The First Home Scheme can be a fantastic way to bridge the affordability gap and get onto the property ladder. But remember, it’s not free money. You are exchanging a percentage of ownership in your new home for funds today to help you buy that home.
Who takes the equity stake, what’s involved, what’s the cost and what’s the risk?
Here we answer 20 of the most common questions answered in our Instagram question box.
- Can you give a general overview of the First Home Scheme?
The First Home Scheme (FHS) helps eligible buyers bridge the gap between their mortgage, deposit and the cost of their home.
It’s a shared equity scheme, meaning the Government and participating lenders provide funding in return for a percentage share in your property.
You can receive up to 30% of the property price, or 20% if you’re also using Help to Buy.
Think of the schemes as – the help to buy can help with your deposit and the first home scheme helps to bridge the gap on affordability to allow you to buy a home that you would not be able to purchase without the support of the scheme.
- Is there a cap on the house price, similar to Help to Buy?
Yes. Unlike Help to Buy, which has a €500,000 property price cap, the First Home Scheme has different price ceilings depending on the county or local authority area.
Some areas also have different limits for houses and apartments.
You can check the price ceiling for your area on the First Home Scheme website. Highest ceiling is €500,000 (Dublin, Cork City, Wicklow), lowest ceiling is €375,000.
The ceilings are reviewed twice yearly.
- Is the First Home Scheme just for new builds?
No. While it is primarily designed for new-build homes, it can also be used for:
- Eligible self-build properties.
- Purchasing your rented home if your landlord is selling and you have received a qualifying Notice of Termination. Outside of a tenant purchase it is not available for purchasing second-hand properties on the open market.
- Is it risky to use the First Home Scheme?
It’s not necessarily risky, but you need to understand how shared equity works.
Who will have an equity stake in your home – the First Home Scheme DAC which is essentially the Government and participating lenders currently AIB, BOI, EBS. The scheme was put in place to aid home ownership.
The equity stake contributed by the first home scheme must be repaid but only on death, sale of the home, property no longer your principle private residence or if you move to a lender outside of the participating lenders to the first home scheme.
You can however choose to buy back the equity stake and can do so by getting a valuation.
The biggest consideration is that the amount you repay is linked to your property’s value.
If the FHS owns 20% of your home and its value increases, the cost of buying back that 20% also increases. If the value of your home decreases then the 20% buy back is based on the lower valuation.
You should also factor in service charges from year six.
If you think about it when you take your mortgage and say you have a 10% deposit, the bank has first charge on 90% of your home so if you sell it you repay it etc. The first home scheme DAC having a stake isn’t hugely different except for the fact that if the value of the home goes up and you do need to repay the sum the amount you repay depends on the value at time of sale. With a mortgage, you owe the amount owing and its not related to equity.
- If you can afford not to use it, would you recommend still using it?
Generally, if you can comfortably afford the property without the scheme, I would lean towards not using it.
Why? Because you are retaining 100% ownership of your property and avoiding future service charges.
However, there may be circumstances where retaining savings or reducing mortgage repayments makes using the scheme worthwhile.
It’s worth comparing both options. One thing to note however is that when apply for the first home scheme you must avail of the full mortgage you are eligible for within Central Bank rules of 4x income.
- Can you get a green mortgage rate with the First Home Scheme?
Yes and Green rates are the lowest rates on the market for properties with an A or B energy rating.
You can qualify for a green mortgage rate while using the First Home Scheme, provided your property meets the lender’s BER requirements and you satisfy its mortgage criteria.
Many new builds have excellent BER ratings, so this can be a great combination.
- What are the downsides to the First Home Scheme?
There are three main considerations:
- Shared equity: The scheme owns a percentage of your property.
- Property value appreciation: If your home increases in value, buying back that percentage becomes more expensive.
- Service charges: 0% in years 1-5, then 1.75% years 6-15, 2.15% years 16-29 and 2.85% year 30 onwards e.g. you get €50,000 from first home scheme, in year 6 you will pay a service charge of €875 per annum.
To note the service charge is lower than current mortgage interest rates.
These charges are calculated on the outstanding equity facility, not the full property value.
- Can you use a mortgage, savings AND the First Home Scheme together?
Absolutely!
You can combine your mortgage, savings and First Home Scheme funding to purchase your home.
For example, on a €500,000 property: Mortgage €360,000 + savings/deposit €40,000 plus first home scheme €100,000 = €500,000.
However, you generally must borrow the maximum mortgage available to you under Central Bank rules 4x income, and the funding must bridge a genuine affordability gap.
- Who is eligible for the First Home Scheme?
You may qualify if:
- You are a first-time buyer or an eligible Fresh Start applicant.
- You are aged 18 or over.
- You have mortgage approval from a participating lender.
- You are borrowing the maximum mortgage available to you under the scheme’s rules.
- Your property falls within the relevant price ceiling.
- You will live in the property as your main residence.
Importantly, there is no maximum household income limit.
- Can the First Home Scheme be used when doing a new build (self build)?
Yes. The First Home Scheme isn’t just for buying a new home from a developer. It can also help you build your own home on a site you own or are purchasing.
You can receive up to 30% of the eligible build cost, or 20% if you’re also using Help to Buy.
You must meet the scheme’s eligibility criteria, and importantly, construction must not have started before you apply.
- Can the scheme be used when buying a derelict house or a house that needs work?
Generally, no.
The First Home Scheme isn’t designed to fund the purchase or renovation of second-hand properties.
It’s primarily for new builds, self-builds and certain tenants purchasing their rented homes.
If you are buying a derelict property, you may qualify for the Vacant Property Refurbishment Grant instead.
- Is there an upper income limit?
No. And this is something many people don’t realise.
There is no maximum household income limit for the First Home Scheme.
However, you must have a genuine funding gap between your mortgage, deposit and the property’s purchase price.
You must also generally borrow the maximum mortgage available to you under the Central Banks income lending rules, up to four times your income.
- Can you explain the Fresh Start principle?
Fresh Start means you don’t necessarily have to be a first-time buyer to qualify.
If you have previously owned a home but are now separated or divorced with no interest in the prior home, you may qualify for the First Home Scheme.
The key requirement is that you no longer have a beneficial ownership interest in your previous home.
People who have lost their home through qualifying insolvency proceedings may also be eligible.
You must still satisfy the scheme’s other criteria.
- Can you use the scheme on a second-hand property that will be your first home?
Generally, no.
Even if you are a first-time buyer, the First Home Scheme is primarily for newly built homes.
There is one important exception –
If you are currently renting a property and your landlord is selling it, you may qualify to purchase that home through the scheme’s Tenant Home Purchase product.
A qualifying Notice of Termination is required.
- Is it only for specific types of houses? What are the inclusion and exclusion criteria?
Yes, there are restrictions on the types of properties that qualify.
The scheme covers:
- Newly built houses and apartments in private developments.
- Eligible self-build homes on your own site.
- Certain rented properties where the tenant is purchasing from their landlord.
It generally excludes:
- Second-hand properties purchased on the open market.
- Investment properties or holiday homes.
- Properties above the local authority price ceiling.
The property must be your principal private residence.
- Is the First Home Scheme risky?
There are risks, but the biggest one to understand is shared equity.
If the scheme provides 20% of your property’s purchase price, it receives a 20% equity share.
If your home increases in value, the amount required to buy back that share also increases.
For example:
You receive €80,000 from the scheme on a €400,000 home.
Your home increases in value to €500,000.
Buying back that 20% now costs €100,000.
You also need to consider service charges from year six.
- Will I pay interest?
No, not traditional mortgage interest. But there are service charges.
For the first five years, there are no service charges. After that service charges apply as noted above.
It is not however designed like a traditional annuity mortgage where you pay a sum each month and it reduces the amount you owe. The annual charge you pay is a service charge so not interest on a loan. The equity can be repaid if you decide you can afford or would like to do so. A valuation is required if you do decide to repay the equity sum and the amount due back will be determined at time of valuation.
- Tell me everything about the First Home Scheme for Co. Meath!
The current property price ceiling is €475,000 for houses, apartments and eligible self-builds in Co Meath.
You could potentially receive:
- Up to 30% of the property price without Help to Buy.
- Up to 20% if you are also using Help to Buy.
For example, on a €450,000 property, the maximum potential support is €135,000 without Help to Buy, or €90,000 with it.
The amount you actually qualify for depends on your mortgage, deposit and funding gap.
Our team can help assess your mortgage eligibility click Get a Mortgage Here!
- How does Fresh Start work if I’m recently separated, have sold my first home and earn €86,000 per year?
If you have separated from your partner and sold your previous family home, you may qualify under the Fresh Start principle, provided you no longer retain a beneficial interest in that property.
Your €86,000, at four times your salary, that’s potentially €344,000 but subject to full assessment.
If you are purchasing an eligible new build above that amount, and your deposit doesn’t cover the difference, the First Home Scheme may help bridge the gap.
Your eligibility will depend on your circumstances, including the legal status of your separation, available deposit and mortgage approval.
- This isn’t really a question but it’s a big tip! Where to start?
At doddl our team of expert advisors can talk you through eligibility for the schemes, help to buy and first home scheme. We can get your mortgage approval in place and guide you from enquiry to keys!
We work with all major lenders, offer lowest market rates including Green rates and our service is free.
Contact our team for advice – Start Here – Get a Mortgage
Answers based on available information October 2026 and subject to full scheme and eligibility terms.
