Steven Cumiskey (BBS PIB QFA)

For many first-time buyers in Ireland, the hardest part of the home-buying journey is not finding the right property but it is bridging the gap between what a lender will offer and the actual purchase price. That is exactly where the First Home Scheme (FHS) can come in.

The FHS is not the right fit for every buyer, but for the right person in the right situation it can be a powerful stepping stone into homeownership. It is designed to help you fill the gap between your mortgage approval and the cost of a new home, so that “someday” can become “soon” when it comes to getting the keys to your own front door.

What is the First Home Scheme?

The First Home Scheme is a Government-backed, shared equity scheme launched in July 2022 to support first-time buyers (and certain other eligible buyers) who:

Have saved a deposit
Have mortgage approval
Still cannot quite reach the price of a suitable new-build home or self-build.

Instead of giving you a traditional loan, the FHS provides funding in return for taking a percentage ownership (an “equity share”) in your property. Under current rules, the scheme can provide:

Up to 30% of the purchase price or build cost, if you are not also using Help to Buy
Up to 20% if you are combining the FHS with the Help to Buy incentive.

You still own and live in your home as normal. The FHS simply holds a stake in the background, which can be bought out over time if and when it suits you.

The scheme is only available through participating lenders, each with its own criteria. One of the most important parts of my role is to help you understand which lenders you qualify with and how to structure your mortgage and FHS application in a way that works for you over the long term.

The scale of impact so far

Since launch, the First Home Scheme has grown from a relatively new option into a major support for first-time buyers nationwide.

Recent figures show that:

Over 10,000 buyers across all 26 counties have now been approved under the scheme
1,037 approvals took place in the first quarter of 2026 alone – the first time more than 1,000 approvals have been recorded in a single quarter

The scheme has supported over 5,300 home purchases (including self-builds) to date

More than €350 million has been provided in shared equity support to help people buy or build their homes.

Those are not just numbers; they represent thousands of individuals, couples and families who have been able to move from renting or living at home into a place of their own, despite affordability gaps that would have stopped them otherwise.

Who can qualify?

To be eligible for the First Home Scheme, you must meet several core criteria. In broad terms, you need to:

Be over 18 years of age

Be a first-time buyer or an “other eligible buyer” (see below)

Be purchasing or building a qualified property

Have mortgage approval with a participating lender

Borrow the maximum you can from that lender (up to 4 times your income under current Central Bank rules)

Not rely on lender “exceptions” that would take you beyond those standard income limits

Have a minimum 10% deposit (for self-builds, equity in your site can count towards your deposit)

Stay within the property price ceilings for your area (for example, higher limits apply in Dublin, Cork City and Wicklow than in some other counties).

“Other eligible buyers” – Fresh Start

You may also qualify if you meet what is often called “Fresh Start” criteria. This can apply to people who:

Are divorced or separated

Have gone through a personal insolvency or bankruptcy process

No longer retain an interest in a former family home.

What counts as a “qualified property”?

A qualified property under the FHS can be:

A newly built house or apartment in a private development

A self-build on a privately owned site

In certain cases, a house or apartment you currently rent and live in, where your landlord is selling and you have received a valid Notice of Termination.

If you are unsure whether your situation fits these rules, that is exactly the point where talking to an advisor can help you avoid assumptions – whether that is ruling yourself out when you actually qualify, or going too far down the road on a property that is not eligible.

An example of how the numbers work

To see how the First Home Scheme can help bridge the gap, let us look at a simplified example of a couple buying in Dublin:

Combined income: €70,000

Maximum mortgage (at 4 times income): €280,000

Purchase price of new home: €450,000

Minimum deposit required (10%): €45,000

Between the mortgage (€280,000) and the deposit (€45,000), the couple can reach €325,000. That still leaves a shortfall of €125,000 compared with the €450,000 purchase price. Under the First Home Scheme, that €125,000 gap could potentially be covered as a shared equity contribution, which in this example would represent 27% of the property price.

A few key points to keep in mind:

The percentage (27% in this case) is what matters over time, not just the initial amount.

If your home’s value goes up, the euro value of the 27% share will go up too.

If your home’s value goes down, the euro value of that share will also fall.

You can choose to buy back the equity share (in part or in full) at any stage, subject to the scheme’s rules. Many buyers look at doing this when they have built up equity, received a pay rise, or remortgaged.

Understanding the service charge

There is no interest charged on the equity share in the traditional sense, but there is a service charge that kicks in after a number of years. The good news is that no service charge applies for the first five years you own your home.

From year six onwards, the service charge is calculated as a percentage of the original equity amount (not the current property value) at the following fixed rates

Years 0–5: 0.00%

Years 6–15: 1.75%

Years 16–29: 2.15%

Years 30+: 2.85%

Using our example:

Equity amount from the FHS: €125,000

Service charge from year 6 to year 15:

€125,000 × 1.75% = €2,187.50 per year

Which is about €182.30 per month.

This is in addition to your normal mortgage repayments, so it is important to factor it into your long-term budgeting. A key part of my work with clients is to map out how this fits alongside your mortgage, other commitments and your future plans (for example, starting a family, changing jobs or moving again).

Is the First Home Scheme right for you?

The First Home Scheme can offer real, practical help if:

You have your deposit and mortgage approval in place, but you are consistently being priced out of suitable properties.

You want to buy or build in an area where new-build prices are above what your maximum mortgage can support on its own.

You are comfortable with the idea of a shared equity partner and the service charge in exchange for getting into a home sooner.

However, it is not automatically the best option for everyone. In some cases, waiting longer, buying in a different location, or looking at alternative strategies may make more sense. The right answer depends on:

Your income and career path

Your family plans

Your appetite for risk

The specific properties you are targeting.

This is where tailored advice becomes so important.

How I can help

There is a lot to consider with the First Home Scheme – eligibility rules, property ceilings, service charges, and how it all interacts with your mortgage. That is exactly why you do not need to figure it out on your own.

As Senior Mortgage Sales Manager at Irish Mortgage Corporation, I work with first-time buyers every day to:

Clarify whether the First Home Scheme is available and suitable for their situation

Calculate their maximum mortgage with participating lenders

Compare options with and without the FHS and/or Help to Buy

Build a practical, step-by-step plan from where they are now to getting the keys.

Ready to explore your options?

If you are a first-time buyer and want to understand whether the First Home Scheme could help you buy your own home – or if you simply want clarity on how much you can borrow and what schemes you might qualify for – I am here to help.

We can look at your numbers, talk through the pros and cons in plain English, and put a realistic plan in place to get you from dreaming about a home to opening the front door.