The First Home Scheme Explained: Eligibility, Costs and How to Apply
The First Home Scheme is an Irish shared-equity scheme that can cover part of the gap between your deposit and mortgage and the cost of an eligible home. In exchange, the scheme takes a percentage equity share in the property. It is not a conventional loan, but it is not free money: the amount needed to buy back the share normally tracks the home’s market value, and service charges begin in year six.
Eligible buyers can receive up to 30% of the purchase price or self-build cost, reduced to 20% when Help to Buy is used. The minimum support is 2.5% or €10,000, whichever is higher. The home must qualify, remain your principal private residence and fall within the relevant local-authority price ceiling.
At a Glance
Type of support: Shared equity, not a mortgage or grant
Maximum share: 30% of purchase price or eligible build cost
With Help to Buy: Maximum FHS share falls to 20%
Minimum share: 2.5% or €10,000, whichever is higher
Deposit: At least 10%; site equity can contribute for a self-build
Income cap: No fixed upper or lower household-income threshold
Mortgage: Must be with a participating lender and applicants must borrow the maximum available to them, up to four times income
Service charge: 0% in years 1–5; 1.75% in years 6–15; 2.15% in years 16–29; 2.85% from year 30
Repayment deadline: No routine fixed date, but full redemption is compulsory after certain events such as selling or moving to a non-participating lender
Price ceilings: €375,000 to €500,000 in September 2026, depending on local authority and, in Waterford, property type
What is the First Home Scheme?
The First Home Scheme, or FHS, is funded by the Government of Ireland and participating mortgage lenders. It is designed to bridge a genuine funding gap after the buyer combines their deposit and maximum available mortgage.
Suppose an eligible home costs €400,000, you have a €40,000 deposit and your lender will advance €300,000. The remaining €60,000 gap could potentially be funded by the FHS. In return, the scheme would hold a 15% equity share because €60,000 is 15% of €400,000.
You own and live in the property, but the FHS interest must be dealt with when you sell or another mandatory-redemption event occurs. You can also buy back some or all of the share voluntarily.
The product is different from a grant. It is also different from an interest-bearing mortgage: the equity percentage, rather than a fixed loan balance, generally determines the redemption amount.
First Home Scheme eligibility: who can qualify?
Applicants must meet all of the main personal, mortgage and property conditions.
Buyer requirements
You must:
be at least 18;
have a right to reside in the State;
be a first-time buyer or an eligible “fresh start” buyer;
have mortgage approval from a participating lender;
borrow the maximum amount available from that lender, up to four times household income;
not use a Central Bank macroprudential exception for the same purchase; and
provide a minimum 10% deposit. For a self-build, equity in the site may contribute to the deposit requirement.
A first-time buyer is broadly someone who has never bought or built a home for their occupation in Ireland or abroad and does not own, or have a beneficial interest in, another dwelling. Owning agricultural land, business premises without living accommodation, or a site intended for the eligible self-build does not automatically disqualify an applicant.
“Fresh start” eligibility can include a person whose relationship has ended and who retains no beneficial interest in the former family home, or someone who disposed of a previous home through a qualifying personal-insolvency, bankruptcy or related legal process.
There is no set FHS household-income ceiling. Income still matters in practice because the lender decides affordability and how much it will lend.
Participating lenders
In September 2026, the scheme lists:
AIB, including Haven Mortgages and EBS;
Bank of Ireland Group; and
PTSB.
Using a mortgage provider outside this group makes the purchase ineligible. Switching later to a non-participating lender requires the FHS share and accrued charges to be redeemed in full.
Eligible properties
The property must be in the Republic of Ireland, become your principal private residence and fall within the applicable price ceiling. The main eligible routes are:
A newly built house or apartment in a private development.
An eligible self-build on a site you own or are purchasing.
The home you currently rent, where you have received a valid Notice of Termination because the landlord is selling it. The landlord must be registered with the Residential Tenancies Board for this tenant-purchase route.
Ordinary second-hand homes are not covered, except through the specific Tenant Home Purchase product. The FHS cannot fund the purchase of a self-build site or demolition costs.
The FHS also says it cannot be combined with the Affordable Home Purchase Scheme or a Local Authority Home Loan. It can be combined with Help to Buy if the separate Help to Buy rules are satisfied.
How much can the First Home Scheme provide?
The scheme funds only the assessed shortfall. Its headline maximum is not an automatic entitlement.
PositionFHS funding limitNot using Help to BuyUp to 30%Using Help to BuyUp to 20%Minimum facility2.5% or €10,000, whichever is higher
An Eligibility Certificate is indicative, not a final offer or guarantee. The final amount depends on the documented gap between the deposit, approved mortgage and eligible property cost.
First Home Scheme property price ceilings
These were the official ceilings displayed in September 2026. They are reviewed regularly, so buyers should check again before reserving a property or submitting an application.
Cork City, Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin and Wicklow: €500,000 for houses, apartments and self-build homes.
Galway City, Kildare and Meath: €475,000 for houses, apartments and self-build homes.
Cork County, Galway County and Limerick City and County: €450,000 for houses, apartments and self-build homes.
Kerry, Louth and Mayo: €425,000 for houses, apartments and self-build homes.
Waterford City and County: €400,000 for houses and self-build homes, with a higher €450,000 limit for apartments.
Clare, Donegal, Kilkenny, Laois, Leitrim, Roscommon, Sligo, Westmeath and Wexford: €400,000 for houses, apartments and self-build homes.
Carlow, Cavan, Longford, Monaghan, Offaly and Tipperary: €375,000 for houses, apartments and self-build homes.
For a self-build, the ceiling covers the costs needed to complete the project, including connection charges, local-authority charges and professional fees. It does not mean the FHS will finance every cost.
What does the First Home Scheme cost?
There are two different costs to understand.
1. The equity share tracks the property value
If the FHS takes 15% and the property later rises in value, buying back the full share will normally cost 15% of the later eligible market value. If the value falls, the redemption amount can also fall. This makes the eventual euro cost uncertain.
For approved material alterations, certain value added by the homeowner may be excluded from the redemption valuation. The scheme defines these narrowly, including works that add living accommodation, improve disability access or raise the BER by at least two ratings. Routine improvements such as flooring, a bathroom replacement or landscaping are not treated the same way.
2. Service charges start in year six
Period after drawdownAnnual service-charge rateYears 1–50%Years 6–151.75%Years 16–292.15%Year 30 onward2.85%
The rates are fixed for the life of the facility. The charge is calculated against the original equity amount, adjusted where equity has been redeemed, rather than the home’s current market value. It accrues daily and is applied monthly.
Payment can be made monthly or annually, or deferred. Deferral carries no additional charge, but the unpaid amount continues to accumulate and eventually becomes payable. It is therefore a cash-flow option, not a waiver.
Buyers should also budget for independent legal and financial advice and possible valuation fees. These third-party costs are separate from the FHS service charge.
Worked example: what could a 15% share cost?
Assumptions:
New home price: €400,000
Household gross income: €75,000
Maximum mortgage assumed: €300,000, or four times income
Deposit: €40,000
Help to Buy: not used
FHS funding: €60,000
FHS equity percentage: 15%
Full redemption at the end of year 10
No partial redemptions; service charges paid rather than deferred
The funding position is:
€400,000 purchase price − €300,000 mortgage − €40,000 deposit = €60,000 FHS gap.
If the home is valued at €460,000 at redemption, the 15% share is:
€460,000 × 15% = €69,000.
The service charge in each of years 6–10 is:
€60,000 × 1.75% = €1,050 a year.
Five years of charges would total approximately €5,250, assuming 365-day years and no partial redemption. The combined redemption and service-charge cost would therefore be about €74,250, plus any valuation or professional costs.
If the property remained worth €400,000, the share would still be €60,000 and the equivalent total would be about €65,250. The €9,000 difference shows why buyers should model property-value changes as well as service charges.
This is an illustration, not a forecast. A lender may approve less than four times income after its affordability assessment.
How to apply for the First Home Scheme
Step 1: Establish your deposit and mortgage position
Seek Approval in Principle from a participating lender and identify the maximum mortgage available. Decide whether you intend to use Help to Buy.
Step 2: Check the property and estimated gap
Confirm that the property type and price qualify in the correct local-authority area. Use the official eligibility calculator to estimate the possible FHS range.
Step 3: Start the FHS application
Register through the FHS customer portal. A Preliminary Certificate can help while you finalise the property, lender and Help to Buy decision.
Step 4: Submit the application and documents
At submission, you must have selected the property. The main documents listed by the FHS are:
Approval in Principle from a participating lender, valid for at least eight weeks from submission;
photo identification for every applicant, valid for at least six further months;
proof of current address for every applicant, dated within the previous six months;
a valid Notice of Termination for a Tenant Home Purchase application; and
estimated build costs for a self-build.
Mobile-phone bills are not accepted as address evidence on the scheme’s published list.
Step 5: Obtain the Eligibility Certificate and mortgage offer
If the initial assessment succeeds, the FHS issues an Eligibility Certificate showing an indicative range. Give it to the lender. The lender then completes its mortgage assessment and, if approved, issues a Mortgage Letter of Offer.
Step 6: Complete the FHS contract through your solicitor
Upload the mortgage offer and any additional requested documents. If final approval is granted, the FHS issues a Customer Contract. You sign it with your solicitor, who returns the required paperwork and handles the release of FHS money alongside the mortgage drawdown.
For self-builds, certified costs and valuations are required. Planning permission must be in place and construction must not have started before the FHS contract is signed. Drawdown is a single transaction, must occur within 12 months of signing and requires certification that at least 50% of the works for which FHS money is required are complete.
Buying back the equity share
You may redeem all or part of the share. A partial redemption must normally be at least 5% of the original FHS equity amount, and no more than two partial redemptions are permitted in any 12-month period. Partial redemption on a self-build is unavailable until construction is complete.
For a new build or tenant purchase, the original lender valuation applies for six months after drawdown. After that, a fresh valuation from an FHS-approved valuer is normally required and is valid for 12 months. Different timing rules apply to self-builds.
Full redemption, including outstanding service charges, is compulsory if:
the property is sold;
it stops being your principal private residence;
the mortgage is switched to a non-participating lender; or
the homeowner dies, or the last surviving applicant dies on a joint facility.
Renting out the entire property is not permitted without triggering repayment. Renting a room is allowed where you continue to live there and the property remains your principal private residence.
Advantages of the First Home Scheme
It can bridge a deposit-and-mortgage shortfall that would otherwise prevent a purchase.
There is no fixed household-income cap.
No service charge applies during the first five years.
Voluntary partial redemptions allow the equity share to be reduced over time.
It covers eligible new builds, self-builds and a defined tenant-purchase route nationwide.
It can be combined with Help to Buy, subject to both schemes’ rules.
Limitations and risks
The FHS receives a percentage share, so the buyback cost can increase with the property’s value.
Service charges begin in year six and rise at later stages.
Deferring charges postpones rather than removes the bill.
Local price ceilings and eligible-property rules restrict choice.
Only participating mortgage lenders can be used while retaining the facility.
A Central Bank lending exception cannot be used alongside the FHS.
Selling, moving out, letting the full home or switching to a non-participating lender can force full redemption.
Legal, valuation and financial-advice costs may apply.
The FHS states that its equity product is not regulated by the Central Bank of Ireland or covered by the Central Bank’s statutory codes, although consumer-law rights remain.
Practical mistakes to avoid
Treating the FHS contribution as a grant rather than an equity interest.
Budgeting only for the service charge and ignoring a possible rise in the redemption value.
Assuming that qualifying for 30% means the full 30% will be offered.
Reserving a home before checking the exact local-authority ceiling and property type.
Letting Approval in Principle expire: the Eligibility Certificate expires on the same date.
Forgetting that Help to Buy reduces the maximum FHS share to 20%.
Planning a later mortgage switch without checking whether the new lender participates.
Deferring service charges without maintaining a record of the accumulating liability.
Frequently asked questions
Is the First Home Scheme a loan?
No. It is a shared-equity facility. The scheme provides money in exchange for a percentage equity share in the home.
Do I have to repay the First Home Scheme?
There is no normal fixed repayment date, but the share must eventually be redeemed after specified events, including sale. You can buy it back voluntarily earlier.
Can I use the First Home Scheme and Help to Buy together?
Yes, if you qualify for both. Using Help to Buy reduces the maximum FHS equity share from 30% to 20%.
Can I use it to buy a second-hand home?
Generally no. The exception is the Tenant Home Purchase product for an eligible tenant buying the home they already rent after receiving a qualifying Notice of Termination because the landlord is selling.
Is there an income limit?
The FHS has no set household-income cap. You still need a mortgage and must pass the lender’s affordability assessment.
Can I rent out the home later?
You cannot rent out the full home while retaining the facility because it must remain your principal private residence. Renting a room is permitted if you continue to live there.
Can I buy back only part of the share?
Yes. The standard minimum partial redemption is 5% of the original FHS amount, with a maximum of two partial redemptions in 12 months.
What happens if my home rises in value?
The percentage held by the FHS remains, so the euro amount required to redeem it normally rises. Approved value attributable to certain material alterations may be excluded under the scheme’s rules.
Final Thoughts
The First Home Scheme can make an otherwise unaffordable eligible home achievable, but the decision should be based on the long-term equity cost, not simply the absence of service charges for five years. Confirm the current price ceiling, obtain mortgage Approval in Principle, calculate the smallest share needed and model what redemption could cost if the property rises in value.
Before committing, read the Customer Contract with a solicitor and consider regulated independent financial advice. Scheme ceilings, participating lenders, eligibility rules and associated government supports can change.
Methodology and financial-information disclaimer
Information checked and updated: September 2026.
This guide was checked against First Home Scheme, Government of Ireland, Central Bank of Ireland and Revenue information available on 1 September 2026. Calculations are illustrative and rounded where stated. This article is general information, not individual financial, mortgage, tax or legal advice.
Sources and Further Information