Sarah Connelly never thought she would own a home in Dublin. Like thousands of young Irish professionals, she spent years in the rental loop. She paid €1,850 monthly for a modest apartment. Each year, the rent continued to climb. Meanwhile, house prices rose faster than her salary could afford. That changed when she discovered the First Home Scheme Ireland. It is a shared equity program. They helped bridge the €50,000 gap between her mortgage approval and the home she wanted in Lucan.

“It was not a handout,” she said. “For the first time, the system felt like it was on my side.”

Ireland’s housing market continues to strain under growing demand. For first-time buyers, the scheme is shifting what’s possible.

Here is how it works, and why it matters.

 

What Is the First Home Scheme Ireland?

The First Home Scheme Ireland was launched on 7 July 2022. It is a government-supported initiative. It is designed to assist first-time buyers in purchasing newly built homes.

The scheme provides up to 30% of the home’s value (20% if combined with the Help to Buy scheme) through a shared equity model.

It means the government becomes a co-investor, supporting buyers by bridging the affordability gap between their mortgage approval and the actual home price.

For example, if approved for €300,000, that might not be enough. In that case, the scheme can cover the €75,000 difference.

Importantly, there are no interest payments or service charges for the first five years. As a result, buyers have time to build financial stability.

Related – Relocating to Ireland from the US made simple with these expert tips

 

How Is the First Home Scheme Ireland Helping First-Time Buyers Succeed?

Since its launch, the scheme has helped thousands of people. As a result, many now own their first home. According to the Roscommon Herald, over 7,600 buyers have been approved under the First Home Scheme, reflecting its rapid growth and strong uptake.

A large portion of recipients are single-income buyers who might have otherwise continued renting indefinitely.

Take Rachel Murphy, a tech professional in Cork, who purchased her first home in Carrigaline after combining the scheme with the Help to Buy rebate.

“It finally allowed me to stop renting and start investing in my future,” she said.

Additionally, the scheme supports regional growth. In Dublin and Galway, buyers are now finding new builds. These, in turn, match their income and lifestyle. As a result, they can remain close to jobs, family, and established communities.

 

Why Is the First Home Scheme Ireland Considered a Game-Changer?

The First Home Scheme Ireland is more than just financial assistance. It represents a shift in how the country supports working individuals and families.

For many buyers, the scheme offers three key benefits –

• Affordability – Covers the gap, allowing buyers to avoid overextending themselves.
• Stability – Offers long-term housing security over rising rents.
• Confidence – Builds financial footing and local roots.

 

Besides, the program works in conjunction with the Help to Buy scheme. It lets buyers use both. Together, they boost support and cut barriers.

 

How Do Buyers Repay and Is It Worth the Cost?

The repayment options are flexible. Homeowners may choose to repay the government equity at any time, either through lump sums or in full when they sell the property. There’s no obligation to repay early, and no interest accrues, just a gradually increasing annual service fee from year six onward.

For example, if you receive a €50,000 stake on a €350,000 home (about 14%) and later sell it for €420,000, then you must repay the government approximately €70,000. Typically, you pay this amount from the sale proceeds unless, of course, you’ve already repaid it.

For many, the trade-off is clear. As a result, they can stop renting, begin building equity, and finally enter a market that once excluded them.

“It gave me breathing room,” said Sarah Connelly. “After all, I’d rather repay a shared equity. Besides, spending another decade paying someone else’s mortgage never made sense to me.”

 

What Types of Homes Qualify Under the First Home Scheme in Ireland?

The scheme applies explicitly to newly built properties across the Republic of Ireland. Moreover, regional price caps ensure the program remains relevant to local housing markets.

• Dublin – up to €500,000
• Cork and Galway cities – up to €475,000
• Limerick – up to €425,000
• The rest of Ireland – up to €325,000

 

Homes must be newly constructed and serve as the buyer’s primary residence. In turn, this helps direct support to owner-occupiers and aligns the housing supply with community growth.

Also read – The True Cost of Renting vs Owning a Home

 

Who Can Qualify for the First Home Scheme in Ireland?

The scheme is available to –

• First-time buyers who have never owned property before
• Individuals who no longer have an interest in a previous home due to separation or divorce
• Irish citizens or those with a right to reside in Ireland who meet the mortgage and deposit requirements

 

Applicants must have mortgage approval from a participating bank and contribute their full borrowing capacity before seeking shared equity assistance.

“At first, I thought being single would make buying a home impossible,” said Ciara D., a primary teacher in Kildare. “However, the First Home Scheme gave me a real chance to own my space.”

 

How Can You Apply for the First Home Scheme in Ireland

The application process is clear and easy to follow. It begins with mortgage approval from a participating lender such as Bank of Ireland, AIB, or Permanent TSB.

Next, apply for up to 30% of the home price. With Help to Buy, the maximum loan-to-value (LTV) ratio is 20%. It covers the gap between your mortgage and the home cost. Apply now through the official First Home Scheme site.

Importantly, from year six, a small annual service fee begins. However, repayment is flexible. You can repay the equity at any time or when you sell the home.

As a result, buyers gain more time to settle in and plan financially while enjoying the benefits of owning their own home.

Besides, the Ireland Free Relocate Program supports moves to rural areas. It offers grants to eligible professionals. Paired with the First Home Scheme Ireland, it further reduces relocation costs.

 

Is the First Home Scheme in Ireland Helping Buyers Compete?

For Rachel Murphy, a 29-year-old tech analyst in Cork, the answer is yes. Initially, she was outbid on multiple homes despite having €35,000 saved and a substantial income. However, when she combined the Help to Buy rebate with the FHS equity contribution, she finally secured a €395,000 home in Carrigaline.

“Without it, I’d still be writing rent checks and checking listings every night,” she said.

Industry data supports stories like Rachel’s. Since the scheme’s launch –

• 60% of recipients were single applicants
• The average equity stake is 17.6%
• Dublin, Meath, and Kildare top the list for scheme applications.

 

Yet, experts continue to express concern. Specifically, the FHS only applies to new builds. In contrast, second-hand homes are excluded. Notably, these make up most of the rural market. As a result, some say the scheme is limited. It does not reach all areas, especially those with low construction.

Recommended read – Renting vs. Buying: Making the Right Decision in a New Location

 

How Will the First Home Scheme Shape Ireland’s Housing Future?

The future is strong. It comes from rising awareness and continued support.

Ireland’s Housing Minister has announced a €30 million boost to the First Home Scheme. The scheme will now run through 2027. According to LexisNexis, the extension is confirmed beyond 2026.

For now, it remains, still, a cornerstone of support. In turn, helping first-time buyers and ultimately, encouraging sustainable homeownership.

 

From First Job to First Home in Ireland, We Help Both

Relo.AI provides personalised relocation support to individuals with confirmed job offers in Ireland, tailored to your budget and timeline.

If you are considering using the First Home Scheme Ireland or planning to purchase your first property, we can help you align housing choices with your career, financial goals, and lifestyle needs.

First, we assess your eligibility for the First Home Scheme and other supports. Then, we help choose the right area based on your job and budget. Next, we guide you through legal steps and local processes. Finally, we provide ongoing support to ensure a smooth and informed move.

Our step-by-step process makes your move easy. It begins with your job offer.

Do you have a confirmed job in Ireland?

If yes, it’s time to plan your move. Book a FREE session with us now.

 

Is the First Home Scheme Ireland Creating Real Opportunity?

Yes, and the difference is backed by both statistics and satisfied homeowners.

From Dublin to Limerick, from solo professionals to growing families. The First Home Scheme Ireland is helping people transition from renting to owning. By making homeownership more affordable and supporting the building of new homes. They are offering structured support. The scheme is reshaping what it means to own a home in Ireland.

For many, this is a matter of principle. It marks the beginning of a more stable and empowered life.