WHAT IS THE FIRST HOME SCHEME ?

The First Home Scheme (FHS) is an affordable housing scheme, which helps support people to buy NEW HOMES.

The FHS is a shared equity scheme, where the State and participating banks pay up to 30% of the cost of your new home in return for a stake in your home. If you wish, you can buy back the stake at any time.

The scheme is available nationwide for first-time buyers and certain other people who want to buy a new home but can’t afford to. Your income is not assessed for the FHS.

DO I QUALIFY ?

You must be a FIRST-TIME BUYER or FRESH START applicant who is over 18 and has the right to live in Ireland.

Criteria as a ‘First-Time Buyer’ Applicant:

• You have not previously bought or built a property to live in.

• You do not own or have an interest in any property in Ireland or abroad.

You will not qualify as a First-Time Buyer if you have owned a home abroad or have previously inherited a home.

Criteria as a ‘Fresh Start’ Applicant:

This applies to those who have previously owned a home, but you no longer have a financial interest in it as a result of;

• Divorce, separation or if your relationship has ended.

• Personal insolvency or bankruptcy.

If you are buying the property with someone else, they must also be a First-Time Buyer or Fresh Start applicant.

WHAT TYPE OF PROPERTY QUALIFIES FOR FHS ?

The property you are purchasing must be a Newly Built Home in a Private Development.

The scheme does not cover second-hand homes or self-build homes.
Your home must be within the price limits (€425,000 for Kildare area).
The scheme only applies to a property that you intend to live in and as your only place of residence.

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NEW HOMES AT STATION WALK, NEWBRIDGE, CO. KILDARE JOINT SELLING AGENTS: JORDAN AUCTIONEERS & SHERRY FITZGERALD

CAN I USE ANY MORTGAGE PROVIDER ?

To avail of the FHS your mortgage must be with one of the following participating Lenders:

Bank of Ireland
Permanent TSB
Allied Irish Bank which includes AIB, Haven Mortgages and EBS

You must borrow the maximum amount available to you from one of the above lenders.

Under Central Bank rules, the general limit for mortgage borrowing is 3.5 times your gross annual income.

HOW MUCH FUNDING CAN I GET AND ARE THERE ANY COSTS ?

The minimum amount you can get is 2.5% of the property purchase price, or €10,000, whichever is higher.

You must have a deposit of at least 10% of the property’s purchase price.

You can get up to 30% of the market value of your new property with the First Home Scheme. This is reduced to 20% if you are also getting the Help to Buy Scheme.

There is no charge for the Scheme for the first 5 years of owning your home but if you have not bought out the FHS equity share in your home by the 6th year, a service charge will apply;
***Year 6–15 1.75%***
***Year 16–19 2.15%***
***Year 30+ 2.85%***
***These rates are fixed ***

CAN I BUY BACK THE EQUITY SHARE IN MY HOME ?

You can buy back the equity share in your home at any time (in one payment or partial payments) unless the following situations arise in which case the equity share must be paid off when instructed to do so;

If you sell your home or rent it out however, you can stay in the Scheme, if you want to rent out a room in your home while you live there.
If you switch mortgage provider unless your new mortgage provider is one of the approved Lenders in the Scheme.
If you die or in the case of joint applicants, the equity share must be paid off when the last applicant dies.

The equity share in your home is a percentage of the market value of your home. So, if property prices increase, the amount you have to pay back will increase and alternatively if the property prices decrease the amount to pay back decreases.

HOW DO I APPLY FOR THE FIRST HOME SCHEME ?

You can apply online for the First Home Scheme www.firsthomescheme.ie or call 0818 275 662.

FIRST HOME SCHEME