Getting on the property ladder in Ireland has never been easy. Rising house prices, limited supply, and strict lending criteria have made it even more difficult for first-time buyers. Thankfully, the Cost Buyer Scheme, more commonly known as the Help to Buy scheme for first-time buyers, offers a much-needed financial boost.
This article explains how the Cost Buyer Scheme works, who qualifies, how to apply, and why it could be the key to buying your first home in Ireland. Whether you’re just beginning to explore your options or already house hunting, understanding this scheme could save you thousands.
What Is the Cost Buyer Scheme?
The Cost Buyer Scheme refers to the Help to Buy initiative in Ireland, which was introduced by the government to help first-time buyers bridge the deposit gap when purchasing newly built homes.
The scheme offers a tax rebate worth up to 10 percent of the property’s value, capped at €30,000. This rebate is calculated based on the amount of income tax and DIRT (Deposit Interest Retention Tax) paid over the previous four tax years. It is not a loan and does not need to be repaid.
By easing the upfront deposit requirement, the Cost Buyer Scheme plays a vital role in making homeownership more achievable for young individuals and couples.
Why the Cost Buyer Scheme Matters for First-Time Buyers
One of the biggest hurdles for buyers in Ireland is saving a large enough deposit. The Cost Buyer Scheme offers practical Help to Buy for first-time buyers, enabling them to secure a mortgage without waiting years to build up savings.
For example:
- If you are purchasing a home worth €270,000, the typical deposit requirement is 10 percent or €27,000.
- Through the scheme, you could reclaim up to €27,000 from previous tax payments.
- This means you might not need to contribute any additional cash toward the deposit.
It is an effective way of reducing the time it takes to move from renting to owning.
Who Is Eligible for the Cost Buyer Scheme?
To access the benefits of the Cost Buyer Scheme, you must meet several conditions:
- You must be a first-time buyer.
- The property must be a new build and used as your primary residence.
- The purchase price must not exceed €500,000.
- You must take out a mortgage of at least 70 percent of the purchase price.
- You must be fully tax-compliant with Revenue and have paid sufficient tax in the previous four years.
If applying as a couple, both parties must meet the first-time buyer criteria. The property must be registered in your name or joint names, and the mortgage must be from a qualifying lender.
How the Cost Buyer Scheme Supports You When Buying Your First Home in Ireland
Understanding how to use the Cost Buyer Scheme can streamline your home-buying journey. Here’s how the process typically works:
Step 1: Create Your Revenue Account
Set up a MyAccount with Revenue (or ROS if you are self-employed). You will use this account to submit your Help to Buy application.
Step 2: Apply Through the HTB Portal
Within the Revenue portal, locate the Help to Buy section and provide the necessary details such as your income, tax paid, and intended property details.
Step 3: Receive Your HTB Application Number and Access Code
Once approved, you will be given an application number and access code. These are crucial for your builder or solicitor to claim the rebate on your behalf.
Step 4: Finalise the Purchase
When the property transaction is nearing completion, your builder or solicitor will input the claim into Revenue using your details. The approved rebate is then paid directly to them and offset against your deposit.
This is why the Help to Buy Ireland guide always advises that you apply before signing contracts or drawing down your mortgage.
What Types of Properties Qualify?
Only new residential properties are eligible under the Cost Buyer Scheme. This includes:
- Homes purchased directly from a developer
- Self-build homes
- Certain properties under approved housing bodies
Second-hand properties and investment purchases are excluded. This rule is in place to stimulate new construction and help first-time buyers access modern housing stock.
How Much Can You Really Save?
The amount you can claim under the scheme depends on your individual circumstances. Here’s a quick breakdown:
- Maximum rebate: €30,000
- Percentage of home value covered: Up to 10 percent
- Requirement: You must have paid an equivalent amount in income tax and DIRT in the past four years
For example, if you are purchasing a home for €250,000 and have paid €25,000 in tax over the past four years, you could receive the full 10 percent rebate. However, if you have paid less in tax, your rebate will be limited to the total amount of tax paid.
Important Deadlines and Considerations
The Help to Buy scheme was initially introduced in 2017 and has been extended several times. As of now, it is expected to remain in place until at least the end of 2025. However, government policies can change, so it is wise to act promptly.
Keep in mind:
- The rebate must be claimed before the property transaction is finalised.
- You must be tax-compliant throughout the process.
- The rebate goes directly to the builder or solicitor, not into your bank account.
Delays in applying or providing incorrect information can result in losing your eligibility, so careful planning is essential.
Is the Cost Buyer Scheme the Right Move for You?
The Cost Buyer Scheme has already helped thousands of individuals and families take the leap into homeownership. If you’re buying your first home in Ireland, it is a practical and valuable option to explore.
However, the scheme is not one-size-fits-all. Speak to a mortgage advisor or tax consultant if you are unsure about your eligibility. Also, ensure your builder is registered with Revenue and familiar with the process.
Being informed and prepared makes all the difference when navigating Ireland’s competitive housing market.
Conclusion: Take the First Step Towards Homeownership
The Cost Buyer Scheme is more than just a tax rebate. It is a gateway to buying your first home in Ireland with greater confidence and less financial stress. From easing deposit requirements to offering a clear application path, the scheme is a strong support system for first-time buyers.
If you’re planning to enter the property market, don’t miss out on this opportunity. Take control of your journey and explore your options today.
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