What is the First Home Scheme in Ireland?

The First Home Scheme (FHS) is a shared equity scheme where the government takes a stake of up to 30% in your new home in exchange for reducing the mortgage you need. You own 100% of the legal title from day one and live in the property as your main home. The government holds a financial charge (equity stake) on the property in proportion to its contribution. You can buy out the government's share at any time, in full or in stages. From year 6 onward, an annual service charge applies if you have not started buying out the equity.

Who qualifies for the First Home Scheme in 2026?

To qualify: you must be a first-time buyer (or qualifying fresh start applicant); the property must be a new build (not second-hand); the property price must be within the regional price ceiling for your area; you must have mortgage approval from a participating lender; the property must be your principal private residence; and the FHS equity required must be between 2.5% and 30% of the purchase price. There are no income limits for the First Home Scheme itself, but your mortgage approval capacity determines how much FHS equity you need.

What are the First Home Scheme property price ceilings in 2026?

Price ceilings vary by region. In 2026: Dublin City, Dún Laoghaire-Rathdown, South Dublin, Fingal, Wicklow, Kildare, Meath: €500,000. Cork City and Galway City: €450,000. All other counties: €400,000. These ceilings are reviewed annually. The FHS can only be used for properties at or below the ceiling for the region where the property is located.

How does the FHS equity share work in practice?

The government takes a percentage equity stake equal to its contribution divided by the property price. For example, if your property costs €350,000 and the FHS contributes €52,500 (15%), the government holds a 15% equity stake. When you sell (or buy out the stake), the government receives 15% of the sale price at that time — not the original €52,500. If the property has increased in value, the government's share increases too. If it has decreased, the government's share decreases too.

When does the FHS service charge start?

The annual service charge on the government's equity stake starts from year 6 of the FHS arrangement. In years 1-5, there is no service charge. From year 6, the charge is up to 1.75% per year on the outstanding equity share. So if the government holds a 15% stake on a €350,000 property (€52,500 in equity), the year 6 service charge would be approximately €919/year (1.75% × €52,500). To avoid or reduce this charge, you can start buying back equity any time.

Can I use the First Home Scheme with Help to Buy and the Local Authority Home Loan?

Yes. The FHS can be combined with: Help to Buy (up to €30,000 Revenue tax refund for new builds — using HTB reduces the FHS equity needed and therefore reduces the eventual service charge); Local Authority Home Loan (government-backed fixed-rate mortgage for buyers refused by commercial banks). When combining HTB + FHS, the combined equity (FHS share + HTB) is capped at 30% of the property price.

How do I buy out the government's equity share?

You can buy back the government's equity stake at any time, in full or in stages (minimum 5% redemption per transaction). You pay the redemption amount based on the current market value of the property at the time of the buyout — not the original FHS contribution. A property valuation is required. Apply through the FHS portal at firsthomescheme.ie. You can buy out the full equity at any point, including on sale of the property.

What happens when I sell a property with an FHS equity stake?

When you sell the property, the government's equity stake is redeemed from the sale proceeds at the current sale price. So if the government held a 15% stake and you sell for €420,000, the government receives €63,000 (15% of €420,000). Your solicitor coordinates the redemption with the FHS administrator. The remainder after mortgage redemption and FHS redemption is yours.

Are there income limits for the First Home Scheme?

There are no fixed income limits for the FHS itself. However, your ability to use the scheme is determined by the gap between what you can borrow from a commercial lender and the property price. If your income is very high and you can borrow the full purchase price yourself, the FHS may not contribute the minimum 2.5%. In practice, the FHS is most valuable for buyers with moderate incomes who can borrow 3-3.5× their income but cannot reach the full purchase price.

How do I apply for the First Home Scheme?

Apply online at firsthomescheme.ie. You need: mortgage approval in principle from a participating lender (showing the amount offered); a booking deposit paid on a qualifying new-build property; your PPS number. The FHS administrator (operated by the Housing Finance Agency) processes applications. Your lender and the FHS coordinate directly. Applications typically take 2-4 weeks after all documents are received.

First Home Scheme 2026 — Government shared equity for new builds

First Home Scheme in Ireland 2026

The First Home Scheme lets the government take up to 30% equity in your new home so you need a smaller mortgage. No income limit. New builds only. Property price ceilings apply by region. You get 5 years charge-free — then 1.75%/year on the government’s share from year 6. You can buy back the equity any time. This is the complete 2026 guide with worked calculations and exit scenarios.

Reading time: 7 minutesLast updated: June 24, 2026

First Home Scheme 2026 — Key figures

Maximum equity stake: 30% of purchase price
With Help to Buy combined: Max 30% combined (FHS + HTB)
Property type: New build only
Income limit: None
Service charge starts: Year 6 (1.75%/year)
Buyout: Any time, in full or stages

Regional property price ceilings

Region	Max property price	Counties included
Dublin & commuter belt	€500,000	Dublin City, Dún Laoghaire-Rathdown, South Dublin, Fingal, Wicklow, Kildare, Meath
Cork and Galway cities	€450,000	Cork City, Galway City
All other areas	€400,000	All other counties nationwide

How the equity calculation works

The FHS equity stake is the gap between: (a) what you can borrow (your mortgage) + (b) your deposit + (c) Help to Buy — and the full purchase price. The FHS fills the gap, up to 30% of the price.

FHS equity = Purchase price − (Mortgage + Deposit + Help to Buy)

Result must be between 2.5% and 30% of purchase price to qualify.

Worked examples

Example 1 — €350,000 new build, single buyer, with Help to Buy

Property price: €350,000
Help to Buy: €30,000 (maximum)
Mortgage (3.5× income, €55,000 salary): €192,500
Savings: €17,500 (5%)
Total available: €240,000
Gap (FHS equity needed): €350,000 − €240,000 = €110,000
FHS equity %: €110,000 ÷ €350,000 = 31.4% — just over the 30% max
Solution: increase savings by €5,000 to reduce FHS to 30%

With €22,500 savings + €30,000 HTB + €192,500 mortgage + €105,000 FHS (30%) = €350,000.

Example 2 — €400,000 new build, couple, no Help to Buy

Property price: €400,000
Combined salary: €90,000
Maximum mortgage (3.5×): €315,000
Savings: €40,000 (10%)
Total available: €355,000
Gap: €400,000 − €355,000 = €45,000
FHS equity %: €45,000 ÷ €400,000 = 11.25%
Year 6 service charge: 1.75% × €45,000 = €787.50/year

Example 3 — Exit scenario: selling after 8 years

Original purchase price: €350,000
FHS equity stake: 15% (€52,500 at purchase)
Sale price 8 years later: €420,000
FHS redemption at sale: 15% × €420,000 = €63,000
Mortgage balance at sale: €240,000 (estimated)
Sale proceeds to owner: €420,000 − €63,000 − €240,000 = €117,000

The government’s stake grew from €52,500 to €63,000 because the property appreciated. The owner captures the remaining equity growth (€117,000).

Example 4 — Buying back the equity stake (partial redemption)

Original FHS stake: 20% on €400,000 property (€80,000 at purchase)
After 6 years, property value rises to €450,000
Government’s 20% stake is now: 20% × €450,000 = €90,000
Service charge on €80,000 (year 6): 1.75% = €1,400/year
Partial redemption: buy back 10% → pay 10% × €450,000 = €45,000
After redemption, FHS stake: 10% → service charge halved to €700/year

Application walkthrough

Get mortgage approval in principle
Apply to a participating lender (check firsthomescheme.ie for the list of participating banks). Get a mortgage approval in principle letter showing the maximum loan they will offer. This determines how much FHS equity you need.
Find a qualifying new-build property
The property must be a new build, must be your principal private residence, and must be within the regional price ceiling for the area. Pay a booking deposit once you identify the property.
Apply at firsthomescheme.ie
Submit your application online. You will need your mortgage approval in principle letter, confirmation of your booking deposit paid, and details of any Help to Buy approval. The FHS administrator processes the application.
FHS approval issued
The FHS administrator issues approval, specifying the equity percentage. Your lender and the FHS coordinate on the drawdown. Legal completion proceeds with the FHS funds paid alongside your mortgage.
Register the equity charge
The FHS equity charge is registered on your property’s title. This does not affect your ability to live in, rent (with restrictions) or improve the property, but it must be redeemed on any sale or remortgage that does not include the FHS.

Frequently asked questions

Common misunderstandings about the First Home Scheme

The FHS is not a grant — it is an equity stake that must be repaid (at current market value) when you sell or buy it back.
The property must be a new build — the FHS does not apply to second-hand properties.
Service charge only starts in year 6 — the first 5 years are completely charge-free.
There is no income limit for the FHS itself — eligibility depends on the gap between your mortgage capacity and the purchase price.
When combined with Help to Buy, the total FHS + HTB is capped at 30% of the purchase price, not 30% FHS + full HTB separately.
The government’s equity share moves with property values — on a rising market, you repay more than the original equity amount when you buy it back.

Official sources

This page was reviewed against official firsthomescheme.ie and Gov.ie guidance. FHS 2026: up to 30% equity stake, new builds only, no income limit, 5 charge-free years then 1.75%/year service charge, apply at firsthomescheme.ie.

Information Accuracy — This guide has been independently researched and reviewed using official Irish government sources available on the publication date. Government schemes, payment rates, eligibility rules and legislation may change over time. Before making financial, legal or welfare decisions, always confirm the latest information directly with the relevant Irish authority.

Reviewed by

Vitor Alves

Founder of D’Emilia Accounting

Founder of D’Emilia Accounting, helping immigrants navigate Irish tax and benefits.

Last reviewed: June 24, 2026 · About this site