Chapter 2 of 10 · Schemes and grants · 8 of 14
The First Home Scheme explained: the State takes a share of up to 30%
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
How the First Home Scheme shared-equity stake works: up to 30% (20% with Help to Buy), eligible homes, the service charge and buying it out.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
The First Home Scheme fills the gap between the mortgage you can get and the price of a new home. The State and the lenders who take part put in the missing money. In return, they own a share of your home until you buy it back.
This guide explains the share, the homes that qualify, the ceiling, the service charge and how to buy the share out. The First Home Scheme calculator works out your own figures.
A worked example first
Eoin earns €70,000 a year. He wants a new house in Kildare priced at €400,000. The ceiling in Kildare is €475,000, so the home qualifies.
Under the Central Bank's rules, a first-time buyer can borrow up to 4 times gross income. Gross income is pay before tax. His limit is €280,000. He has saved €40,000, which is the 10% deposit.
| Item | Amount | Share of the price |
|---|---|---|
| Price | €400,000 | 100% |
| Mortgage, 4 times income | €280,000 | 70% |
| Deposit | €40,000 | 10% |
| Gap | €80,000 | 20% |
The gap is €80,000, which is 20% of the price. That is under the 30% cap. The scheme pays the €80,000 and takes a 20% share of the home.
If Eoin sells in ten years for €500,000, the scheme's 20% share is worth €100,000. He pays that back from the sale. If the home is worth €360,000 then, the share is worth €72,000.
What the scheme is
The First Home Scheme is run by First Home Scheme DAC. It is funded by the State and by the lenders who take part. It is called a shared equity scheme. Equity is the part of a home you own outright. Under the scheme, you share that ownership with the scheme until you buy it out.
The scheme started in 2022. It runs to 1 June 2027 on the last confirmed extension. The ceilings and the rules are reviewed twice a year. The changes page tracks them.
How much the scheme can put in
The scheme can fund up to 30% of the price. If you are also using Help to Buy, the cap is 20%. The minimum is 2.5%.
| Situation | Most the scheme can fund | Least |
|---|---|---|
| Without Help to Buy | 30% of the price | 2.5% |
| With Help to Buy | 20% of the price | 2.5% |
The scheme fills a gap. It does not add to a mortgage you could have got anyway. Your mortgage must be the most your lender allows under the Central Bank's limits, and you must put in your own deposit. The scheme funds what is left.
Who qualifies
- First-time buyers: nobody on the application has owned a home before, here or abroad.
- Fresh Start applicants: people who are separated or divorced, or who have been through insolvency, and have no interest in a home now.
- Buyers taking a mortgage from a lender that takes part in the scheme.
The home must be your main home. You cannot use the scheme for a buy-to-let or a holiday home.
Which homes qualify
- A new build in a private development.
- A home you build yourself.
- A home bought through the Tenant Home Purchase route, where a tenant buys the home they rent from a private landlord.
Second-hand homes on the open market do not qualify in general. The price must be within the ceiling for your local authority.
The price ceiling
Each local authority has a ceiling. The ceilings run from €375,000 to €500,000. A few examples:
| Area | Ceiling |
|---|---|
| Dublin (all four councils) | €500,000 |
| Cork City | €500,000 |
| Cork County | €450,000 |
| Galway City | €475,000 |
| Galway County | €450,000 |
| Kildare, Meath | €475,000 |
| Longford, Carlow, Cavan | €375,000 |
The full table of ceilings lists every county, and each county page carries its own figure. Waterford is the one county with a different ceiling for apartments.
The service charge
For the first five years there is no charge on the share. From year six, you pay an annual service charge on the scheme's share. The charge steps up over time. The scheme publishes the rates on its site; they are not reproduced here until confirmed.
The service charge is not a repayment. It does not reduce the share. It is a yearly cost of keeping the scheme's money in your home.
Buying out the share
You can buy out the share at any time, in full or in part. The price is the value of the home at that time, times the share. The scheme sets a minimum amount for a part buy-out.
A home bought for €400,000 with a 20% share. Five years on, a valuer puts it at €440,000. The share is now worth 20% of €440,000, which is €88,000. That is the price to buy it out in full.
People buy out the share in different ways: from savings, by remortgaging once their income has grown, or from the sale when they move. There is no deadline, but the service charge runs from year six until the share is gone.
With Help to Buy
You can use Help to Buy and the First Home Scheme together on a new build. Help to Buy goes towards your deposit. With it, the scheme's share is capped at 20%. The First Home Scheme and Help to Buy guide works through examples side by side.
How to apply
- Get approval in principle from a lender that takes part. Approval in principle is the lender's early estimate of what it may lend you.
- Apply to the scheme online with your approval, your income details and the home's details.
- The scheme checks the price against the ceiling and the share against the cap.
- Once approved, the scheme gives you an eligibility certificate.
- Your solicitor (check the Law Society's register) adds the scheme's documents to the purchase. A conveyancing solicitor handles this on every purchase.
- At closing, the scheme sends its money to your solicitor alongside the mortgage.
What to weigh up
The scheme gets you into a home you could not otherwise afford to buy now. In return, the scheme shares in any rise in value, and you pay a service charge from year six. If the home falls in value, the share falls with it.
Three questions decide it for most people. How big a share do I need? How long will it take me to buy it out? What is the service charge likely to cost from year six? The calculator answers the first.
Where this leaves you
Put your income, deposit and price into the First Home Scheme calculator to see the share you would need and whether it fits under the cap. The first-time buyer journey lays out the steps around it. When you are ready to buy, get quotes from a solicitor used to the scheme's paperwork.
Questions people ask
How does the First Home Scheme work?
You take the biggest mortgage your lender allows and put in your deposit. The scheme pays the gap between that and the price, up to 30% of the price. In return it owns that share of your home. You buy the share back later at the value of the home at that time.
Is the First Home Scheme a loan?
No. It is a share in your home, not a loan. There are no repayments and no interest. After five years you pay a yearly service charge on the share until you buy it out.
Can I use the First Home Scheme on a second-hand house?
In general, no. The scheme covers new builds in private developments, self-builds, and the Tenant Home Purchase route. A second-hand home on the open market does not qualify.
What is the First Home Scheme price limit?
It depends on the local authority. The ceilings run from €375,000 to €500,000. Dublin and Wicklow are €500,000, Cork City is €500,000 and Galway City is €475,000. The scheme reviews them twice a year.
When does the First Home Scheme end?
The scheme runs to 1 June 2027 on the last confirmed extension. It has been extended before. Check the scheme's own site for the current date.