Property
Help to Buy and the First Home Scheme: which, or both?
Last updated 16 October 2026
Help to Buy is a tax refund of up to €35,000; the First Home Scheme takes an equity share of up to 30%. Many buyers of new homes use both.
Both schemes help first-time buyers of new homes bridge the gap between their mortgage and the price. They work very differently: one is money you keep, the other is a share of your home you'll pay back one day.
| Help to Buy | First Home Scheme | |
|---|---|---|
| What it is | Refund of income tax and DIRT (tax on savings interest) | State and bank equity share |
| Most you can get | €35,000, or 10% of the price | 30% of the value; 20% with Help to Buy |
| Pay it back? | No, if you live there five years | Yes: buy the share back at the value then |
| Cost | None | None for five years, then a service charge |
| Price limit | €500,000 | By area: up to €500,000 in Dublin |
An example
A couple earning €80,000 between them have €20,000 saved and paid €40,000 of income tax over four years. They buy a new €420,000 house in Dublin in November 2026. Their lender offers the Central Bank limit: four times income.
| Price | €420,000.00 |
| Mortgage | (€320,000.00) |
| Savings | (€20,000.00) |
| Help to Buy | (€35,000.00) |
| Still needed with Help to Buy alone | €45,000.00 |
| First Home Scheme share to fill it | (€45,000.00) |
| Gap with both schemes | €0.00 |
On its own, the First Home Scheme wouldn't work for them: it needs a 10% deposit (€42,000), and their €20,000 falls short. Help to Buy counts towards that deposit. The scheme takes a share of about 10.7% of the home.
The cost of the equity share
The First Home Scheme share follows the home's value. If the house is worth more when you buy the share back, you pay more. There's no charge for the first five years. After that, according to Citizens Information, the yearly service charge is a percentage of the original amount: 1.75% for years 6 to 15, 2.15% for years 16 to 29 and 2.85% from year 30. On €45,000, that is €787.50 a year from year six. You can buy back the share in part or in full at any time; you must do so if you sell or let the home.
Conditions they share
- a newly built home (or a self-build) that you will live in
- first-time buyers; the First Home Scheme also accepts some "fresh start" applicants
- a mortgage from a participating lender; for the First Home Scheme, the most you can borrow without a lender exception
Work it out
Sources
- Revenue: Help to Buy: how much can you claim? (€35,000 from 7 October 2026) (checked 25/10/2026)
- Citizens Information: First Home Scheme (price limits, 30% / 20% equity, service charges) (checked 25/10/2026)
- Central Bank of Ireland: Mortgage measures (loan-to-income 4x / 3.5x, deposits 10% / 30%) (checked 24/10/2026)
- Citizens Information: Budget 2027 (checked 25/10/2026)
General information, not tax advice. HeyPenny is not a tax agent.