In terms of the Central Bank’s Loan-to-Income limits, first-time buyers need to have a 10% deposit towards the purchase of a property. Further, first-time buyers also need to have enough saved for other costs involved in getting a mortgage. This can be a challenge especially if you're renting and have limited disposable income to save. However, the Help to Buy Scheme and First Home Scheme are here to assist you. These initiatives provide support and accelerate the home buying process for those struggling to save a deposit that could be €30,000, €40,000 or even €50,000.

The HTB Scheme, introduced in 2017, offers a tax refund of up to 10% of the purchase price of a new house or apartment, with a maximum rebate of €30,000 to enable first-time buyers to raise the deposit for their home. The rebate amount depends on the income tax and Deposit Interest Retention Tax (DIRT) you have paid in the previous four years. It is important to note that if your total income tax and DIRT paid in the past four years is less than €30,000, the maximum rebate will be the total amount of tax you have paid. Any amount exceeding €30,000 will require additional savings.

For example, if you want to buy a newly built home for €400,000 you would need a €40,000 deposit. By utilising the HTB Scheme, you can claim up to €30,000, which means you only need €10,000 savings for your deposit.

The HTB Scheme is available until the end of 2024, and provides valuable support for first-time buyers who do not want to wait years to get onto the property ladder due to difficulties in saving for a deposit.

In July 2022, the FHS was launched as an additional support for first-time buyers of newly built properties. It is also accessible to those who previously owned a property but no longer have a beneficial interest in it due to relationship breakdown or insolvency/bankruptcy. In March 2023, the FHS was expanded to include first-time buyers who have received a Notice of Termination and wish to purchase the home they are renting. This shared equity scheme bridges the gap between your deposit, mortgage, and the home's purchase price.

The government and participating lenders (i.e. AIB - including EBS and Haven; Bank of Ireland; and permanent tsb) provide a percentage of the purchase price, and in return receive an equity share in your home. So, if you claim 15% from the FHS, you will own 85% of the home and the FHS will own the remaining 15%. The FHS will only provide up to 30% of the purchase price.

Under the FHS, you will not incur any charges for the first five years. From year six to 15, a service charge of 1.75% applies, followed by 2.15% from years 16 to 29, and 2.85% from year 30 onwards. These charges are fixed and only interest-based, without requiring capital repayments.

Depending on the additional funding you require to purchase your home, you can leverage both schemes to support your home purchase. However, it is important to note that if you already have sufficient funds from your deposit and mortgage approval, you will not be eligible for the FHS. Further, if you avail of the HTB, the maximum amount you can get from the FHS is 20% (and not 30%).

Here's an example of how you can use the HTB Scheme and FHS to support the purchase of your home:

A couple with a joint annual income of €80,000 wish to buy a home with a purchase price of €457,100. They have joint savings of €15,700. The purchase price of their home can be financed by:

To qualify for the HTB Scheme, you must be a first-time buyer and intend to purchase the property as your primary residence. You need to borrow at least 70% of the purchase price, and the home must be a newly built house or apartment valued at no more than €500,000. In the case of a self-build, the suppliers involved (i.e. architects, builders, etc.) must be registered with Revenue.

For the FHS, you need a minimum deposit of 10% and must be over 18 years old. The property must be intended as your primary residence, and you must have mortgage approval from a participating lender and borrow the maximum amount available to you.

The HTB Scheme and FHS provide vital support for first-time buyers in realising their homeownership aims and building long-term personal wealth. For more information about these supports and how they can help you, visit our website. Contact our team for personalised mortgage advice tailored to your needs and aims.