Applications being accepted for First Home Scheme; Apply now!

DUBLIN: Many doubted whether the government’s first home scheme was scrapped, but the housing department clarified that the scheme is still in place. Applications for the scheme have been accepted since July.

What is the scheme?

The First Home Scheme is a new government scheme set up to make it easier for first-time buyers to build a new home in Ireland. The government takes 30% stake in the scheme. The scheme will last till 2025 and the department has hinted that it may be extended.

Who can apply? How many euros will you get?

This scheme is for those who have not previously bought or built a home in Ireland.

A person with an annual income of €70,000 can borrow up to three and a half times that income (€245,000). The scheme will help them buy a property worth up to a maximum of €350,000.

For that, the buyer should have a fixed ten percent (€35000) deposit. Even after combining the deposit and the allowable loan amount (245,000 euros), only 280,000 euros are available. There is still a €70,000 gap to buy a house/apartment worth €3.5 lakh, which is met by the government’s share.

Allied Irish Banks (including AIB, Haven Mortgages and EBS), Bank of Ireland Group plc and Permanent TSB are already involved in the project.

The scheme also provides for sale of the home purchased by managing the outstanding mortgage.

If the financial condition of the buyer improves, there will be an opportunity to acquire the house by waiving the government share in a maximum of two installments in a year. The First Home Scheme also offers no further payments if the equity stake is purchased within the first five years of ownership.