The journey to owning your first home can feel overwhelming, especially with rising property prices and stiff competition in the housing market. To help first-time buyers get onto the property ladder, the Irish government introduced the First Home Scheme—a significant initiative designed to bridge the gap between what buyers can afford and the price of a new home.

Here’s everything you need to know about the scheme, how it works, and whether it could help you secure your dream home.

What Is the First Home Scheme?

The First Home Scheme is a shared equity program launched by the Irish government in 2022. Its primary goal is to assist eligible first-time buyers in purchasing newly built homes. The scheme provides financial support by offering a shared equity loan to cover a portion of the property price, reducing the amount buyers need to borrow from a bank.

This initiative aims to make homeownership more accessible, particularly for those struggling to meet the cost of new properties due to rising prices.

How Does It Work?

The scheme offers financial support in the form of a shared equity loan. Here's a step-by-step overview of how it works:

You Buy a New Home: The scheme applies only to newly built properties in Ireland.
Shared Equity Loan: The government provides a loan covering up to 30% of the property’s price (or up to 20% if you’re also availing of the Help to Buy scheme).
No Repayments to Government for Five Years: You won’t need to make any repayments on the government loan for the first five years, giving you breathing room as a new homeowner. Of course, you will still need to make regular repayments on your primary mortgage to your lender during this time
Loan Equity Stake: The loan is a percentage of your home’s value, so its amount may increase or decrease depending on future property valuations.

Who Is Eligible?
To qualify for the First Home Scheme, you must meet specific criteria:

First-Time Buyer: You must be purchasing your first property.
New-Build Only: The scheme applies exclusively to newly built homes.
Price Limits: The property must fall within the regional price limits outlined in the scheme. For example, limits in Dublin are higher compared to other counties.

Benefits of the First Home Scheme

Reduces Financial Pressure: By covering a portion of the property cost, the scheme reduces the size of your mortgage, making monthly repayments more manageable.
No Immediate Repayments on Government Loan: With no repayments on the government loan required in the first five years, you have time to settle into homeownership without additional financial strain.
Accessible Across Ireland: Available in all counties, with regional price limits reflecting local market conditions
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Things to Consider
While the First Home Scheme offers significant benefits, it’s essential to understand the implications:

Shared Ownership: The government holds a stake in your home, which must be repaid if you sell or refinance the property.
Future Property Value: Since the loan is tied to your home’s value, repayment amounts may change if property prices increase.

How to Apply
Check Eligibility: Visit the official First Home Scheme website (www.firsthomescheme.ie)to confirm if you qualify.
Choose Your Property: Find a newly built home within the price limits for your region.
Apply for the Loan: Submit your application online, providing necessary details such as your income, property information, and mortgage approval.
Complete the Process: Work with your lender and solicitor to finalize the purchase, with the First Home Scheme loan integrated into the transaction.

Conclusion
The First Home Scheme is a game-changer for first-time buyers in Ireland, offering a practical solution to the affordability challenges in the housing market. By bridging the gap between your savings and the cost of a new home, it brings the dream of homeownership within reach.

If you're a first-time buyer considering this scheme, take the time to explore your options, understand the terms, and consult with experts to make an informed decision. 

This is for information purposes only. Consult the relevant government websites for up-to-date information on this scheme.