First Home Scheme

What is it and how does the FIRST HOME SCHEME  work?

The FIRST HOME SCHEME helps the buyer afford a new home that they would not ordinarily afford. The FIRST HOME SCHEME is really the State buying a %  (up to 30% of the purchase price) of your new home and not charging you any interest for the first 5 years after your buy. Then if you cannot afford to buy out the State’s share in your home, you pay a very low rate of interest on the value of the Share (only 1.75% initially). This is a very helpful scheme as essentially the State is giving you back approximately the amount of VAT on the original price interest-free for the first 5 years. Then you pay interest @1.75% for years 6-15 and 2.15% years 16-30 and 2.85% from year 30  onwards. You can pay it off anytime.

HELP TO BUY

It does not stop you also getting the  Help to Buy.

WHEN to apply

You should apply for the First Home Scheme and the Help to Buy at the same time as you apply for your loan.

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WHO IS ELIGIBLE?

• Anyone who has not previously purchased or built a dwelling in Ireland and, does not own or is  entitled to any dwelling in Ireland

A number of exemptions have been introduced, which mean applicants may also be eligible despite previously purchasing or building a property in Ireland if:

• their  relationship with a spouse or civil partner has ended and they  not retain a beneficial interest in the previous property, or
• they have sold  that property as part of a personal insolvency or bankruptcy arrangement
  

Applicants must also:

• have Mortgage Approval
• borrow the maximum mortgage amount available from one of the participating lenders (up to 3.5 times income)
• have a minimum deposit of 10% of the  purchase price