Chapter 2 of 10 · Schemes and grants · 7 of 14
The First Home Scheme and Help to Buy: using both together
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
Using Help to Buy and the First Home Scheme together: the 20% cap, worked examples, which to apply for first and how they change your mortgage.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
Help to Buy and the First Home Scheme are the two main supports for a first-time buyer of a new home. You can use both on the same purchase. They do different jobs, and together they change what you can afford.
This guide puts them side by side, works through the numbers, and explains the order to apply in. The First Home Scheme calculator does the sums for your own case.
The two schemes in one table
| Help to Buy | First Home Scheme | |
|---|---|---|
| What it is | A refund of tax you paid | A share of your home in return for money |
| Who runs it | Revenue | First Home Scheme DAC, with the State and lenders |
| How much | Up to €30,000 (€35,000 announced for 2027) and 10% of the price | Up to 30% of the price (20% with Help to Buy) |
| Where it goes | To the builder as part of your deposit | To your solicitor at closing, towards the price |
| Do you pay it back | Only if you leave within five years | Yes, at the value then, whenever you buy it out |
| Yearly cost | None | A service charge from year six |
| Homes | New build or self-build, up to €500,000 | New build, self-build or Tenant Home Purchase, within the county ceiling |
The €35,000 Help to Buy figure is a Budget 2027 announcement. It is not law until the Finance Act 2026 is signed. The changes page tracks it.
A worked example with both
Laura earns €72,000. She is buying a new house in Cork County for €400,000. The Cork County ceiling is €450,000, so the home qualifies for the First Home Scheme.
She has €20,000 saved. She paid €30,000 in income tax over the last four years.
Help to Buy first. The refund is the lowest of the cap (€30,000), 10% of the price (€40,000) and her tax paid (€30,000). Her refund is €30,000.
Her mortgage. A first-time buyer can borrow up to 4 times gross income. 4 times €72,000 is €288,000. That is 72% of the price, so it clears the 70% rule for Help to Buy.
The gap.
| Item | Amount | Share of the price |
|---|---|---|
| Price | €400,000 | 100% |
| Mortgage, 4 times income | €288,000 | 72% |
| Her savings | €20,000 | 5% |
| Help to Buy | €30,000 | 7.5% |
| Gap for the First Home Scheme | €62,000 | 15.5% |
The scheme funds €62,000 and takes a 15.5% share. That is under the 20% cap that applies with Help to Buy. Laura buys the home.
The same example without Help to Buy
Suppose Laura could not use Help to Buy, perhaps because the builder is not a qualifying contractor.
| Item | Amount | Share of the price |
|---|---|---|
| Price | €400,000 | 100% |
| Mortgage, 4 times income | €288,000 | 72% |
| Her savings | €20,000 | 5% |
| Gap for the First Home Scheme | €92,000 | 23% |
The scheme can fund up to 30% without Help to Buy, so 23% fits. Laura still buys. But the scheme now owns 23% of her home instead of 15.5%. When she buys the share out, she pays 23% of the value then, not 15.5%.
That is the main difference. Help to Buy money is yours to keep after five years. Scheme money is a share you buy back at the value of the home at that time.
Why the cap is 20% with Help to Buy
Help to Buy needs a mortgage of at least 70% of the price. The Central Bank's rules need a deposit of at least 10%. Add those together and 80% of the price is covered before the scheme. The most that can be left is 20%.
So the 20% cap is not a penalty. It is the arithmetic. If your gap with Help to Buy is above 20%, your mortgage is below 70%, and Help to Buy is not available anyway.
When Help to Buy is not available
Here is a case where the 70% rule bites. Mark earns €65,000 and wants the same €400,000 house. 4 times his income is €260,000, which is 65% of the price. That is below 70%, so he cannot use Help to Buy at all.
Without Help to Buy, the scheme's cap is 30%. Mark has €40,000 saved, which is the 10% deposit.
| Item | Amount | Share of the price |
|---|---|---|
| Price | €400,000 | 100% |
| Mortgage, 4 times income | €260,000 | 65% |
| His savings | €40,000 | 10% |
| Gap for the First Home Scheme | €100,000 | 25% |
25% is under 30%. The scheme can fund the gap. Mark buys without Help to Buy, with a 25% share held by the scheme.
How the two change your mortgage
Neither scheme raises the amount you can borrow. Your income sets that, at 4 times gross income for a first-time buyer. What the schemes change is the price you can reach with that mortgage.
- Help to Buy adds to your deposit. A bigger deposit plus the same mortgage reaches a higher price.
- The First Home Scheme adds a third source of money on top of the mortgage and the deposit.
The scheme also requires you to take the biggest mortgage your lender allows. You cannot borrow less and let the scheme fill more. The Help to Buy guide and the First Home Scheme guide each explain their own rules in full.
Which to apply for first
The order most people follow:
- Help to Buy application on Revenue's site. This gives you an application summary with your refund figure. You can do it before you find a home.
- Mortgage approval in principle from a lender that takes part in the First Home Scheme. Approval in principle is the lender's early estimate of what it may lend. A broker (on the Central Bank's register) or a mortgage advisor can help you choose a lender that takes part.
- First Home Scheme application, with your approval in principle, your deposit and your Help to Buy figure. The scheme works out the share.
- Help to Buy claim after you sign contracts. Revenue pays the builder.
- Closing, when the mortgage and the scheme's money both go to your solicitor.
Doing Help to Buy first matters because the scheme needs to know your deposit, and Help to Buy is part of it.
What each costs you later
Help to Buy costs nothing later, as long as you live in the home for five years. Leave early and Revenue claws back a share, as the clawback guide explains.
The First Home Scheme costs a service charge from year six on the share, and the share itself when you buy it out. If the home has risen in value, the share has risen with it. If the home has fallen, the share has fallen.
Where this leaves you
Run your own numbers on the First Home Scheme calculator with and without Help to Buy, and see which cap applies. The first-time buyer journey puts the applications in order. When you have a home in sight, get quotes from a solicitor who handles both schemes.
Questions people ask
Can you use Help to Buy and the First Home Scheme together?
Yes, on a new build or a self-build. Help to Buy goes towards your deposit. The First Home Scheme fills the gap between your mortgage and the price, capped at 20% of the price when Help to Buy is used too.
Why is the First Home Scheme capped at 20% with Help to Buy?
Help to Buy needs a mortgage of at least 70% of the price. The Central Bank rules need a deposit of at least 10%. That leaves at most 20% for the scheme to fill. The cap matches the arithmetic.
Which should I apply for first, Help to Buy or the First Home Scheme?
Most people apply for Help to Buy first, because Revenue's application summary tells you the deposit you can count on. Then you get mortgage approval in principle, and then you apply to the First Home Scheme with both figures.
Does the First Home Scheme reduce my mortgage?
No. The scheme requires you to take the biggest mortgage your lender allows under the Central Bank's limits. It fills what is left after that mortgage and your deposit. It does not let you borrow less than you could.
Is Help to Buy better than the First Home Scheme?
They do different jobs. Help to Buy is a tax refund you keep if you stay five years. The First Home Scheme is a share of your home that you buy back later at the value then. Many buyers use both; the examples on this page show how the numbers fall.