First Time Home Buyer Incentive Ireland: Schemes Guide

If you’ve been saving toward a deposit in Ireland, you probably already suspect the system is more tangled than it looks. Two major schemes — the First Home Scheme and Help to Buy — promise real money toward your first property, but the eligibility rules, caps, and combination limits trip up even cautious buyers. This guide walks through exactly what each scheme offers, who’s eligible, and where the obvious pitfalls hide.

First Home Scheme equity share: up to 30% · Help to Buy property cap: €500,000 · Minimum mortgage LTV for schemes: 70% · HTB incentive type: deposit relief · First Home Scheme applicants: first-time buyers

This table summarizes the key parameters across both schemes, making it easy to compare limits and requirements at a glance.

What is the first time home buyer scheme in Ireland?

Ireland operates two main state-backed incentives for first-time buyers: the First Home Scheme and the Help to Buy scheme. They work differently and address different parts of the purchase puzzle.

First Home Scheme details

The First Home Scheme is a shared-equity arrangement where the government co-invests up to 30% of your property purchase price or build cost in exchange for a proportional equity stake. Applicants must be over 18, hold a right to reside in the Republic of Ireland, and obtain mortgage approval with a participating lender at the maximum available amount — typically up to 4 times annual income without invoking the Macro Prudential Exception. The minimum equity share is 2.5% of the purchase price or €10,000, whichever is higher. Crucially, income is not assessed by the scheme itself; the lenders handle that through standard mortgage approval. Both applicants in a joint application must meet the first-time or fresh-start buyer criteria.

“Your income is not assessed by First Home Scheme as part of the FHS eligibility criteria.”

— Evara Financial Provider, Evara FHS Guide

Help to Buy Scheme overview

The Help to Buy scheme administered by Revenue.ie provides a refund of income tax or DIRT paid in the previous four years, capped at the lesser of €30,000, 10% of the property value, or total tax paid. It applies only to new builds and self-builds with a maximum property price of €500,000 and requires a mortgage of at least 70% of the property value. Applicants must have been tax-compliant for the preceding four years and intend to use the property as their principal private residence for a minimum of five years — failure to meet this residency requirement triggers a clawback of the incentive.

“The Help to Buy (HTB) Scheme is an incentive for first-time property purchasers. It will help you with the deposit.”

— Irish Revenue Service, Revenue.ie Official

What grants do first-time buyers get?

Both schemes offer meaningful deposit relief, but the structure differs significantly and the two can be combined under specific conditions.

First Home Scheme equity

The First Home Scheme’s shared equity ranges from 20–30% for standalone applications. For new builds in private developments, self-builds on owned sites, or properties currently rented where the landlord has issued a termination notice for sale, the scheme equity can be applied. All properties must fall within local authority price ceilings and be used as the principal private residence. Recently completed homes — those finished within the last three years — may qualify if an engineer certifies they have remained unused.

Help to Buy deposit relief

The Help to Buy payment goes directly to the builder for new build purchases or into your mortgage account for self-builds, effectively boosting your deposit position. The refund is calculated on the lesser of three amounts: €30,000, 10% of the property purchase price, or your cumulative income tax and DIRT payments over the preceding four tax years. This structure makes HTB particularly valuable for buyers who have paid significant tax but may not have large cash savings accumulated.

Am I entitled to first-time buyer?

Eligibility depends on your ownership history and the specific scheme requirements.

First-time buyer criteria

For the First Home Scheme, first-time buyers are defined as persons who have never purchased or built a dwelling for their occupation and do not own any dwelling anywhere. Exemptions include farmland, commercial property without living quarters, or a self-build site you have not yet used. Fresh start homebuyers — those who previously owned property but lost it due to relationship breakdown, insolvency, or similar — qualify under the same framework.

For Help to Buy, the definition is stricter: you must never have owned property in Ireland or abroad. Tax compliance for the preceding four years is also mandatory, with applicants required to intend the property as their principal private residence for at least five years.

Property price limits

Help to Buy caps property values at €500,000. The First Home Scheme operates within local authority price ceilings that vary by county and property type, with higher limits typically applying in Dublin. These regional variations make it essential to check your specific local authority’s current thresholds before budgeting.

How much deposit do I need for a 300k house?

Standard deposit requirements and scheme-specific reductions affect your upfront costs significantly.

Standard deposit rules

First-time buyers typically need a 10% deposit of the property price. For a €300,000 home, that means €30,000. However, both schemes can reduce your effective deposit burden: HTB refunds can cover a substantial portion of your deposit, while FHS equity reduces the amount you need to finance through your mortgage.

Scheme reductions

The First Home Scheme requires a minimum deposit of 10%, but the government equity contribution means your mortgage amount is lower. Help to Buy directly reduces your deposit requirement by refunding up to €30,000 (or 10% of property value, whichever is lower) as a cash payment. When combined, the schemes can substantially lower the cash needed at closing, though the maximum FHS equity drops to 20% in combo scenarios.

What are the biggest first time home buyer mistakes?

Avoiding common pitfalls can save thousands and prevent application rejections.

Overlooking eligibility

One of the most frequent errors is assuming scheme eligibility without verification. The First Home Scheme explicitly requires mortgage approval with a participating lender at the maximum available amount before you apply. Skipping this step means your application will be rejected. Similarly, failing to check local authority price ceilings for your region can result in discovering mid-process that your target property exceeds limits.

Ignoring mortgage costs

Buyers often focus on the deposit relief without calculating the full mortgage obligation. With a 70% minimum LTV required for both schemes, your mortgage covers the majority of the property value. Ensuring you can afford repayments on a loan typically 3-4 times your annual income is essential before committing to any scheme-assisted purchase.

Application steps

1. Secure mortgage approval in principle with a participating lender
2. Run the eligibility calculator at firsthomescheme.ie to confirm initial qualification
3. Gather required documents: proof of identity, residency rights, tax compliance records
4. Apply through the First Home Scheme portal after mortgage approval
5. For HTB, submit your claim via Revenue.ie after property purchase closes
6. Maintain principal residence status for at least five years to avoid clawback