Buying a home is a dream for many. In Ireland, several schemes help turn that dream into reality. With rising house prices and challenges for first-time buyers, these programs offers support for home buyers. In this article, with insights from Joe Flanagan, Business Development Manager at Irish Mortgage Corporation, we explore key supports available to Irish home buyers.
Help to Buy (HTB) Scheme: A Lifeline for First-Time Buyers
The Help to Buy (HTB) scheme offers vital relief for first-time buyers, especially those looking at new builds. Its main goal is to assist with purchasing homes valued up to €500,000. What sets it apart is how it supports buyers financially.
Under HTB, eligible buyers can claim a refund of income tax and Deposit Interest Retention Tax (DIRT) paid over the past four years. This refund goes toward the 10% deposit, easing upfront costs.
To qualify, buyers must take out a mortgage covering at least 70% of the property price. They also need to live in the property for at least five years. This encourages long-term residency and discourages misuse of the scheme.
Joe highlights the impact: “The Help to Buy scheme has been instrumental in helping first-time buyers step onto the property ladder, particularly in the face of escalating property prices.”
First Home Scheme (FHS): A Gateway to Affordable Housing
The First Home Scheme (FHS) helps buyers who face financial constraints. It supports both those purchasing new builds and tenants buying second-hand homes through the Tenant Home Purchase scheme.
Run by BCM Global, the scheme secures an equity stake in the home through a legal charge, known as an inhibition. This shared ownership model reduces upfront costs and makes ownership more achievable.
After five years, a service charge applies. This is factored into buyers’ borrowing capacity, ensuring they understand future commitments.
Affordable Housing Scheme (AFH): Bridging the Affordability Gap
The Affordable Housing Scheme (AFH) helps first-time buyers whose mortgage and savings fall short of the market value of new homes. It enables access to homes sold at reduced prices by local authorities.
Local authorities take an equity stake matching the price difference. Buyers can buy back this stake later, moving toward full ownership.
Each Local Authority runs its own version of the scheme. Applicants must coordinate with their LA and submit a legal priorities agreement for lender approval.
Vacant Property Scheme: Breathing Life into Empty Homes
This scheme targets neglected and unused properties. Funded by the Croí Cónaithe Towns Fund, it offers financial support to those refurbishing homes that have been vacant for at least two years before 2008.
Applicants can get up to €50,000, plus an additional €20,000 if renovation costs are higher. However, if the property is sold within ten years, a portion or all of the grant must be repaid. The amount depends on how long the owner lived there.
The grant doesn’t factor into the bank’s financial assessment and can’t be used as part of the buyer’s balance of funds. Buyers should be ready to cover any repair costs beyond the grant amount.
Ireland’s range of home buyer schemes reflects a strong commitment to making ownership achievable. These initiatives—Help to Buy, First Home, Affordable Housing, and Vacant Property schemes—aim to empower buyers and strengthen communities. As Joe sums it up: “These initiatives are not just about buying a house; they’re about building homes, communities, and futures.”
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