What are the government schemes available to first-time buyers?
Learn how the Help to Buy Scheme, First Home Scheme, and Local Authority Affordable Purchase Scheme can support you in stepping onto the property ladder and turning your dream of homeownership into reality.
Help To Buy Scheme
The Help to Buy scheme is a tax rebate provided by the Irish government which helps first-time buyers overcome the hurdle of getting their deposit together.
The scheme will help you with the deposit you need to purchase a newly built house or apartment worth up to €500,000. The funds will go towards your deposit, up to a maximum of €30,000 (or 10% of the property price, whichever is less).
How It Works And Why It Can Benefit You
Did you know you can get up to €30,000 towards your deposit using the Help to Buy Scheme?
It's a tax rebate provided by the Irish government worth up to €30,000 (or 10% of the property price, whichever is less).
This is an incentive for first-time buyers and will help you with the deposit you need to purchase a new build worth up to €500,000.
The funds will go towards your deposit, up to maximum of €30,000.
Find out more at the Revenue.ie
First Home Scheme
The First Home Scheme is a shared equity scheme that helps first-time buyers bridge the gap between their deposit, their approved maximum mortgage and the purchase price of the property they would like to buy.
If you qualify for the scheme, the Government and participating lenders will provide up to 30% of the market value of your new home, in return for the same percentage share in equity in the property. This is reduced to 20% if you are also availing of the Help to Buy Scheme.
How It Works And Why It Can Benefit You
Find out how the first home scheme can help you with up to 30% of the market value of your new home.
Do you qualify?
You must be a first time buyer or fresh start applicant who is over 18 and have the right to live in Ireland.
You are a first time buyer if:
You have not previously bought or built a property to live in.
You do not own or have an interest in any property in the Republic of Ireland or abroad.
You are a fresh start applicant if you previously owned a home, but you no longer have a financial interest in it because:
You are now divorced, separated or your relationship has ended.
You have gone through personal insolvency or bankruptcy.
How much does it cost?
There is no charge for the first five years under the FHS, meaning the first service charge rate begins at the start of year six. Buyers have the option to buy back the stake at any time, but it is not a requirement.
The service charge rates are fixed for the life of the equity facility, and begin at 1.75% for years 6-15.
What are the price caps?
The property you buy must be a newly built home in a private development. The scheme does not cover second-hand homes or self build homes. Your new home must have a market value less than the price limit for your local authority area.
These limits are different depending on where you buy and what type of property you purchase. The limits are linked to the median price for first-time-buyers in each area. They will be reviewed regularly and changed if needed.
Local Authority Affordable Purchase Scheme
The Local Authority Affordable Purchase Scheme helps eligible buyers purchase a newly built home at a reduced price.
If you qualify for the scheme, the local authority will provide between 5% to 40% of the cost of your new home, in return for the same percentage of equity share in the property. You must repay the local authority’s stake after 40 years or if you decide to sell your home, but you can always pay it back any time before this.
How Do I Apply?
The Local Authority will advertise the development on their website. You need to gather documents like a letter confirming you qualify for a mortgage, bank statements, proof of salary and proof that you will have the deposit. Once you have all the documents, you simply upload them as part of your application.
Do You Qualify?
The Local Authority Affordable Purchase Scheme is designed for first-time buyers and to be eligible there are a number of requirements:
Must be over 18 years of age
You are a First-Time Buyer or qualify under the Fresh Start principle
Your financial income must not be more than 95% of the price of the home
Have a minimum deposit of 10% of the purchase price
Have rights to reside indefinitely in the Republic of Ireland
The affordable home will be your main residence.
How Do I Calculate My Income Limit?
As a rule of thumb, the income limit is 85.5% of the open market value of the home, divided by four.
For example, A and B wants to buy a home for €400,000.
85.5% of €400,000 is €342,000.
€342,000 divided by four is €85,500.
This means A and B’s income limit is €85,500.
Exceptions may apply, so be sure to check out your local authority website to see if you are eligible for a higher income limit.