For many first-time buyers in Ireland, owning a home may feel like a distant dream. With rising property prices and limited supply, it can be hard to secure a mortgage that covers everything. The good news is that the Affordable Home Scheme has been developed to bridge this affordability gap and help more people get on the property ladder.
In this guide, we will explore how the scheme works, who qualifies, and how to apply. Whether you are starting your search or ready to make a move, understanding the Affordable Home Purchase Scheme in Ireland could be your key to homeownership.
What Is the Affordable Home Scheme?
The Affordable Home Scheme, also known as the Affordable Purchase Scheme, is a government-backed initiative that enables eligible buyers to purchase newly built homes at a reduced price. In exchange for the discount, the local authority retains a shared equity interest in the property.
This means that while you own and live in the home, a portion of the property’s value belongs to the local authority until you choose to repay that share. There is no interest or monthly repayment required on the equity portion. It only becomes payable when you sell the home, refinance, or voluntarily buy back the equity.
The scheme is part of a wider government effort to deliver sustainable support for home buyers in Ireland and ensure that homeownership becomes achievable for more households.
How the Affordable Home Scheme Works
Understanding the mechanics of the Affordable Home Scheme is key to making an informed decision. Here is a step-by-step breakdown:
Step 1: Property Discount
Homes available under this scheme are offered at a price below market value. The local authority typically provides a discount of up to 30 percent, though the exact amount depends on location and property value.
Step 2: Shared Equity Stake
The discount you receive becomes the local authority’s equity stake in your home. For example, if you receive a €60,000 discount on a €300,000 home, the authority retains a 20 percent share.
Step 3: No Monthly Repayments
There are no monthly repayments or interest on the equity portion. You repay the authority’s share only when you sell the property, remortgage, or choose to buy out the equity voluntarily.
Step 4: Repayment Based on Market Value
The repayment amount is based on the market value of the home at the time of repayment, not the original purchase price.
This arrangement allows first-time buyers to secure homes in areas they otherwise could not afford, without taking on excessive debt.
Who Is Eligible?
The Affordable Home Scheme is designed specifically for individuals and families who fall between social housing eligibility and open market affordability. You may qualify if:
- You are a first-time buyer, or meet the Fresh Start criteria (e.g. following separation or insolvency)
- You have no legal interest in any other residential property in Ireland or abroad
- You intend to use the property as your main residence
- Your household income falls below the local authority’s maximum income threshold (e.g. €66,000 in Dublin, €59,000 in other areas)
- You can provide a deposit of at least 10 percent of the home’s purchase price (Help to Buy can be used)
- You can secure a mortgage for at least 70 percent of the purchase price
Each local authority may have slightly different criteria, so it is important to check with your local council before applying.
Where Can You Apply?
The Affordable Home Scheme is currently available through local authorities across Ireland. Many of the homes offered are in newly developed estates, often built in partnership with approved housing bodies or private developers.
Some of the key locations where this scheme is available include:
- Dublin City
- South Dublin
- Fingal
- Cork City and County
- Galway
- Limerick
- Meath
- Kildare
New developments are regularly added, so it is worth keeping an eye on your local authority’s housing section or visiting platforms like FindQo.ie to stay up to date.
How to Apply for the Affordable Home Scheme
Applying for the Affordable Home Purchase Scheme in Ireland involves a few clear steps. Here is what you can expect:
Step 1: Check Availability
Visit your local authority’s website or consult platforms like FindQo.ie to find out which developments are open for applications.
Step 2: Review Requirements
Each development will list specific eligibility criteria, application deadlines, and income thresholds. Make sure you meet all requirements before proceeding.
Step 3: Prepare Documents
Gather key documents, including:
- Mortgage approval in principle
- Recent payslips and P60
- Proof of deposit
- Photo identification
- First-time buyer confirmation
Step 4: Submit Application
Complete the application form either online or via post, depending on the local authority. Ensure that all supporting documents are included.
Step 5: Await Decision
If your application is successful, you will be contacted to reserve a home and begin the legal and mortgage process. You will also sign a shared equity agreement outlining the local authority’s stake and your obligations.
Benefits of the Affordable Home Scheme
This first-time buyer home scheme offers several important benefits:
- Reduced purchase price, making homes more accessible
- No interest or monthly repayments on the equity share
- Ownership security, as the home is legally yours from day one
- Flexibility, allowing you to repay the equity share at a time that suits your financial situation
- Supportive process, with clear guidance and transparency through local councils
For buyers who fall just outside traditional affordability measures, this scheme can make all the difference.
Things to Consider Before Applying
Although the scheme is highly beneficial, there are a few important factors to keep in mind:
- The local authority will hold a legal stake in your home until you repay the equity share
- You must repay the equity if you sell, remortgage, or wish to buy out the local authority’s interest
- The repayment amount is calculated based on the property’s current value
- You may need local authority consent for certain changes to the property or for renting it out
- It is recommended to seek independent legal advice before entering a shared equity agreement
Understanding these details will help ensure there are no surprises later on.
Is the Affordable Home Scheme Right for You?
If you are a first-time buyer who earns too much for social housing but struggles with market prices, the Affordable Home Scheme could be the answer. It provides government support for home buyers in Ireland in a fair, flexible, and transparent way.
With homes available across many counties and more being developed each year, this could be your chance to stop renting and start building your future as a homeowner.
Start Your Homeownership Journey with FindQo.ie
At FindQo.ie, we connect first-time buyers with trusted estate agents and provide up-to-date listings for government housing schemes across Ireland. Whether you are exploring your options or ready to apply, we are here to help.
Visit FindQo.ie today to explore homes available under the Affordable Home Scheme and take your first step toward owning a home in Ireland.
