In today’s housing market, buying your first home can feel like an impossible task. Between saving for a deposit, meeting strict mortgage rules, and rising property prices, many first-time buyers in Ireland are finding it increasingly difficult to get on the property ladder.
That’s where government home support plays a vital role.
Schemes like the First Home Scheme Ireland are designed to give eligible buyers the boost they need to secure a new-build property. If you’re struggling with affordability, this shared equity scheme for first-time buyers could be the opportunity you’ve been looking for.
In this guide, we explain what the First Home Scheme is, how it works, who qualifies, and how you can apply. Whether you’re actively house-hunting or just starting your research, understanding how first-time buyer government support in Ireland works is essential.
What Is Government Home Support?
Government home support refers to state-backed programmes that assist individuals and families in purchasing a home. These initiatives aim to reduce the financial barriers to homeownership, particularly for those who can afford monthly repayments but struggle with deposits or mortgage shortfalls.
In Ireland, key support schemes include:
- The Help to Buy Scheme, which offers a tax rebate to help with deposits
- The First Home Scheme, a shared equity programme for new-build purchases
- Local authority housing schemes, including Rebuilding Ireland Home Loans
Each of these supports targets different needs, but all are aimed at helping first-time buyers get on the property ladder with less financial strain.
Introduction to the First Home Scheme
The First Home Scheme Ireland was introduced in 2022 as a way to address affordability issues faced by first-time buyers. At its core, it’s a shared equity scheme for first-time buyers. That means the government provides funding in return for a percentage stake in your home.
The equity support can be used to top up your mortgage and deposit, allowing you to purchase a newly built home that would otherwise be out of reach.
There are no monthly repayments or interest on this government contribution for the first five years. Repayment is only required when you sell the property, refinance, or choose to buy back the government’s equity stake.
How the First Home Scheme Works
Understanding how this form of government home support operates is essential before applying. Here’s a simplified breakdown:
Step 1: Identify Your Shortfall
You’ve saved a deposit and secured a mortgage, but the total falls short of the property’s purchase price. The scheme can step in to cover this shortfall.
Step 2: Government Provides Equity
The government (and in some cases, participating banks) can contribute up to 30 percent of the property price. If you are also using the Help to Buy scheme, the First Home Scheme contribution is capped at 20 percent.
Step 3: You Become a Shared Owner
In exchange for this financial help, the government takes a stake in your property based on the value of their contribution. For example, if your home costs €300,000 and you receive €60,000 from the scheme, the government holds a 20 percent equity share.
Step 4: Pay Nothing for Five Years
For the first five years, there are no repayments or service charges. From year six onwards, a low annual service fee applies until the equity is repaid.
Step 5: Repay When Ready
You can choose to repay part or all of the equity at any time, based on the current market value of your home. The equity must be repaid when you sell, transfer, or remortgage the property.
Who Is Eligible for the First Home Scheme?
The scheme is specifically designed to support first-time buyers who meet the following criteria:
- You must be a first-time buyer, or qualify under the Fresh Start principle (e.g., following separation or insolvency)
- The property must be a new-build home in a private development
- You must intend to live in the property as your main residence
- Your mortgage must cover at least 70 percent of the property price
- Your total funds (mortgage plus deposit) are insufficient to purchase the home
Additionally, the purchase price of the property must fall within regional price caps. These vary based on location and property type. For example:
- Greater Dublin Area: up to €475,000 for houses and €500,000 for apartments
- Other counties: typically between €275,000 and €425,000
To apply, you must also have mortgage approval from a participating lender.
Benefits of Government Home Support for Buyers
The First Home Scheme offers several key advantages:
- Increased affordability: Allows you to buy a home you couldn’t otherwise afford
- No interest or repayments for five years: Reduces early financial pressure
- Flexible repayment: Buy back the equity when your finances improve
- Encourages new housing supply: Supports the development of more new homes
- Works with the Help to Buy scheme: Can be used alongside other supports
This form of first-time buyer government support in Ireland provides a real alternative to long-term renting or waiting years to save a larger deposit.
Things to Consider Before Applying
Although the First Home Scheme is helpful, there are a few important points to be aware of:
- The government owns a percentage of your property until the equity is fully repaid
- When you repay, the amount is based on your home’s market value, not the original contribution
- After year five, a service charge will apply if you haven’t repaid the equity
- Legal and valuation costs may apply when buying back equity
- You’ll need to inform the scheme if you plan to sell, remortgage or transfer the property
Before applying, speak to your mortgage advisor or solicitor to ensure you fully understand the implications of shared equity.
How to Apply for the First Home Scheme
The application process is straightforward and mostly online. Here’s how to get started:
- Check Your Eligibility
Review the criteria and regional price caps to confirm that your intended purchase qualifies. - Get Mortgage Approval in Principle
Secure mortgage approval from a participating bank or lender. - Register on the First Home Scheme Portal
Create an account and start your application on the official website. - Submit Required Documents
These include proof of income, deposit, mortgage approval, and property details. - Review and Sign the Legal Pack
This includes the shared equity agreement and any other relevant terms. - Finalise Your Home Purchase
Once approved, the government’s equity contribution is paid to your solicitor or the property developer at closing.
Is Government Home Support the Right Option for You?
If you’re a first-time buyer struggling with affordability but confident you can manage repayments, the First Home Scheme could be a practical solution. This form of government home support allows you to secure a home sooner without overextending your finances.
By using the scheme alongside other supports like Help to Buy, you can build a solid foundation for long-term homeownership in Ireland. The key is to plan wisely, understand the terms, and make sure the scheme aligns with your personal financial goals.
Start Your Home Buying Journey with Confidence
At FindQo.ie, we help first-time buyers across Ireland connect with trusted estate agents and explore new-build homes that qualify for the First Home Scheme. Whether you’re looking for step-by-step guidance or ready to buy, we make the process simpler and smarter.
Visit FindQo.ie today and discover how government home support can help you own your first home.
