Joey Murray (QFA)

Budget 2027 has introduced several measures that may affect people saving for their first home. The most significant change is the increase in the maximum Help to Buy relief from €30,000 to €35,000.

If you are planning to buy or build a new home, it is worth understanding how this change could affect your deposit and mortgage plans.

Help to Buy increases to €35,000

Help to Buy is available to qualifying first-time buyers purchasing or building a new home.

The maximum relief has increased by €5,000, from €30,000 to €35,000. The increase applies immediately. However, the amount you can actually claim will still depend on the relevant limits, including:

The amount of income tax and Deposit Interest Retention Tax (DIRT) you paid over the previous four years.
10% of the purchase price of the property.
The maximum Help to Buy limit of €35,000.

The €500,000 ceiling on the price of a new-build property eligible for Help to Buy has not changed.

This means that the additional support may help eligible buyers with their deposit, but it does not increase the maximum property price to which the scheme applies.

How can you find out how much you qualify for?

You can check your potential Help to Buy entitlement by logging into your Revenue myAccount through ROS and going to the Help to Buy section.

You can apply as an individual or add a second applicant. Revenue will then calculate how much you may be entitled to claim, based on the relevant tax and DIRT paid during the previous four years.

It is important to complete this step early. Knowing the likely level of support can help you understand your deposit position, set a realistic property budget and begin discussions with a lender.

Help to Buy is not a replacement for mortgage approval. You will still need to meet the lender’s affordability, repayment-capacity and lending criteria.

Other Budget measures

Budget 2027 also includes measures that may indirectly support people preparing for homeownership.

Rent Tax Credit

If you are currently renting, the maximum Rent Tax Credit has increased to:

€1,150 for an individual.

€2,300 for a jointly assessed couple.

While this does not directly increase your mortgage approval amount, it may reduce the net cost of renting and help you retain more money for savings and other household expenses.

National minimum wage

The national minimum wage is increasing by 79 cent to €14.94 per hour from January 2027.

For a full-time employee, the increase may improve annual income and could have a positive effect on potential mortgage borrowing, depending on the lender’s assessment and the applicant’s wider financial circumstances.

For example, based on a 38-hour working week, the gross annual increase would be approximately €1,561. Applying standard mortgage lending calculations, this could potentially increase borrowing capacity by around €6,245 for an eligible first-time buyer.

This is only an illustration. Lenders will also consider tax, existing commitments, proven repayment ability, household expenses and the applicable Central Bank lending limits. A higher salary does not automatically guarantee a higher mortgage approval.

What should first-time buyers do now?

If you are hoping to buy in the coming months, Budget 2027 is a useful prompt to review your position.

You should:

Check how much you may be entitled to under Help to Buy.
Review your savings and deposit plan.
Keep your savings consistent and clearly identifiable.
Understand your likely borrowing capacity.
Review your rent and savings repayment history.
Avoid unnecessary overdraft use or new credit commitments.
Get mortgage advice before beginning to search for a property.

The additional €5,000 available under Help to Buy may make a meaningful difference, but the right mortgage plan will depend on your income, savings, property type and individual circumstances.

How Irish Mortgage Corporation can help

No two mortgage applications are the same. At Irish Mortgage Corporation, we can help you understand:

How much you may be able to borrow.
How Help to Buy could fit into your deposit plan.
Which lenders may be suitable for your circumstances.
What your monthly repayments could look like.

What steps you can take to prepare your application.

If you are planning to buy your first home, contact me directly for a free, no-obligation chat.

Contact me on

If you would like to discuss your options in more detail, even if you are only at the early thinking stage, having clarity now can make your eventual move home and your first set of keys much easier to plan, contact me:

Tel: 01 669 1078

Email: joeym@irishmortgage.ie