First Home Scheme in Ireland (2026)

Quick answer: The First Home Scheme is a government-backed shared equity programme for first-time buyers. The State takes an equity stake of up to 30% of the property's value (reduced to 20% if you also use the Help to Buy scheme) to bridge the gap between your deposit + mortgage and the purchase price. There are no monthly repayments on the equity — you buy the State out later when you can afford to.

What is the First Home Scheme?

The First Home Scheme (FHS) is a shared equity scheme operated jointly by the Irish Government and participating mortgage lenders on behalf of first-time buyers. It helps buyers who are mortgage-ready but have an affordability gap — where their deposit and maximum mortgage (under Central Bank rules) still falls short of the purchase price of a suitable home in their area.

The State (through the Housing Finance Agency) takes a proportional equity stake in your home. You pay no monthly interest or repayments on this equity — but the State owns a share of the property.

Who Qualifies?

Property criteria: - Most commonly a new build (including apartments and duplexes) or a self-build - Second-hand homes do not qualify under the main scheme, but a separate Tenant Home Purchase product lets certain renters whose landlord has served a notice of termination (e.g. an intention to sell) buy the second-hand home they are already renting - Property must be your principal private residence — no investment or rental properties - Price limits apply by local authority (see below)

Buyer criteria: - Applicants must be first-time buyers or qualifying "fresh start" applicants (e.g. people who are divorced or separated, or have been through insolvency or bankruptcy, and no longer own a home) - Must have a mortgage from a participating lender, and borrow your maximum mortgage capacity (typically up to 4× income under Central Bank rules) with at least a 10% deposit, without relying on a Central Bank lending exception - There is no formal income cap on the First Home Scheme — eligibility is shaped by your mortgage capacity and the regional price ceiling for your area

Regional Price Limits

The First Home Scheme operates within price ceilings that are set per local authority. Ceilings were uplifted in 17 local authorities on 1 January 2026. The full up-to-date table is maintained on firsthome.ie/price-ceilings — always consult the live list before making assumptions, as thresholds change.

As a general guide, ceilings for cities and high-demand areas are higher than rural areas, with Dublin local authorities typically at the upper end of the range.

These limits are reviewed and updated periodically — always check firsthome.ie for the current thresholds for your specific local authority.

How Much Can You Get?

The FHS fills the gap between: - Your deposit - Your maximum mortgage (under Central Bank rules)

...and the purchase price, up to a maximum of 30% of the property value — or 20% if you are also using the Help to Buy scheme.

Example: - Purchase price: €380,000 - Your deposit: €38,000 (10%) - Maximum mortgage (4× income of €72,000): €288,000 - Total (deposit + mortgage): €326,000 - Gap: €54,000 → FHS equity stake = €54,000 (14.2% of property value)

No Monthly Repayments

Unlike a second mortgage, the FHS equity stake has no monthly repayments. However, service charges accrue on the equity stake and are repaid when you sell, buy out the equity, or refinance.

Service charge scale (annual rate on the equity stake):

There is no fixed deadline to buy back the equity — but the longer you hold the equity, the more accrued service charges you'll owe. Service charges accrue on the outstanding equity amount (calculated daily and applied to your account in arrears); any service charges you choose to defer continue to build up against the equity balance until you redeem.

See firsthomescheme.ie — service charges for the full schedule.

Buying Out the Equity

You can reduce or repay the State's equity stake at any time through: - A lump sum redemption - When you sell the property (the State receives its proportional share of the proceeds) - When you remortgage to release equity

The redemption amount is based on the property's current market value at the time of redemption, not the original purchase price.

Combining FHS with Help to Buy

You can use both the First Home Scheme and the Help to Buy (HTB) tax refund on the same purchase: - HTB provides a cash refund of income tax and DIRT (up to €30,000) - FHS provides an equity top-up on top of your deposit and HTB - Note: if you use Help to Buy, the maximum FHS equity stake is 20% of the property value (rather than 30%)

Together, they can make new build homes significantly more affordable for first-time buyers.

Example with both schemes: - Purchase price: €380,000 - Help to Buy: €30,000 (max) - Personal savings deposit: €8,000 - Total deposit (savings + HTB): €38,000 (10%) - Maximum mortgage: €288,000 - Gap to fill: €54,000 → FHS equity stake

How to Apply

1. Check eligibility and get a FHS eligibility letter at firsthome.ie
2. Get Approval in Principle from a participating mortgage lender
3. Find a qualifying new build property
4. Your solicitor handles the FHS equity documentation as part of the conveyancing process

Key Points

• The main FHS is for new builds, though the separate Tenant Home Purchase product covers certain second-hand homes that renters buy after a notice of termination.
• No monthly repayments on the equity, but service charges accrue from year 6 (see stepped scale above).
• The State's share is based on current market value when you redeem, not the original price — if your home rises in value, the redemption amount rises too.
• There is no income cap — eligibility is determined by your mortgage capacity and the price ceiling for your local authority.
• The scheme has been extended to June 2027 (Gov.ie press release).

Common Questions

Q: Is the First Home Scheme the same as Help to Buy? No — they are separate schemes. Help to Buy is a Revenue tax refund on income tax and DIRT paid in the previous 4 years (cash into your deposit). The First Home Scheme is an equity share — the government takes a proportional ownership stake with no monthly repayments. They can be used together on the same purchase.

Q: Is there an income limit for the First Home Scheme? No — there is no formal income cap. Your eligibility is shaped by your Central Bank mortgage capacity (typically ≈4× income) and the price ceiling for the local authority area you're buying in.

Q: Do I have to buy back the government's share? Not on a fixed timeline. You can buy it back (redeem the equity) at any time by paying the current market-value equivalent. When you eventually sell, the State takes its proportional share of the sale proceeds. Service charges accrue from year 6 at 1.75%/year, stepping to 2.15% (years 16–29) and 2.85% (year 30+) if you haven't redeemed.

Q: What happens to the FHS equity if my home falls in value? The State's equity stake is proportional — if the property's value falls, the redemption amount also falls. You won't owe more than the proportional share of the property's current value.