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
2026 Price Caps by Area
The property price limits for the First Home Scheme are set by local authority area and reviewed regularly. For 2026 the buying limits are €500,000 in Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin, Cork City and Wicklow; €475,000 in Galway City, Kildare and Meath; €450,000 in counties Cork and Galway; €425,000–€450,000 in Limerick (apartments higher) and Louth; and €400,000 in Waterford, Kerry, Kilkenny, Laois, Mayo, Westmeath and Wexford, with lower limits (€375,000) across much of the rest of the country.
Note that the same limits apply whether you are buying or building. If the property exceeds your area's cap, the scheme cannot be used, even if you would otherwise qualify.
Eligibility: What the Official Rules Say
The First Home Scheme has no household income limit — the official rules state income is not considered. What matters instead is the affordability test: you must be a first-time buyer (or 'fresh start' applicant), the home must be a new build or self-build that will be your principal residence, and you must show you cannot afford the property without the scheme.
That means borrowing the maximum available under Central Bank rules — 4 times gross income for first-time buyers — with a minimum 10% deposit, and not using a Macro Prudential Exception. Mortgages must come from a participating lender: Bank of Ireland, Permanent TSB or AIB group.
The Costs: Service Charges and Buy-Back
The first five years of the FHS equity facility are interest-free. From year six, service charges apply on the amount the scheme paid: 1.75% a year in years 6–15, 2.15% in years 16–29, and 2.85% from year 30 onwards. You can pay annually or monthly, and deferrals are possible if the charge is unaffordable.
You can buy back the equity share at any time, in full or in stages (minimum 5% of the original amount, maximum two partial payments a year). Because the share tracks market value, buying back later costs more if prices rise — on a €400,000 home with 20% FHS equity, buying back after prices rise 10% costs €88,000 rather than €80,000.
FHS and HTB: The 20% Rule
If you use Help to Buy on the same property, the maximum FHS equity share is reduced from 30% to 20%. This is designed to keep total State support balanced. Most buyers still benefit from using both: HTB provides up to €30,000 of cash toward the deposit, and FHS covers the remaining gap.
Before applying, use the FHS online calculator with your income, deposit and target price to see your likely equity share — then get mortgage approval in principle from a participating lender, because the lender submits the FHS application on your behalf.