What is the First Home Scheme?
The First Home Scheme (FHS) is a shared equity scheme that helps first-time buyers bridge the gap between their mortgage/deposit and the purchase price of a new home. The State and participating banks provide up to 30% of the property's value (or 20% in some cases) in exchange for a stake in your home.
You buy back the equity share when you can afford to, or when you sell the property.
Key Figures for 2026
- Maximum equity share: Up to 30% (or 20% if not using HTB)
- Property price cap: Varies by county (e.g., €475,000 in Dublin, €350,000 in Cork, €275,000 in other areas)
- Minimum contribution: You must have a mortgage of at least 70% LTV
- Your deposit: Minimum 10% of the purchase price
Eligibility
- You must be a first-time buyer
- The property must be your principal residence
- The property must be new-build (houses or apartments)
- You must have mortgage approval in principle from a participating lender
- You must not be able to afford the property without FHS support
How It Works
- Get mortgage approval from one of the participating lenders (AIB, Bank of Ireland, PTSB, Haven)
- Check your eligibility on the FHS website
- Apply through your lender — they submit the FHS application on your behalf
- Receive approval — FHS takes an equity stake in your home
- No monthly payments on the equity share for the first 5 years
- Buy back the equity at any time based on the current market value
The Costs — Equity Buy-Back
You do not pay interest on the equity share, but when you buy it back (or sell), you repay the current market value of that percentage. For example:
- If FHS took 20% equity on a €300,000 home (€60,000), and the home is now worth €400,000, buying back costs €80,000 (20% of €400,000)
- You can buy back in stages — minimum 5% at a time
Combining with Help to Buy
You can use HTB and FHS together. HTB provides cash up front (up to €30,000), and FHS covers the remaining affordability gap. The combined total from both schemes cannot exceed what is needed to make the purchase viable.
Important 2026 Updates
- The scheme continues with the same structure in 2026
- Price caps have been updated for regional affordability
- Processing times have improved — most applications decided within 15 working days
Pros and Cons
Advantages
- No monthly payments on the equity share for 5 years
- Helps bridge the gap in high-price areas
- Can be combined with HTB
Disadvantages
- You share in any property value increase
- Equity buy-back can be expensive if prices rise sharply
- Only available for new-build homes
Official site: firsthomescheme.ie