in tax toward your deposit. FHS then covers any remaining gap. Using both together maximises purchasing power, though the FHS maximum drops to 20% when HTB is used.
✓
No forced repayment date
You can hold the FHS equity long-term. There is no deadline by which you must buy out the government's share.
✓
Partial buyouts allowed
You can buy out the FHS equity in stages — minimum 5% of the property value at a time — rather than needing to clear the full amount at once.
Cons of the First Home Scheme
✗
The government owns part of your home
This is the core trade-off. If your home rises in value, the government's share rises proportionally. You do not benefit from 100% of your property's appreciation.
✗
Service charge from year 6
At 1.75% of the equity value, costs start accumulating in year 6. If property prices have risen, the equity value is higher and so is the charge.
✗
New builds only
You cannot use FHS on a second-hand property, which significantly limits your options in areas where new supply is low.
✗
Repayment at market value when selling
When you sell or remortgage, the FHS stake is repaid at the current market value — not the original cash amount. In a rising market this can be substantially more than was originally contributed.
✗
Must borrow your maximum
The FHS requires you to take the maximum mortgage available to you. You cannot use FHS to borrow less than your maximum.
✗
New builds carry development risk
Buying off-plan or from a new development carries risks — delays, developer insolvency, or the finished property differing from what was shown. This is unrelated to FHS but is a factor in new-build purchases.
When should you use the First Home Scheme?
Use FHS if:
→You have a specific affordability gap that FHS closes — you are close but not quite there
→You plan to buy out the FHS equity within 5 years, before service charges accumulate
→You are using it alongside Help to Buy to maximise both schemes on a new build
→The alternative is renting for another 2–3 years — FHS gets you into the market sooner and stops rent going out the door
→You are buying in an area where property values are likely to rise — locking in at today's price via FHS can be better than waiting
Think carefully before using FHS if:
→You need the full 30% — a large equity stake means a large future repayment, especially if values rise
→You have no clear plan to buy out the stake — service charges from year 6 add up
→You could save the shortfall in 12–18 months — it may not be worth giving away equity
→Your income is likely to rise significantly — in 1–2 years you may be able to borrow more without needing FHS at all
→You want to buy a second-hand property — FHS cannot help you there
Using FHS with Help to Buy
These two schemes are designed to work together. Help to Buy gives eligible first-time buyers a tax refund of up to €30,000 (10% of the purchase price up to a maximum of €30,000) which goes toward the deposit. FHS then covers any remaining gap.
When used together, the FHS maximum drops from 30% to 20% of the purchase price.
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 (4× €90k): €360,000
Gap to cover: €400,000 − €40,000 − €360,000 = €0
In this case FHS may not be needed — the deposit and mortgage cover the full price
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Find your subscription leaks →Frequently asked questions
Is there an income limit for the First Home Scheme?
No. The First Home Scheme has no income limit. Eligibility is based on your borrowing capacity, not your salary. You must show that you are borrowing the maximum available to you from a participating lender.
What is the First Home Scheme eligibility criteria?
You must be a first-time buyer, purchasing a new-build property with at least a 10% deposit, using a mortgage from a participating lender (AIB, EBS, Haven, BOI, PTSB, or Avant Money), and the property must be within the price ceiling for its county. There is no income limit.
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 per transaction). The buyout price is based on the current market value of the property — not the original amount contributed.
What happens when I sell a property with an FHS equity stake?
When you sell, the FHS equity is repaid automatically from the sale proceeds at the current market value. The government's percentage applies to whatever the property is worth at the time of sale. 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 sits alongside your mortgage as a separate equity product.
Can I use FHS if I am self-employed?
Yes. Self-employed applicants can use FHS. You will typically need 2 years of certified accounts and a current tax clearance certificate. Mortgage approval for self-employed applicants can take longer, so build extra time into your timeline.
Is the First Home Scheme the same as the Local Authority Home Loan?
No. The Local Authority Home Loan (LAHL) is a below-market-rate mortgage for people who cannot get a mortgage from a commercial bank. FHS is a shared equity top-up that works alongside a standard commercial mortgage. They are entirely different products.
Written by the CashLeak team · cashleak.app · Verified against firsthomescheme.ie and citizensinformation.ie, July 2026. Property price ceilings are reviewed every 6 months — check firsthomescheme.ie for current figures. This article is for general guidance only — speak to a mortgage broker or financial advisor before making decisions about the First Home Scheme.