Help Me Get On The Housing Ladder!
In today’s pricey economy, saving for a deposit can be the toughest part of buying a home. Especially when most of your income goes into rent and monthly bills.
While having a big deposit improves your chances of a good mortgage deal with low interest rates and a bigger house, Midlands Real Estate understands how hard it is to gather these funds. But don’t worry – there are options for those with smaller deposits, and the government is here to help get you on the housing ladder.
On their initial home purchase, most first-time buyers typically contribute a 10% deposit, potentially amounting to a challenging €30,000 or more (based on a €300,000 property). Nevertheless, several government initiatives exist to assist first-time buyers in entering the property market. These initiatives encompass programs such as the Help to Buy and First Home Shared Equity Scheme.
Although the Help to buy scheme only applies to new build properties, with the purchase price of less than €500,000 and has a maximum amount of €30,000 that you can claim (please see more information about the scheme on the Citizens information website or contact me to this discuss this further), you can avail of this scheme and not need to provide a deposit.
Suppose you’re purchasing a newly constructed property valued at €300,000. If you’ve secured a mortgage approval of €270,000 and also meet the criteria for the complete €30,000 Help to Buy funds, the €30,000 would act as the necessary deposit to finalize the property purchase. Consequently, with the Help to Buy scheme covering this amount, there wouldn’t be a requirement to provide the traditional 10% deposit.
The first home scheme on the other hand can assist in buying both new builds and second-hand properties. For tenants looking to buy their current home from their landlords, they would be able to avail of the first home scheme.
The Government of Ireland in partnership with Participating Lenders such as AIB, Bank of Ireland, EBS, Haven & Permanent TSB, has introduced this Scheme to help people get on the property ladder by bridging the gap between the deposit, mortgage, and the price of the property. For more information about the scheme please contact us or go to the First Home Scheme website. The First Home Scheme has the potential to approve higher amounts compared to the Help to Buy scheme. The maximum sum available varies based on your county but is capped at 30% of the property’s purchase price. While this scheme mandates a minimum 10% deposit, it offers flexibility, allowing you to use both the Help to Buy and First Home Scheme if you lack a deposit.
For example, if you are buying a new build property of €390,000 in Tullamore, Co. Offaly and have been approved for a mortgage of €290,000 by one of the scheme’s participating lenders and also qualify for help to buy of €30,000 and FHS of €70,000. Both the Help to buy and FHS can make up the deposit needed to buy the property.
If you’re short on the deposit, don’t worry—there are options available through these schemes for first-time buyers. Some conditions apply to specific schemes but never the less they offer you a great chance to get your forever home. In navigating the complexities of property ownership, Midlands Real Estate stands as your trusted advisor.
With our expertise and commitment to your home ownership journey, we are happy to offer invaluable guidance and support.
Whether it’s understanding government schemes or finding the best path to secure your dream home, count on Midlands Real Estate for reliable advice every step of the way.
Contact us today to embark on your home ownership with confidence and trust in our dedicated services.
