The Government has recently introduced a variety of new initiatives aimed at helping First Time Buyers purchase their first home and we at MRE New Homes are here to help.
In this blog, we explain the difference between the First Home Scheme and the Help to Buy Scheme and update you on the changes to the mortgage lending rules. We hope that these simplified summaries will help make things easier for you at the start of your property journey.
First Home Scheme
The First Home Scheme is a shared equity scheme delivered via a partnership between the State and participating banks to help first-time buyers (and other eligible homebuyers) bridge the gap between their deposit and mortgage, and the price of their new home.
The First Home Scheme can fund up to 30% of the market value of your new property or 20% if also availing of the Help to Buy Scheme.
Homebuyers receive funds from the scheme in return for the First Home Scheme taking a percentage ownership in the property. You do not pay any charge on the equity share for the first 5 years though a service charge will apply from year 6 onwards:
- 1.75% per annum between year 6 – 15
- 2.15% per annum between year 16 – 29
- 2.85% per annum from year 30+
The First Home Scheme applies to newly built houses or apartments only up to a certain value which currently ranges between €350,000 – €500,000, dependent on the local authority.
Check out your eligibility and apply for the First Homes Scheme here
Help to Buy Scheme
Extended to December 31 2024, the Help to Buy Scheme is a government initiative designed to help First Time Buyers raise the deposit needed to purchase a new house or apartment. Under the initiative, you can receive a tax rebate on income and deposit interest retention tax (DIRT) that you have paid over the previous 4 years up to a value of €30,000.
It is applicable on newly built properties up to a maximum value of €500,000.
Details of Help to Buy can be found here.
Are you looking to buy a home for the first time but not sure where to start? At Midlands Real Estate, we understand that the purchasing process is not always straightforward and we are here to help.
Feel free to contact us to discuss your options.
