Incentives for First Time Buyers and Eligible Home Buyers

The First Home Scheme (FHS) was recently introduced by the Government to assist first-time buyers who want to purchase a newly constructed property and are having difficulties in securing the full purchase price from their mortgage and deposit.

In addition to first Time Buyers, the scheme also allows for people who have separated or divorced, or those who have undergone insolvency proceedings and have no interest in their former home, to apply for support through the scheme under the “Fresh Start” principle.

This is a shared equity scheme, where the government and participating lenders pay up to 30% of the market value of your new home in return for a stake in the property.

This is reduced to 20% if a person is also availing of the Help to Buy Scheme (HTB), which is a further incentive scheme for first-time property buyers, helping first-time buyers with the deposit needed to buy or build a new house or apartment. Under the HTB scheme, the minimum a person can avail of is 2.5% of the property purchase price or €10,000.00, whichever is higher.

There is no charge for the first five years under the First Home Scheme, whereby the first service charge rate begins at the start of year six of your ownership. Buyers also have the option to buy back the stake at any time should they wish. These service charge rates are fixed for the life of the equity facility.

To be eligible under the scheme;

You must be a first-time buyer or “fresh start” applicant.

The property must be a new build.

The property must fall within certain price limits for specific counties.

Your mortgage must be with a participating lender.

If you are a first-time buyer or eligible home buyer and have any questions or require any assistance on the above, please contact Hannah Clinton at or on 01-8735012.

Contact McGrath Mullan

If you are thinking of engaging a lawyer, why not contact us today to see if we can assist? Any of our solicitors will be delighted to speak with you without obligation.

McGrath Mullan Solicitors

Phone: +353 (0) 1 873 5012

Fax: +353 (0) 1 873 5024