A Complete Guide to Ireland’s Help‑to‑Buy (HTB) and First Home Scheme (FHS) – How to Qualify in 2025
Introduction
Buying a first home in Ireland remains one of the biggest financial challenges for many households. Two government‑backed programmes – the Help‑to‑Buy (HTB) tax rebate and the First Home Scheme (FHS) shared‑equity fund – are designed to narrow the gap between deposit and mortgage. This guide breaks down each scheme, outlines who can apply, details the amounts you can receive, and walks you through the practical steps to secure the support you’re entitled to in 2025.
1. Help‑to‑Buy (HTB) Scheme – The Tax Rebate
1.1 What is HTB?
The HTB scheme is a tax rebate that refunds up to 10 % of the purchase price (capped at €30,000) on qualifying new‑build homes. It is aimed at first‑time buyers who have paid Income Tax, PRSI or DIRT in the previous four years.
1.2 Key Figures (2024‑2025)
| Metric | Latest figure |
|---|---|
| Maximum rebate | €30,000 (10 % of price) |
| Property price ceiling for rebate | €500,000 (any price ≤ €500k qualifies) |
| Minimum deposit required | 10 % of purchase price (plus booking deposit) |
| Annual number of claims (2023‑24) | ~ 33,000 rebates claimed, totalling €640 m |
| Extension | Enhanced HTB continues until 31 Dec 2029 |
1.3 Who Can Claim HTB?
- Age: 18 years or older.
- First‑time buyer status: Must have never owned a residential property in Ireland or abroad.
- Tax history: Paid Income Tax, PRSI or DIRT in each of the last four tax years.
- Property type: New‑build house or apartment in a private development; must be the principal private residence.
- Price limit: Purchase price ≤ €500,000.
- Mortgage criteria: Must obtain a mortgage approval of up to 4 times gross annual income (or 3.5 × for second‑time buyers, though they cannot claim HTB).
1.4 How the Rebate Is Calculated
- Determine eligible purchase price – up to €500,000.
- Calculate 10 % of that price – e.g., a €350,000 home → €35,000, but the rebate is capped at €30,000.
- Submit a claim to Revenue after the sale completes and you have a tax clearance certificate.
- Refund is paid directly to you, typically within 6‑8 weeks of claim approval.
Example – A €420,000 new build: 10 % = €42,000 → capped at €30,000. After settlement you claim the €30,000 rebate, which can be used to boost your deposit or reduce mortgage debt.
1.5 Application Process
| Step | Action | Where to Do It |
|---|---|---|
| 1 | Confirm tax‑paid status (last 4 years) | Revenue MyAccount |
| 2 | Obtain mortgage approval (≤ 4 × income) | Participating lender |
| 3 | Reserve property (booking deposit €5‑7k) | Developer/agent |
| 4 | Complete purchase and receive tax clearance | Revenue ROS |
| 5 | Fill out HTB claim form (Form HTB‑1) | Revenue website |
| 6 | Submit supporting documents (sale contract, tax clearance, mortgage approval) | Online via ROS or post |
| 7 | Receive rebate | Direct bank transfer |
2. First Home Scheme (FHS) – The Shared‑Equity Fund
2.1 What is FHS?
The First Home Scheme is a government‑backed shared‑equity loan that provides up to 30 % of the purchase price (or build cost for self‑builds). The State takes an equity share in the property, which you can buy back later. It is open to first‑time buyers and other eligible households.
2.2 Recent Developments
- Additional €100 m funding announced in 2024, raising total capital to €350 m.
- Scheme extended to 31 Dec 2027 with a further €30 m earmarked for 2025‑26.
- Service charge of 0.5 % per annum applied from year 6 (no charge in the first five years).
- Price ceilings set by local authority – average ceiling in 2025: €420,000 (varies by county).
2.3 Who Can Apply?
| Criterion | Detail |
|---|---|
| Age | 18 years or older |
| Buyer status | First‑time buyer or other eligible homebuyer (e.g., former social housing tenant, household with a member on a qualifying social rent). |
| Mortgage approval | Senior mortgage approval with a Participating Lender at up to 4 × gross income (no lower limit on household income). |
| Property type | • New‑build house/apartment in a private development or • Self‑build on a privately owned site or • Purchase of a rented property where the landlord is selling (tenant purchase). |
| Location | Property must be in the Republic of Ireland and within the local authority price ceiling for the relevant type. |
| Deposit | Minimum 10 % of purchase price (or build cost) plus any booking deposit. |
| Other | No Macro‑Prudential Exception (MPE) on the mortgage, and all applicants undergo AML, fraud and criminal‑record screening. |
2.4 How the Funding Works
| Component | Description |
|---|---|
| Equity share | The State provides up to 30 % of the purchase price (or build cost). The share is expressed as a percentage of the final property value. |
| Minimum share | 2.5 % of purchase price or €10,000, whichever is higher. |
| Interaction with HTB | If you also claim the HTB rebate, the maximum FHS share reduces to 20 % of the purchase price. |
| Redemption | You can buy back the equity share at any time (usually when you sell or refinance). The redemption amount equals the original percentage multiplied by the current market value (minus any service charges accrued). |
| Service charge | 0.5 % per annum from year 6, payable to the State. No charge in the first five years. |
| Example – Purchase price €400,000, HTB rebate claimed (€30,000). FHS can fund up to 20 % → €80,000 equity share. After 7 years the property is worth €450,000; you would need to repay 20 % of €450,000 = €90,000 plus 0.5 % × 2 years = €900 service charge. |
2.5 Application Steps
| Step | Action | Where to Do It |
|---|---|---|
| 1 | Verify eligibility (price ceiling, buyer status) | FirstHomeScheme.ie – Eligibility Calculator |
| 2 | Obtain senior mortgage approval from a Participating Lender (e.g., AIB, Bank of Ireland, KBC) | Lender’s mortgage department |
| 3 | Register on the First Home Scheme portal and submit an application | https://application.firsthomescheme.ie |
| 4 | Provide supporting documents: identity, proof of income, mortgage offer, purchase contract, planning permission (for self‑build) | Upload via portal |
| 5 | Await approval (typically 2‑3 weeks) | |
| 6 | On contract exchange, the State’s equity provider releases the agreed amount to the solicitor/solicitor’s account | Solicitor coordinates with lender |
| 7 | Complete purchase, then manage service charge from year 6 onward | Annual statements from FHS administrator |
3. Comparing HTB and FHS
| Feature | HTB (Tax Rebate) | FHS (Shared‑Equity) |
|---|---|---|
| Type of support | Refund of tax paid (cash) | Loan‑like equity share (no interest) |
| Maximum amount | €30,000 (10 % of price) | Up to 30 % of price (20 % if HTB also used) |
| Eligibility | First‑time buyers only, must have paid tax in last 4 years | First‑time buyers and other eligible households |
| Property limit | €500,000 | Local authority ceiling (average €420k in 2025) |
| Repayment | No repayment – it’s a rebate | Repay equity share on sale or redemption; service charge from year 6 |
| Impact on mortgage | Does not affect LTV; can be used as deposit | Reduces mortgage amount needed; LTV calculated on purchase price minus equity share |
| Application timeline | 6‑8 weeks after sale | 2‑3 weeks after application, funds released at exchange |
4. Recent Statistics & Impact (2024‑2025)
- HTB: Over 33,000 rebates claimed in 2023‑24, representing €640 m returned to buyers – roughly 5 % of all first‑time buyer transactions that year.
- FHS: By Q1 2025, more than 1,500 homes were bought using the scheme, with a total funding outlay of €45 m. The average equity share taken was 22 % (reflecting the HTB interaction).
- Funding boost: The 2024 budget added €100 m to the FHS, allowing an extra ~3,000 households to benefit before the 2027 deadline.
- Regional differences: Price ceilings are highest in Dublin (≈ €500k) and lowest in the Midlands (≈ €350k), influencing where the schemes are most utilised.
5. Practical Tips for Prospective Buyers
- Run the eligibility calculator early – both Revenue’s HTB tool and the First Home Scheme calculator are free and give you a realistic view of potential funding.
- Secure mortgage pre‑approval before house hunting; lenders will confirm whether you meet the 4 × income rule and whether you qualify for the FHS.
- Consider timing – HTB rebates are paid after settlement, so you may need additional cash to cover the deposit until the refund arrives.
- Plan for the service charge – factor the 0.5 % annual charge from year 6 into your long‑term budgeting.
- Check the local authority price ceiling – if your desired property exceeds the ceiling, you’ll need to look elsewhere or consider a different scheme.
- Keep documentation organised – tax clearance certificates, mortgage offers, and sale contracts are all required for both schemes.
- Seek professional advice – a solicitor familiar with the FHS and a mortgage adviser experienced in HTB can streamline the process and avoid costly errors.
6. Frequently Asked Questions
Q1: Can I use both HTB and FHS on the same purchase?
Yes. If you claim the HTB rebate, the maximum FHS equity share drops from 30 % to 20 % of the purchase price.
Q2: What if the property price exceeds the HTB ceiling but is below the FHS ceiling?
You can still apply for the FHS (up to 30 % equity) but you will not be eligible for the HTB rebate.
Q3: Is the FHS equity share ever reduced?
The percentage remains fixed (e.g., 20 % or 30 %). However, the redemption amount changes with market value, so a rise in house price increases the amount you must repay.
Q4: Do I need to repay the HTB rebate?
No. It is a tax refund, not a loan.
Q5: What happens if I sell the property before the service charge period ends?
The equity share is bought back at the sale price, and any accrued service charge is deducted from the proceeds before the seller receives the net amount.
Q6: Are there any income limits for the FHS?
No explicit household income ceiling, but you must meet the 4 × gross income mortgage approval test.
Conclusion
The Help‑to‑Buy tax rebate and the First Home Scheme shared‑equity fund together form a powerful toolkit for Irish home‑buyers in 2025. By understanding the eligibility rules, funding limits, and application timelines, you can maximise the financial assistance available and move closer to owning your first home.
Take the first step today: run the online calculators, speak to a mortgage adviser, and secure the support that could save you tens of thousands of euros on your journey to home ownership.