Help to Buy and First Home Scheme

HELP TO BUY SCHEME

The Help to Buy scheme is much simpler than it seems. It is a gift to you by the State of the Income-tax and DIRT tax that you have paid over the previous four years. It is a gift, you don’t have to do anything other than qualify (and that means most new home buyers) and live in the home for five years. Too easy I hear you say, not really.

Rules of the Help to Buy scheme;

1      It only applies to new homes (or one-off built new homes).

2      You must be a first-time buyer.

3       You must borrow over 70% of the price of the new home.

4       You only get back Income tax and or DIRT tax

5        The maximum amount is €30,000.00 or the total tax you have paid in the past 4 years.

6        The Banks will count the amount of the Help to Buy as part of your deposit/contribution.

7        If you sell the home within 5 years there is a clawback based on how soon you sold, the later you sell the less you payback.

 FIRST HOME SCHEME

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.

.

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