First Home Scheme Ireland 2026: Government Equity Explained
The First Home Scheme (FHS) is a shared equity scheme where the Irish government and participating banks take an equity stake of up to 30% in your new home — reducing the mortgage you need. There is no monthly repayment on the equity share. The scheme applies to new builds and apartments valued up to €500,000 in most counties.
How the First Home Scheme works
The First Home Scheme bridges the gap between your deposit plus mortgage and the property purchase price. The government (via the Housing Agency) and your bank jointly provide the equity top-up — you get the keys but they own a share of the home.
Example: property costs €380,000. You have a 10% deposit (€38,000) and can borrow €285,000 (75% LTV). The gap is €57,000 — the FHS takes a 15% equity stake (€57,000) and you own the remaining 85%.
| Location | Maximum property value |
|---|---|
| Dublin, Wicklow, Kildare, Meath | €500,000 |
| Cork, Galway city | €450,000 |
| All other counties | €400,000 |
Who qualifies for the First Home Scheme?
Eligibility requirements: (1) first-time buyer, or a 'fresh start' applicant (divorced, separated, or who owned a home that was repossessed); (2) the property must be a new build or newly constructed apartment; (3) income limits apply — combined gross income cannot exceed €96,000 for two buyers or €80,000 for a single buyer; (4) you must take out a mortgage from a participating lender (AIB, Bank of Ireland, Haven, EBS, PTSB, or Avant Money).
Charges on the equity share
There are no monthly repayments on the FHS equity share for the first 5 years. From year 6 onwards, a service charge applies: 1.75% per annum on the outstanding equity balance in years 6–15, rising to 2.15% in years 16–29, and 2.85% from year 30 onward.
You can buy out the government's share at any time — in full or in part — at the market value of the equity percentage at that time.
First Home Scheme vs Help to Buy
These two schemes can be combined. Help to Buy provides a cash tax refund (up to €30,000) that counts as part of your deposit. The FHS then bridges any remaining gap.
If you use both, the FHS stake is reduced to account for the HTB amount, so the combined government support cannot exceed 30% of the purchase price. Using both together gives first-time buyers the strongest possible purchasing power on a new build.
Frequently asked questions
Does the government own part of my home under the First Home Scheme?+
Yes. The Housing Agency holds an equity stake on behalf of the state. This is registered as a charge on the property. You live in the home as normal but the government shares in any future price appreciation proportionate to its equity stake.
Can I use the First Home Scheme on a second-hand property?+
No. The scheme is restricted to new builds and newly constructed apartments. Second-hand properties are not eligible regardless of price.
What happens when I sell my home?+
When you sell, the FHS equity share is repaid from the sale proceeds at current market value. If the property increased in value, the government's stake is worth more; if it decreased, the stake is worth less.
Are there income limits for the First Home Scheme?+
Yes. Single buyers cannot have a gross income above €80,000. Joint buyers cannot exceed €96,000 combined. These limits are assessed at the time of application.
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