Help to Buy and the First Home Scheme in Ireland Explained

Buying a first home in Ireland is expensive, and the State offers supports to help. Two of the best known are the Help to Buy incentive and the First Home Scheme. They work very differently, and they have eligibility rules and limits that have been adjusted over time. This guide explains the principles so you know what to ask your mortgage broker and where to confirm the current rules.

Figures change annually — verify before acting.

At time of writing, the schemes were available in a similar form to recent years, but limits, end dates and price ceilings change. Confirm everything on revenue.ie for Help to Buy and on firsthomescheme.ie and gov.ie for the First Home Scheme before making a financial decision.

Help to Buy in Brief

Help to Buy is a tax incentive run by Revenue. It allows first-time buyers of a newly built home, or a self-build, to claim a refund of income tax and Deposit Interest Retention Tax they have paid in previous years, up to a percentage of the purchase price or a fixed maximum, whichever is lower. The refund is paid towards the deposit, usually through the builder or solicitor.

Who can usually claim

• First-time buyers who will live in the home as their main residence.
• People who have paid enough income tax in the relevant years, since the refund is limited to tax actually paid.
• Buyers purchasing a new build or building their own home, not a second-hand home in most cases.

Why it matters for newcomers

The refund depends on your Irish tax record. If you have only just started working in Ireland, you may have paid relatively little tax, which limits what you can claim. Make sure your PPS number and employment are correctly registered so that your tax record is accurate.

The First Home Scheme in Brief

The First Home Scheme is a shared equity arrangement. The State and participating banks contribute a share of the price of a new home so that your mortgage and deposit requirements are lower. In return, the scheme takes an equity stake in the property. You can buy out that stake over time, and the cost of doing so depends on the property value at that point. There are no monthly repayments on the equity share for an initial period, but charges may apply later, so read the terms carefully.

Typical conditions

• You must be a first-time buyer, or fall within a limited exception for people returning after a relationship breakdown.
• The home must be a new build, or in some cases an eligible second-hand home or apartment, within price limits set by region.
• You must be approved for a mortgage and have a deposit of the required percentage.
• The home must be your main residence.

Using the Schemes Together

Buyers can often combine Help to Buy and the First Home Scheme, which can reduce the deposit and mortgage required. The details of how they interact are specific to your purchase, so a qualified mortgage adviser or solicitor should confirm it.

Before You Apply: A Checklist

1. Check your tax record on Revenue myAccount to estimate your Help to Buy entitlement.
2. Ask a lender for mortgage approval in principle.
3. Check the price ceiling for the area where you want to buy.
4. Confirm that the home and builder qualify for the schemes.
5. Compare costs and rent in the area using our renting guide to decide whether buying makes sense yet.
6. Use our salary calculator to understand your take-home pay before taking on repayments.

Things to Be Careful About

• Scheme rules and closing dates change, so do not assume a scheme will still be open when your purchase completes.
• Shared equity is not free money. Understand how the State's stake changes in value as the property does.
• Non-EU nationals still need the right to remain in the State and sufficient income stability to qualify for a mortgage.
• Always get independent legal and financial advice before signing.

Other Supports Worth Knowing About

Besides these two schemes, there are other supports that first-time buyers sometimes overlook. Local authority affordable purchase schemes offer new homes at below market price in some areas. The Local Authority Home Loan provides a government-backed mortgage for people who cannot get enough from a bank. Some employers and credit unions also offer mortgage products with different criteria. Each has its own eligibility rules and income limits, and some are aimed at people with specific circumstances.

It is also worth understanding the other costs of buying a home, which catch many first-time buyers by surprise: legal fees, stamp duty, valuation and survey costs, mortgage protection and home insurance. Build these into your savings target so that you are not caught short at closing.

Frequently Asked Questions