The First Home Scheme (FHS) is a government initiative that helps first-time buyers and other eligible home buyers with up to 30% of the market value of a newly built home in a private development anywhere in Ireland.
The first home scheme assists first-time and eligible homeowners with 0% interest loans to help purchase a property on a new development. The loan is underwritten by banks who are participating in the scheme.
Invariably government initiatives have an extensive list of qualifying criteria, but the eligibility criteria for the first home scheme are relatively simple. To qualify for the first home scheme, you must be 18 years old and either a first-time buyer or a “fresh-start” applicant.
The scheme categorises first-time buyers as individuals or couples who have yet to buy or build a property to live in. They will also need to not have any current or previous ownership or interest in any other property in Ireland or abroad.
As with any initiative, viability comes down to personal circumstances. But overall, the scheme has carried out its objective: to help more Irish citizens own property instead of renting.
With rental prices consistently growing YoY, this scheme is worth reviewing if you plan to purchase.
Price caps are currently in force on a geographical basis, and you will need to check the scheme specifics of where you plan to buy.
Currently, the highest cap is on houses and apartments in Dublin and Cork, now capped at €500,000.Lower caps are in force in areas like Longford, Sligo and Donegal. The lowest geographical cap is €325,000.That means that every new build in Ireland valued at this figure or lower is eligible for the scheme
Unfortunately, in most cases, if you purchased a home outside of Ireland, you would not qualify for Ireland's first home scheme.
The scheme only applies to properties bought or built as first-time buyers' homes.
Yes, joint applications are accepted with the first home scheme. The only caveat is that both applicants must meet the criteria.
No, there is no interest or charges on the first home scheme. However, in year 6, a service charge will be applied. For more information on what the service charges are, please see below.
The service charge is a premium placed on the service for using it. Although it only applies in year 6, it's something that you need to be aware of and consider when calculating your benefit.
There will be no service charge for the first five years you own the property.A service charge will be applied to the equity share from the start of year six onwards at the following rates per annum:
Years of ownership
% Equity Share Charge
6 - 15 -1.75%
15 - 29 - 2.15%
30+ - 2.85%
These rates are fixed for the life of the equity facility.
There are several ways to pay the service charge once it is due; you can opt to make a
If you cannot pay the service charge, then options are available. The first option is to apply for a reduced payment; the second option is a deferred payment.
If you decide to defer payment on year 6 when it comes due, it's important to note that the balance will accrue in the background. The balance would have to be paid in full
You can repay the government's equity at any point but are not obligated to. So you could live on the property for the rest of your life without repaying the government's stake.
Some eventualities would require the government to be repaid, such as selling the home or if the applicant died.
No, the first home scheme requires some eligibility criteria, but income is not one of them.
The property types eligible for the first home scheme are newly built homes in a private development.
Unfortunately, the scheme does not cover second-hand homes or self-builds.
There are a fair few schemes available to first-time buyers, but the most prominent are the first home scheme and the Help-To-Buy Scheme.
Your mortgage must be with a lender that is participating in the scheme. Participating lenders include the Bank of Ireland, Permanent TSB and Allied Irish Bank, AIB, Haven Mortgages and EBS.
You must borrow the maximum amount from one of these lenders. Under Central Bank rules, the limit for mortgage borrowing for first-time buyers is four times your gross annual income. If you are a non-first-time home buyer, the limit is 3.5 times your gross annual income.
If you get a Macro-Prudential Exception (MPE) with a participating lender, you will not qualify for the FHS. An MPE is when your lender lets you borrow above the Central Bank limits. Lenders can do this for a certain percentage of the mortgages they provide.
You must have a deposit of at least 10% of the property’s purchase price. There is an eligibility calculator on the First Home Scheme website to help you see if you qualify.
You apply online for the First Home Scheme. If you cannot apply online or need help filling out the form, contact the FHS, and they will help with this.
There are several steps to the FHS process:
Apply online: you must give personal details and information about the property you want to buy and your solicitor's details.
You also need to provide:
At Axis, purchasing your first home can be a huge undertaking. That's why we're committed to helping make the process as simple as possible. If you are considering using the first home scheme to purchase a property, then our experienced team can help.
Whether you're looking for a one-bedroom flat or a large family residence, our developments have everything you need at a price point that suits all budgets. Before looking at any other developer, book a site visit today and see what your life could be like if you lived on an axis development - Axis Living, making life better.
Axis Living Limited,
Willow House, Millennium Park, Osberstown, Naas, Co. Kildare, W91 C6KT
Email: info@axis.construction
