First Home Scheme Ireland: Eligibility and Costs
The First Home Scheme helps eligible buyers bridge the gap between their deposit, mortgage and a qualifying home’s price through shared equity. It can fund up to 30%, or 20% with Help to Buy. Service charges start in year six, and buying out the equity share depends on property value.
The First Home Scheme can make a purchase possible when your deposit and approved mortgage do not cover an eligible home. It also creates a financial commitment that continues after you get the keys.
This guide separates the eligibility rules, property checks and later costs, with figures checked as of November 2026. If you have recently moved to Ireland, pay particular attention to the overseas ownership rules and the difference between scheme eligibility and mortgage approval.
In this guide
- How does the First Home Scheme work?
- Who can apply, including people new to Ireland?
- Which homes and building projects are included?
- What deposit and minimum funding are required?
- Can you combine FHS with Help to Buy?
- What service charges apply later?
- What happens when you buy back the equity share?
- How do you apply without mistaking a certificate for approval?
- Common questions
- Official sources
How does the First Home Scheme work?
The First Home Scheme, or FHS, is a shared-equity arrangement designed to bridge an eligible buyer’s funding gap. You combine your deposit, an approved mortgage and scheme funding to buy or build a qualifying home. In return, the scheme takes an equity share linked to the property’s value.
That last point is the most important difference from an ordinary cash grant. The amount needed to buy out the share can change as the home’s value changes. You should understand the equity agreement as well as the mortgage repayment before deciding that the purchase is affordable.
The scheme’s current eligibility page says the maximum share is 30% of the purchase price or build cost when you are not using Help to Buy. If you are using Help to Buy, the maximum FHS share is 20%. These are ceilings, not an automatic entitlement to that amount.
Start by identifying the actual gap in your finances. A property being within a price ceiling does not establish that you can obtain the mortgage, qualify for the equity funding or pay all the other purchase costs. Ask the lender, scheme and solicitor to explain their respective decisions before you commit.
Who can apply, including people new to Ireland?
The FHS rules require applicants to be over 18, to have mortgage approval with a participating lender, and to be a first-time buyer or another eligible homebuyer. The rules also require the maximum available mortgage from a participating lender, up to 4 times income, and prohibit combining the scheme with a Macro Prudential Exception.
There is no upper or lower household income limit for FHS eligibility according to its current FAQ. That does not remove the lender’s affordability assessment. Your income still matters to the mortgage you can obtain and the amount you can responsibly spend on the home.
The first-time buyer definition looks beyond Ireland. It concerns previous purchase or construction for your occupation and ownership or beneficial interests in dwellings in Ireland or elsewhere. Moving country does not reset your housing history. Tell the scheme about an overseas home or interest rather than assuming it is irrelevant.
The definition also requires a right to reside in the State. A newcomer should ask what evidence is needed for their circumstances and discuss lender requirements separately. Some people following separation, divorce or insolvency may qualify through the scheme’s other eligible-homebuyer provisions, subject to the precise conditions and no retained interest where required.
Which homes and building projects are included?
The scheme’s rules describe a newly built house or apartment in a private development as a qualifying purchase route, subject to the other conditions. The home must be in the Republic of Ireland, be your principal private residence and fall within the applicable local authority property price ceiling.
There is also a tenant purchase route for the home you currently rent and occupy, where you have received a Notice of Termination because the landlord is selling. This is a particular route with specific conditions; it is not a general extension to every second-hand home on the market.
For self-builds, the house must be in the Republic of Ireland on a site you own or are buying. It must be your principal private residence and satisfy the applicable scheme ceiling. Ask about the self-build process specifically because valuation, site equity and build funding can differ from buying a completed home.
Price ceilings can vary by local authority and by house or apartment classification. The FHS says ceilings are regularly reviewed, so this guide does not reproduce a county table that could quickly become outdated. Check the current table for the exact property location and type before making an offer, and ask about a duplex if its classification is unclear.
What deposit and minimum funding are required?
The current FHS rules require a minimum deposit of 10% of the property cost. For a self-build, equity in the site can contribute towards the deposit requirement, which is a minimum of 10% of the build cost. Ask how the scheme and your lender will document that equity rather than treating an informal site estimate as approved funding.
The minimum FHS share is 2.5% of the purchase price or build cost, or €10,000, whichever is higher. This means the scheme is not intended to cover any arbitrarily small shortfall. Its calculator and assessment establish whether the gap fits within the rules.
Set aside money for the wider transaction too. Ask your solicitor and lender for their own estimates of legal, valuation, registration and other relevant costs. Do not assume every expense can be included in either the mortgage or the equity facility simply because it relates to buying the home.
If you are comparing a cheaper property with a more expensive scheme-supported property, compare the whole commitment. That includes the mortgage, the equity share, later service charges and your remaining savings after completion. Securing enough funding to complete a purchase and retaining a workable household budget are separate questions.
Can you combine FHS with Help to Buy?
The FHS rules allow Help to Buy alongside its new-build and self-build products, subject to separate eligibility. They say Help to Buy cannot be used with the Tenant Home Purchase product because that route concerns second-hand homes. Do not assume approval for either scheme establishes approval for the other.
Revenue’s current qualifying-property guidance says Help to Buy requires a qualifying mortgage of at least 70% of the purchase value or approved valuation. It also says that shared-equity finance under the First Home Scheme is not included when calculating that loan-to-value ratio. That distinction can change whether a funding plan qualifies.
Revenue lists a €500,000 maximum purchase value or approved self-build valuation for Help to Buy on the page checked for this guide. FHS has its own location-based ceilings. A property fitting within an FHS ceiling can therefore still fail a separate Help to Buy condition.
Before you make a final funding plan, have the lender and solicitor check the mortgage, deposit, any Help to Buy amount and the proposed FHS share together. This guide deliberately does not quote a Help to Buy refund maximum: use Revenue’s current claim guidance for the applicable amount and your own tax history. Our Revenue myAccount guide explains the separate online tax account.
What service charges apply later?
The FHS service-charge page says no fees or charges apply to the equity facility for the first five years. A service charge starts from year six. The published annual rates are shown below; the page says they are fixed for the life of the equity facility.
The service charge is separate from buying back the equity share. Paying the charge does not by itself mean you have redeemed the share. Make sure you understand both obligations when you look at the long-term cost of the arrangement.
| Period after drawdown | Annual service-charge rate |
|---|---|
| Years 0–5 | 0.00% |
| Years 6–15 | 1.75% |
| Years 16–29 | 2.15% |
| Year 30 onwards | 2.85% |
The scheme allows payment by monthly Direct Debit, a once-off payment against accrued charges, or deferral. Its page says deferral has no additional cost but the service charge continues to accrue and must be paid later. Deferring therefore does not cancel the bill.
Ask for the calculation relevant to your facility and any partial redemptions. The published method uses the original purchase price or build cost and the relevant equity percentage, rather than simply treating the charge as a mortgage interest rate on today’s market value. Keep a separate allowance for it in your future household budget.
What happens when you buy back the equity share?
The FHS warns that property prices can rise or fall and that this affects the money needed for partial or final redemption. The percentage share and the cash amount are different things. If the home becomes more valuable, buying out the same percentage can require more money.
The service-charge page gives an illustration: a property bought for €350,000 with €35,000 of FHS funding gives the scheme a 10% share. If that home is later valued at €400,000, redeeming that unchanged share requires €40,000 plus any accrued service charges. This is the scheme’s published example, not a prediction about your home.
Self-build calculations also account for the original site share under the scheme’s methodology. Do not apply a simple purchase example to a self-build without checking the relevant contract and valuation rules. Ask the scheme to explain the calculation for your own product.
Discuss your likely plans with an independent financial adviser and solicitor: remaining in the home, moving, changing the mortgage or redeeming part of the share. Ask which events require repayment or scheme consent under your contract. The useful question is not only whether you can buy now, but how the agreement works when your circumstances change.
How do you apply without mistaking a certificate for approval?
Begin with the official eligibility calculator and the participating lender. The FHS says you can apply with mortgage approval in principle. You will need to develop the application alongside the specific property or self-build details, rather than treating the calculator result as an unconditional offer.
The scheme expressly says an Eligibility Certificate does not guarantee funding. When an application is fully approved, supported by a Mortgage Letter of Offer from a participating lender, it issues a Customer Contract and reserves funds while that contract remains valid. Read the actual conditions and validity dates on your documents.
There is a particularly important distinction if you already have a mortgage offer for the property. The FHS FAQ says that where you already have a Letter of Offer, you will not qualify for that specific property because there is no funding shortfall. It says a different property may be eligible but requires a new mortgage application.
Before signing, ask your solicitor to explain the equity terms, service-charge choices, redemption calculation and any restrictions affecting future decisions. Keep copies of the mortgage paperwork, scheme contract, property ceiling check and financial plan. If an agent or developer gives you a verbal assurance, obtain confirmation from the body making the relevant approval decision.
Check the official FHS eligibility rules. Confirm your buyer history, mortgage position and property route before making a commitment.
Common questions
Is the First Home Scheme a grant?
It provides shared-equity funding in exchange for a share linked to the property’s value. Understand the redemption and service-charge terms before applying.
What is the maximum FHS contribution?
The current maximum is 30% without Help to Buy, or 20% if you use Help to Buy. Your approved amount depends on the scheme assessment.
Is there an income limit?
The FHS FAQ says there is no upper or lower household income limit. A participating lender must still assess and approve your mortgage.
Does owning a home abroad matter?
Yes. The first-time buyer definition includes homes in Ireland and elsewhere. Disclose your ownership history and ask about any other eligible-homebuyer route.
When do service charges begin?
The scheme says charges begin in year six, after the initial five years without fees or charges on the equity facility.
Does an Eligibility Certificate guarantee funding?
No. The scheme says it does not guarantee funding; a fully approved application and Customer Contract are later stages.
Can I combine FHS with a Local Authority Home Loan?
The FHS rules say it cannot be combined with the Local Authority Home Loan scheme. Check each alternative independently.
Official sources
- First Home Scheme: Rules and eligibility — checked 12 November 2026
- First Home Scheme: Service charges — checked 12 November 2026
- Revenue: Help to Buy qualifying property — checked 12 November 2026
- First Home Scheme: Frequently asked questions — checked 12 November 2026
General information only: This guide is not from the Government of Ireland. Eligibility and individual decisions depend on the administering body. Check the official rules before applying or making financial commitments.