Help to Buy and First Home Scheme Together: The Complete 2026 Guide for First-Time Buyers in Ireland

July 6, 2026

Buying a new home in Ireland can feel impossible when the mortgage approved by the bank, your savings and the price of the property do not line up.

For many first-time buyers, two government-backed supports can help close that gap:

The Help to Buy Scheme, usually called HTB
The First Home Scheme, usually called FHS

These are separate schemes, but eligible buyers can use Help to Buy and the First Home Scheme together when purchasing or building a qualifying new home.

Help to Buy can provide a tax refund of up to €30,000 towards the deposit. The First Home Scheme can then bridge part of the remaining gap between your deposit, maximum mortgage and the price of the property.

However, the two supports work in completely different ways.

Help to Buy is a refund of Income Tax and Deposit Interest Retention Tax already paid. It does not give Revenue ownership of your property and does not normally have to be repaid when all conditions are met.

The First Home Scheme is a shared-equity arrangement. In return for contributing towards the purchase or build cost, the scheme takes a percentage equity share in the home. That percentage can be bought back later, but its euro value may rise or fall as the value of the property changes.

This guide explains exactly how the two schemes work, who can qualify, how much support may be available, what happens after buying the home and what first-time buyers should consider before applying.

Information in this guide is based on the rules available in July 2026. Scheme limits, property-price ceilings and eligibility requirements can change, so applicants should verify the latest rules before signing a contract.

Can You Use Help to Buy and the First Home Scheme Together?

Yes. Eligible first-time buyers in Ireland can use the Help to Buy Scheme and the First Home Scheme together for a qualifying property.

When Help to Buy is used, the First Home Scheme can provide up to 20% of the property purchase price or eligible build cost.

Without Help to Buy, the First Home Scheme may provide up to 30%, subject to the applicant’s funding gap and all other conditions.

Using both schemes does not automatically mean that you will receive the maximum available from each one.

The amount available through Help to Buy depends partly on the Irish Income Tax and DIRT paid by the applicants during the relevant four-year period.

The First Home Scheme contribution is based on the actual gap remaining after combining:

Your deposit
Your approved Help to Buy amount
Your maximum available mortgage
Any other eligible funds
The purchase price or build cost

You cannot normally take a larger First Home Scheme share simply because the maximum percentage is available. The scheme is intended to bridge an identified affordability gap.

Help to Buy and First Home Scheme at a Glance

Feature	Help to Buy Scheme	First Home Scheme
Type of support	Tax refund	Shared-equity support
Maximum support	Up to €30,000	Up to 30%, or 20% when using HTB
Main purpose	Helps fund the deposit	Bridges the gap between deposit, mortgage and price
Property ownership given up	No	Yes, an equity percentage
Monthly repayment	No	No standard capital repayment
Charges	No interest or service charge	Service charges apply from year six
Property value limit	€500,000	Local authority price ceilings apply
First-time buyer required	Yes	First-time buyer or certain other eligible applicant
New homes	Yes	Yes
Self-builds	Yes	Yes, subject to FHS rules
Second-hand homes	Generally no	Limited qualifying circumstances, including certain tenant purchases
Main-home requirement	Yes	Yes
Can be used together?	Yes	Yes, with FHS capped at 20%

What Is the Help to Buy Scheme?

The Help to Buy Scheme is a tax-based incentive for first-time buyers purchasing or building a new home in Ireland.

It provides a refund of qualifying:

Income Tax paid in Ireland
Deposit Interest Retention Tax paid in Ireland

The refund is based on tax paid during the four tax years before the application.

For example, a person applying during 2026 may select relevant tax years from the preceding four-year period, subject to Revenue’s application rules and the applicant being fully tax compliant.

The scheme is designed to help first-time buyers fund the deposit required to purchase or self-build a qualifying home that they will occupy as their main residence.

How Much Can You Receive Through Help to Buy in 2026?

The maximum Help to Buy refund is the lowest of the following three amounts:

€30,000
10% of the purchase price or approved self-build valuation
The total qualifying Income Tax and DIRT paid during the relevant four-year period

This means that not every applicant will receive €30,000.

Example: Property costing €250,000

Ten per cent of €250,000 is €25,000.

Even if the buyer paid more than €25,000 in qualifying tax, the maximum Help to Buy amount would ordinarily be €25,000 because that is 10% of the property price.

Example: Property costing €400,000

Ten per cent of €400,000 is €40,000.

However, the overall Help to Buy cap is €30,000. Therefore, the maximum available would be €30,000, subject to the applicant having paid at least that amount in eligible tax.

Example: Limited tax paid

A buyer may be purchasing a €400,000 home but have only €18,000 of eligible tax available across the selected years.

In that situation, the maximum refund may be €18,000 rather than €30,000.

The Help to Buy amount is not an automatic grant of €30,000. It is fundamentally a refund of qualifying tax already paid.

Who Qualifies for Help to Buy?

To qualify for Help to Buy, the applicant must generally:

Be a first-time purchaser
Buy or self-build a qualifying new property
Use the property as their main home
Purchase or build a property worth no more than €500,000
Have a qualifying mortgage of at least 70% of the purchase price or approved valuation
Be tax compliant
Remain in the home as a main residence for the required period
Meet Revenue’s application and verification requirements

The current scheme applies to qualifying purchases and self-builds up to 31 December 2029, under the rules published by Revenue in 2026.

What does “first-time buyer” mean for HTB?

For Help to Buy, you must not previously have purchased or built a residential property, either:

By yourself
Jointly with another person
In Ireland
Outside Ireland

When two or more people are buying together, every buyer must qualify as a first-time purchaser for the Help to Buy claim.

Inheriting or receiving a property as a gift may be treated differently from buying or building one, depending on the exact circumstances. Applicants in that position should confirm their eligibility directly with Revenue.

What Properties Qualify for Help to Buy?

A qualifying property must generally be:

A newly built house or apartment
A qualifying self-build
Intended to become the buyer’s main home
Subject to Irish VAT during construction
Worth no more than €500,000

The property must not previously have been used, or been suitable for use, as a residential home.

A non-residential building converted into a new residential home may qualify in certain circumstances, provided all Revenue conditions are met.

Help to Buy normally does not cover:

Ordinary second-hand homes
Buy-to-let properties
Holiday homes
Investment properties
A home priced above €500,000
A property purchased without a sufficiently large qualifying mortgage

For a purchase from a developer, the developer must be registered as a qualifying contractor with Revenue. Revenue maintains an updated list of qualifying contractors.

What Is the First Home Scheme?

The First Home Scheme is a shared-equity scheme designed to bridge the gap between:

Your deposit
Your maximum available mortgage
The purchase price or qualifying build cost of your home

Instead of lending you money through a traditional monthly repayment loan, the scheme contributes funds in exchange for an equity percentage in the property.

For example, if the scheme contributes 10% of the purchase price, it generally holds a 10% equity share in the property.

The First Home Scheme is a joint initiative involving the State and participating mortgage lenders. Current participating lenders include Bank of Ireland, PTSB and the AIB Group, which includes AIB, EBS and Haven Mortgages.

Is the First Home Scheme a Loan?

The First Home Scheme describes the support as an equity facility rather than a conventional loan.

You do not make normal monthly capital-and-interest repayments in the way you would with a mortgage.

However, that does not mean the support is free money.

The scheme receives an equity percentage in your property. When you later redeem or buy back that percentage, the amount required will normally be based on the property’s value at that time.

Service charges also begin from year six if the equity share remains outstanding.

Who Can Qualify for the First Home Scheme?

To qualify, an applicant must generally:

Be at least 18 years old
Be a first-time buyer or another eligible homebuyer
Have mortgage approval from a participating lender
Borrow the maximum mortgage available from that lender, up to the applicable lending limit
Not be using a macroprudential mortgage exception
Have a minimum 10% deposit
Have an identified funding gap
Purchase or build a qualifying property
Stay within the applicable property-price ceiling
Use the home as a principal private residence

The minimum FHS equity share is generally 2.5% of the purchase price or build cost, or €10,000, whichever is higher.

Do You Need to Borrow Four Times Your Income?

First-time buyers can generally borrow up to four times their gross annual income under the Central Bank mortgage-lending framework, subject to a lender’s affordability assessment.

For the First Home Scheme, applicants are expected to borrow the maximum amount available to them from a participating lender, up to four times income.

The bank may still approve less than four times income because of factors such as:

Existing loans
Childcare expenses
Dependants
Credit commitments
Employment circumstances
Age
Mortgage term
Repayment capacity
The lender’s internal affordability assessment

The First Home Scheme does not force a bank to lend four times income when the bank considers a lower amount appropriate. However, the applicant generally cannot deliberately take a smaller mortgage merely to increase the FHS contribution.

How Much Can the First Home Scheme Provide?

The First Home Scheme may provide:

Up to 30% of the purchase price or eligible build cost when Help to Buy is not being used
Up to 20% when the applicant is using Help to Buy

The actual amount may be lower because it must reflect the applicant’s genuine funding gap.

The minimum amount is usually:

2.5% of the purchase price or build cost
Or €10,000
Whichever is higher

Example: €400,000 home without Help to Buy

The theoretical maximum FHS support could be:

30% of €400,000 = €120,000

However, the buyer would only qualify for the amount required to bridge the verified funding gap.

Example: €400,000 home with Help to Buy

The theoretical maximum FHS support would reduce to:

20% of €400,000 = €80,000

Again, this is only a maximum. The actual amount depends on the buyer’s deposit, mortgage and available funds.

How the 10% Deposit Works When Using Both Schemes

The First Home Scheme requires a minimum deposit equal to 10% of the property purchase price or eligible build cost.

Help to Buy can form part of that deposit.

For example, on a property costing €420,000:

Minimum deposit required: €42,000

The deposit could potentially be made up of:

€30,000 from Help to Buy
€12,000 from the buyer’s savings

The buyer does not necessarily need the full €42,000 in personal savings if an approved Help to Buy refund forms part of the deposit. The First Home Scheme’s own eligibility examples recognise a deposit made up of both HTB and savings.

Buyers must still budget separately for costs that Help to Buy and the First Home Scheme may not cover, including:

Booking deposit timing
Solicitor’s fees
Stamp duty
Valuation fees
Surveying or snagging
Mortgage-protection insurance
Home insurance
Management fees
Flooring
Appliances
Furniture
Moving costs

Example One: Buying a €350,000 Home With HTB and FHS

Assume a couple is buying a new house for €350,000.

They have:

Maximum mortgage approval: €280,000
Help to Buy approval: €30,000
Personal savings available for deposit: €10,000

Their available funds before FHS are:

Funding source	Amount
Mortgage	€280,000
Help to Buy	€30,000
Savings	€10,000
Total before FHS	€320,000

The remaining gap is:

€350,000 − €320,000 = €30,000

The First Home Scheme could potentially provide €30,000, subject to approval.

This represents an FHS equity share of:

€30,000 ÷ €350,000 = 8.57%

The final funding structure would be:

Funding source	Amount
Mortgage	€280,000
HTB	€30,000
Savings	€10,000
FHS	€30,000
Total	€350,000

The FHS would hold approximately 8.57% of the home.

Example Two: Buying a €420,000 Home With Both Schemes

Assume the home costs €420,000.

The buyers have:

Maximum mortgage: €336,000
Help to Buy: €30,000
Personal savings: €12,000

The minimum 10% deposit is €42,000, made up of the €30,000 HTB refund and €12,000 savings.

Funding source	Amount
Mortgage	€336,000
HTB	€30,000
Savings	€12,000
Total before FHS	€378,000

The remaining funding gap is:

€420,000 − €378,000 = €42,000

The First Home Scheme contribution could potentially be €42,000.

That would represent:

€42,000 ÷ €420,000 = 10%

The completed structure would be:

Funding source	Amount
Mortgage	€336,000
HTB	€30,000
Savings	€12,000
FHS equity	€42,000
Purchase price	€420,000

The buyer would own the home subject to the mortgage, while the FHS would hold a 10% equity interest.

Example Three: Buying a €500,000 Home

A €500,000 property is at the maximum value allowed under Help to Buy.

Suppose the buyers have:

Maximum mortgage: €400,000
HTB: €30,000
Savings: €20,000

Their total before FHS is €450,000.

The remaining gap is €50,000.

The FHS could potentially provide €50,000, representing a 10% equity share.

Funding source	Amount
Mortgage	€400,000
Help to Buy	€30,000
Savings	€20,000
First Home Scheme	€50,000
Total	€500,000

However, the property must also fall within the FHS price ceiling for its local authority area and property type.

A property can satisfy the €500,000 HTB limit but still fail the FHS price-ceiling test.

Help to Buy Limit Versus FHS Property-Price Ceiling

This is one of the most important distinctions.

Help to Buy applies to qualifying homes with a purchase price or approved valuation of no more than €500,000.

The First Home Scheme uses separate property-price ceilings based on:

Local authority area
Whether the property is a house or apartment in some areas
The current ceiling set by the scheme

The ceilings are reviewed periodically and can change.

Therefore, a €495,000 new home may qualify for Help to Buy but may not qualify for the First Home Scheme if the relevant FHS ceiling is lower than €495,000.

Applicants should check the live property-price ceiling for the exact local authority before paying a non-refundable deposit or signing a contract.

What Happens to the FHS Share if Your Home Increases in Value?

The FHS holds a percentage rather than a fixed euro balance.

Suppose you buy a home for €400,000 and the scheme contributes €40,000.

The FHS share is 10%.

If the property is later valued at €500,000, buying back the full 10% would generally cost:

10% of €500,000 = €50,000

This is before adding any unpaid service charges or applicable valuation and legal costs.

The original support was €40,000, but the redemption amount increased to €50,000 because the property increased in value.

The percentage remained the same.

What Happens if the Property Falls in Value?

The shared-equity structure can also move in the opposite direction.

Suppose the same home falls in value from €400,000 to €360,000.

A 10% equity share would then be worth:

10% of €360,000 = €36,000

Subject to the contract, valuation requirements and any outstanding charges, the redemption amount associated with the equity percentage could therefore be lower than the original €40,000 contribution.

Property prices can rise or fall. The First Home Scheme explicitly warns that changes in property value affect the euro amount required to redeem the equity share.

Do You Have to Buy Back the FHS Share?

You can normally redeem the equity share:

In full
In approved partial payments
When selling the property
Through refinancing or a mortgage top-up, where permitted
At another point allowed under the customer contract

Up to two partial redemptions are generally permitted within a 12-month period. A current property valuation will usually be needed to calculate the percentage being bought back.

The FHS share does not necessarily have to be bought back immediately. However, service charges begin in year six, and the euro cost of redemption may increase if the property rises in value.

First Home Scheme Service Charges

There is no FHS service charge during the first five years following drawdown.

From the beginning of year six, the following annual rates apply:

Period	Annual service-charge rate
Years 1–5	0%
Years 6–15	1.75%
Years 16–29	2.15%
Year 30 onward	2.85%

These rates are fixed for the lifetime of the equity facility under the current scheme terms. Service charges accrue daily and are applied monthly in arrears.

Example: €40,000 FHS contribution

If the original purchase price was €400,000 and the FHS holds 10%, the original equity amount is €40,000.

From year six, the annual charge at 1.75% would be approximately:

€40,000 × 1.75% = €700 per year

That is approximately €58.33 per month, although the exact monthly calculation can vary because charges accrue daily.

Example: €50,000 FHS contribution

For a €50,000 equity amount:

Years 6–15: €875 per year at 1.75%
Years 16–29: €1,075 per year at 2.15%
Year 30 onward: €1,425 per year at 2.85%

These illustrations assume that no part of the equity share has been redeemed.

Can You Defer the Service Charge?

The FHS may allow customers to:

Pay monthly
Pay annually
Pay a reduced amount
Defer payment until later

There is no additional charge simply for choosing deferral, but the unpaid service charge continues to accrue and must eventually be paid.

Deferring the charge does not make it disappear. It creates an outstanding amount against the equity facility.

Help to Buy Clawback Rules

Help to Buy is intended for buyers who will occupy the property as their main home.

Revenue can claw back some or all of the refund if the qualifying conditions are breached.

Potential clawback situations can include:

Failing to complete the purchase or build
Providing inaccurate information
Not using the home as required
Selling or leaving the property within the relevant five-year period
The developer or contractor failing to meet required conditions

The buyer must generally live in the property as their main home for five years after purchase or completion.

A clawback may reduce over the required occupancy period, depending on the circumstances. Buyers considering selling, renting out the property or moving away during the first five years should seek advice before taking action.

When Must the First Home Scheme Be Repaid?

Mandatory redemption can arise in circumstances set out in the FHS customer contract.

These can include:

Selling the property
The property no longer being your principal private residence
Switching the mortgage to a non-participating lender
Certain changes affecting ownership
Death of all parties to the equity facility
Other contractual events

If the home stops being your principal private residence under the scheme rules, the equity share and outstanding service charges may have to be redeemed within the period specified by the contract.

Limited exceptions may apply in particular circumstances, including certain temporary employer-required relocations.

Can You Rent Out a Home Bought Using HTB and FHS?

Both schemes are designed around owner occupation rather than investment.

Help to Buy requires the property to be occupied as the buyer’s main residence for the relevant period.

The First Home Scheme also requires the property to remain the applicant’s principal private residence, subject to limited exceptions in its contractual rules.

A buyer should not assume that they can use both schemes, move out shortly afterwards and retain the property as a standard rental investment.

Doing so may trigger:

HTB clawback
Mandatory FHS redemption
Mortgage-lender issues
Insurance problems
Tax implications

Always obtain professional advice before renting out any part or all of a property supported by these schemes.

Can You Sell the Property?

Yes, but the outstanding arrangements must be settled.

When selling a property with an FHS equity share, the share will normally be redeemed from the sale proceeds.

The amount will be based on the FHS percentage and the applicable property value, together with outstanding service charges and any other amounts due under the customer contract.

If the property increased in value, the scheme’s euro redemption amount may be greater than the original contribution.

The mortgage must also be cleared in the usual way from the sale proceeds.

Can You Switch Your Mortgage?

You may be able to switch to another participating lender while keeping the FHS equity facility, subject to the scheme and lender requirements.

If you switch to a lender that does not participate in the First Home Scheme, you will normally be required to redeem the FHS share in full, including applicable outstanding service charges.

This can reduce your mortgage-switching options.

Before accepting an FHS contribution, buyers should consider whether restrictions around future switching could affect their ability to access better mortgage rates.

Can You Use HTB and FHS for a Self-Build?

Yes, both schemes can support qualifying self-builds, subject to their separate requirements.

For Help to Buy:

The approved valuation must be €500,000 or less
The mortgage must meet the minimum loan-to-value requirement
The property must become the applicant’s main residence
Revenue’s self-build verification requirements must be completed

For the First Home Scheme:

You must have a funding gap
The build cost must remain under the relevant local price ceiling
You must have mortgage approval from a participating lender
The site and build arrangements must satisfy the FHS conditions
The minimum deposit or site-equity requirement must be met

The FHS cannot be used specifically to fund the purchase of the site. Its support relates to eligible build costs.

For self-build price-ceiling purposes, the total eligible project cost can include items such as:

Construction
Connection fees
Local authority charges
Professional fees
Other eligible completion costs

Cost overruns can create difficulties because the FHS will not automatically increase its contribution after approval. Self-builders need a realistic contingency budget.

Can Fresh Start Applicants Use Both Schemes?

The First Home Scheme is available not only to traditional first-time buyers but also to certain eligible applicants making a fresh start following circumstances such as:

Relationship breakdown
Personal insolvency
Bankruptcy

However, Help to Buy has a stricter first-time purchaser test.

A person who previously bought or built a property may qualify for the First Home Scheme under a Fresh Start category but may not qualify for Help to Buy.

Therefore, Fresh Start eligibility for FHS does not automatically create eligibility for HTB.

The two applications are assessed separately.

Step-by-Step Application Process

Using both schemes requires coordination between Revenue, the mortgage lender, the First Home Scheme, the developer and your solicitor.

Step 1: Review your finances

Calculate:

Gross household income
Maximum likely mortgage
Savings
Existing loan repayments
Childcare and regular expenses
Purchase costs
Emergency reserves
Likely Help to Buy entitlement

Do not use every euro of savings for the deposit without budgeting for legal costs, stamp duty and furnishing the home.

Step 2: Become tax compliant

Before applying for HTB, make sure that:

All required tax returns are filed
PAYE records are correct
Any underpayments are resolved
Tax clearance is in place where required

Revenue may require applicants to complete or amend previous tax-year returns before issuing an application number and access code.

Step 3: Apply for Help to Buy approval

PAYE applicants can normally apply through Revenue’s myAccount.

The application is available under the property and land services section.

Self-assessed taxpayers can use the Revenue Online Service.

Revenue will assess the selected years and issue an application number, access code and maximum available relief where the application is approved.

Step 4: Obtain mortgage approval in principle

Apply to a participating FHS lender.

The lender will assess:

Income
Employment
Savings
Debt
Repayment capacity
Credit history
Property affordability
Mortgage term

Your mortgage approval in principle is needed for the FHS application process.

Step 5: Find a qualifying property

Check that:

It is eligible for HTB
The developer is Revenue approved
The price is €500,000 or less
It falls under the relevant FHS property-price ceiling
It is a qualifying new build
It will be your main residence

Do not assume that eligibility for one scheme guarantees eligibility for the other.

Step 6: Apply for a Preliminary FHS Certificate

Once you have mortgage approval in principle, you can apply through the First Home Scheme customer portal.

A Preliminary Certificate can indicate the potential FHS contribution while you are still finalising the property and mortgage arrangements.

Step 7: Reserve the property carefully

Developers may ask for a booking deposit.

Before paying, confirm:

Whether it is refundable
The refund deadline
What happens if HTB, FHS or mortgage approval fails
Whether the property is within both scheme limits
Whether the developer is registered for HTB
When the balance of the contract deposit is due

Keep all terms in writing.

Step 8: Finalise the mortgage and FHS application

When your property, purchase price and mortgage are confirmed, the FHS can issue an Eligibility Certificate, subject to approval.

You provide that certificate to the participating lender as part of the final mortgage process.

Step 9: Appoint an experienced solicitor

Your solicitor plays an important role in:

Reviewing the purchase contract
Checking title
Verifying the HTB claim
Reviewing the FHS customer contract
Registering the relevant legal interests
Coordinating drawdown
Completing the purchase

Because the First Home Scheme involves shared equity, buyers should use a solicitor who understands the structure rather than treating it as an ordinary mortgage-only purchase.

Step 10: Complete the HTB claim

At claim stage, Revenue may require information including:

Signed purchase contract
Property details
Purchase price
Mortgage offer
Signed mortgage acceptance
Developer information
Claim verification by the developer and solicitor

The claim process differs slightly for self-builds.

Step 11: Sign the FHS customer contract

The customer contract sets out:

The equity percentage
Service charges
Redemption rules
Valuation requirements
Owner-occupation obligations
Mandatory redemption events
Rights and responsibilities

Read this contract carefully with your solicitor.

Step 12: Draw down and complete

The mortgage, HTB funds, FHS contribution and buyer’s money are coordinated through the solicitor to complete the purchase.

For self-builds, funds may be released in stages in line with the build and lender process.

What Costs Must Buyers Pay Themselves?

HTB and FHS help with the property price, but buyers still need funds for associated costs.

Stamp duty

Residential stamp duty is generally calculated separately from the deposit and purchase funding.

On a €420,000 home, stamp duty at 1% would normally be €4,200, assuming the standard rate applies to the transaction.

Solicitor’s fees

These vary according to:

The solicitor
Property type
New-build complexity
Mortgage requirements
FHS documentation
Searches and registration expenses

Valuation fee

The bank will normally require a professional valuation before releasing the mortgage.

Further valuations may be required later when redeeming the FHS equity share.

Snagging inspection

A professional snagging inspection can identify defects before closing or shortly after access is provided.

Mortgage-protection insurance

Most mortgage borrowers must have mortgage-protection cover unless a valid exemption applies.

Home insurance

The lender will usually require suitable buildings insurance from completion.

Management fees

Apartment buyers and some housing developments may have annual management charges.

Finishing the property

Many new homes may still require:

Flooring
Curtains or blinds
Appliances
Light fittings
Landscaping
Furniture
Broadband installation

A buyer who can technically complete the purchase but has no money left for these costs may face immediate financial pressure.

Advantages of Using HTB and FHS Together

A larger combined funding package

Help to Buy can help fund the deposit, while FHS can cover part of the remaining affordability gap.

Less personal savings may be needed for the deposit

An approved HTB refund can contribute to the 10% minimum deposit.

Access to a suitable new home

The combined support may help a buyer purchase a home that better meets long-term family needs.

No FHS service charge for five years

The first five years provide an opportunity to settle into the home, improve income and plan future redemptions.

Flexible FHS redemption

The buyer can generally redeem the equity gradually or in full, subject to the scheme rules.

HTB does not take an ownership percentage

When its conditions are satisfied, Help to Buy remains a tax refund rather than an equity stake.

Disadvantages and Risks

The FHS owns a percentage

The scheme’s stake is linked to the property value.

Redemption may become more expensive

If the home rises in value, the euro amount needed to buy back the percentage also rises.

Service charges begin in year six

These costs can continue for as long as the equity facility remains open.

Mortgage switching may be restricted

Switching to a non-participating lender normally requires full FHS redemption.

You still need additional cash

Neither scheme removes stamp duty, solicitor’s fees, insurance and furnishing costs.

Property choice is restricted

HTB is mainly limited to qualifying new homes under €500,000, while FHS regional price ceilings create a second limit.

Future flexibility may be reduced

Selling, renting out the property, moving abroad or changing the mortgage can trigger additional requirements.

Is It Better to Use a Larger Mortgage or the First Home Scheme?

The FHS requires applicants to take the maximum mortgage available from a participating lender, subject to the applicable rules.

Even where a buyer has a theoretical choice, the decision is not simply “mortgage versus free equity.”

A larger mortgage means:

More monthly repayments
More mortgage interest
Full ownership of any future increase in the mortgaged portion
Potentially greater switching flexibility after the fixed-rate period

An FHS contribution means:

Lower mortgage requirement than would otherwise be needed
No service charge for the first five years
A service charge from year six
Sharing a percentage of future property value
Additional redemption and switching rules

The more suitable option depends on:

Income
Monthly affordability
Expected income growth
Mortgage interest rate
FHS percentage
Length of time in the property
Plans to redeem
Expected future flexibility

An independent financial adviser can model both options.

Should You Buy Back the FHS Share Early?

There is no universal answer, but early redemption can have advantages.

Potential benefits include:

Avoiding service charges from year six
Reducing exposure to rising property values
Increasing your effective ownership
Improving future mortgage-switching flexibility
Simplifying a future sale

However, early redemption should not come at the cost of:

Having no emergency fund
Carrying expensive credit-card debt
Missing essential home repairs
Financial stress
Inadequate pension or insurance planning

A sensible strategy may be to build emergency savings first and then make planned partial redemptions, especially before year six.

A Practical Five-Year FHS Exit Strategy

A buyer using an FHS contribution could consider the following approach.

Year one

Focus on:

Settling into the home
Understanding actual household costs
Creating an emergency fund
Avoiding unnecessary new debt

Year two

Review:

Mortgage rate
Income changes
Savings capacity
Expected childcare or family costs
Property plans

Year three

Begin building a dedicated FHS redemption fund if affordable.

Year four

Ask a financial adviser or broker to compare:

Partial redemption from savings
Mortgage top-up
Full redemption through refinancing
Keeping the equity facility longer

Year five

Make a decision before service charges begin in year six.

This does not mean every buyer must redeem within five years. It means the end of the charge-free period should not arrive without a plan.

Frequently Asked Questions

Can HTB cover my full 10% deposit?

Possibly.

On a €300,000 home, 10% is €30,000. A buyer approved for the full €30,000 HTB amount could theoretically cover the complete 10% deposit through HTB.

However, separate personal funds would still be needed for stamp duty, legal fees and other costs.

Can I receive €30,000 HTB and 20% FHS automatically?

No.

€30,000 is the maximum HTB refund, subject to property value and tax paid.

Twenty per cent is the maximum FHS share when using HTB, subject to your actual funding gap and eligibility.

Does the FHS contribution count as part of the HTB mortgage requirement?

Revenue states that State shared-equity funding does not form part of the qualifying loan-to-value calculation for HTB. The qualifying mortgage itself must satisfy Revenue’s minimum requirements.

Can a single buyer apply?

Yes. Both schemes can be available to eligible single applicants.

Can couples apply?

Yes. For HTB, all purchasers must satisfy the first-time buyer requirements.

For FHS, all applicants must satisfy the relevant eligibility conditions.

Can I use the schemes for an apartment?

Yes, provided it is a qualifying property and falls within the applicable limits.

FHS ceilings for apartments may differ from house ceilings in some local authority areas.

Can I use HTB on a second-hand house?

Generally no. HTB is designed for qualifying new builds and self-builds.

Can I use FHS on a second-hand home?

The standard new-build product applies to newly built homes in private developments. The scheme also has certain other products, including qualifying tenant home purchases, subject to specific rules.

Can I use HTB and a Local Authority Affordable Purchase Scheme?

HTB can interact with qualifying affordable-purchase arrangements, but the calculations and conditions differ. The First Home Scheme and Local Authority Affordable Purchase Scheme are not interchangeable.

Applicants should obtain scheme-specific advice rather than applying the examples in this article to an affordable-purchase home.

Is HTB taxable income?

It is a refund of qualifying taxes rather than employment income. Applicants should follow Revenue’s treatment and documentation rules.

Does the bank include FHS when calculating affordability?

The lender considers the proposed FHS contribution as part of the overall purchase-funding structure. You still need mortgage approval and must pass the lender’s affordability assessment.

Can parents gift part of the deposit?

A family gift may be acceptable to the mortgage lender, subject to proof of source and confirmation that it is not repayable.

Gift-tax implications may depend on the amount and previous gifts received. Buyers should obtain tax advice where necessary.

Can I make partial FHS repayments?

Yes, subject to the scheme’s minimum redemption, valuation and timing rules. Up to two partial redemptions are generally permitted during a 12-month period.

What happens when I die?

The FHS contract contains rules dealing with death. Where there are joint applicants and one dies, the arrangement may continue with the surviving party, depending on the circumstances.

If all parties to the equity facility have died, mandatory redemption may apply. Your solicitor should explain the inheritance and estate implications.

Documents You May Need

Applicants should prepare for documents such as:

Identification
Proof of address
PPS numbers
Employment and income evidence
Bank statements
Savings evidence
Existing loan statements
Mortgage approval in principle
Final mortgage offer
Revenue HTB application number
HTB access code
Tax returns or Statements of Liability
Property reservation details
Purchase contract
Property price and address
Developer details
FHS application documents
Valuation report
Solicitor details
Self-build plans and costings, where relevant

Having these documents ready can reduce delays.

Common Mistakes to Avoid

Assuming everyone gets €30,000

The amount is limited by qualifying tax paid and 10% of the property value.

Looking only at the €500,000 HTB cap

The property must also pass the FHS regional price-ceiling test.

Reserving a property too early

Confirm mortgage, HTB and FHS feasibility before paying a non-refundable amount.

Forgetting purchase costs

A deposit is not the only money needed.

Treating FHS as free money

The scheme takes an equity percentage and applies service charges from year six.

Not planning to redeem

You do not need to redeem immediately, but you should understand the long-term cost.

Assuming future mortgage switching will be simple

A switch to a non-participating lender normally requires full FHS redemption.

Using all available support because it is offered

Taking a smaller FHS share may reduce future redemption costs and service charges.

Failing to obtain independent advice

The bank, developer and scheme each have their own role. None replaces independent legal and financial advice.

Final Verdict: Are Help to Buy and the First Home Scheme Worth Using Together?

For an eligible first-time buyer who cannot bridge the gap between a deposit, maximum mortgage and the price of a suitable new home, using Help to Buy and the First Home Scheme together can make home ownership possible.

Help to Buy is particularly valuable because it can provide up to €30,000 of previously paid tax towards the deposit without taking an ownership share in the property.

The First Home Scheme can then address the remaining affordability gap. However, it should be approached as a long-term financial commitment rather than a free grant.

The main question is not simply:

“Can these schemes help me buy the home?”

The better questions are:

What percentage will the FHS own?
What could that percentage cost in the future?
Can I buy it back before service charges become significant?
Will I still have emergency savings after completion?
Can I afford the mortgage, insurance and household expenses?
Am I comfortable with restrictions around selling, renting and switching lenders?
Is this the right home for me to keep for several years?

For many buyers, the combined schemes can be an excellent route into a new home.

For others, buying a lower-priced property, saving for longer or using a smaller FHS contribution may produce a stronger long-term financial position.

The schemes solve an immediate funding gap, but the buyer must still make sure the completed purchase is affordable after the keys are handed over.

Quick Summary

Help to Buy and the First Home Scheme can be used together in Ireland.

Help to Buy may provide up to €30,000, limited by tax paid and 10% of the property value.

The First Home Scheme may provide up to 20% when HTB is used.

HTB does not take equity in the property.

The FHS does take an equity percentage.

The FHS has no service charge for five years.

Service charges begin at 1.75% from year six.

A qualifying HTB property must cost no more than €500,000.

Separate FHS local-authority price ceilings also apply.

A minimum 10% deposit is required for FHS, but HTB can contribute towards it.

Applicants must obtain the maximum mortgage available from a participating lender.

Both schemes are primarily designed for homes that will be used as the buyer’s main residence.

Independent financial and legal advice is strongly recommended before proceeding.

Help to Buy and First Home Scheme Together: Complete Ireland Guide 2026

Learn how Help to Buy and the First Home Scheme work together in Ireland in 2026, including eligibility, maximum amounts, deposits, service charges, examples and application steps.

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