Ireland First Home Scheme 2025 — Equity Participation

What the scheme actually is

The First Home Scheme (FHS) is a shared-equity scheme, run by First Home Scheme Ireland DAC — a company set up jointly by the State and the participating retail banks (AIB, Bank of Ireland and permanent tsb). Rather than lending you money, FHS buys a percentage stake in your home alongside your mortgage and deposit. You do not pay interest on that stake, but you do not fully own the home either until you buy the share back.

How much equity, and the floor and ceiling on it

FHS can fund up to 30% of the purchase price of a new home or the build cost of a self-build. If you are also using the Help to Buy incentive, the FHS share is capped at 20% instead, because the two schemes are not meant to be stacked to their individual maximums. At the other end, FHS will not take a stake smaller than 2.5% of the price, or €10,000, whichever is higher — below that it is not worth the administrative overhead for either side.

You must still find a minimum 10% deposit yourself (equity in your own site can count towards this for a self-build), and mortgage plus FHS equity plus deposit must together cover the full price.

Price ceilings — regional and reviewed periodically

FHS only applies to homes priced under a regional ceiling, which is reviewed roughly every six months and varies by local authority area — for example, higher in Dublin than in many rural counties. Because these ceilings move, check the current figure for your specific county on the scheme's own "Property Price Ceilings" page before assuming a property qualifies; a figure quoted a year ago may already be out of date.

The service charge and buying back the share

For the first five years, there is no charge on the FHS equity share at all. From the sixth year onward, if you have not bought back the share, a service charge begins to apply to the outstanding equity. You can redeem the share in full in one payment, or partially — the minimum partial payment is 5% of the original equity amount, and you are limited to two partial redemptions per year.

The euro amount you owe to redeem the share is not fixed — the percentage is. If your home rises in value, buying back a 20% stake costs 20% of the new, higher value; if it falls, it costs 20% of the lower value. This is the central trade-off of the scheme: the equity partner shares in both the upside and the downside of the property, unlike an ordinary loan where the amount owed does not move with house prices.

Worked example

A first-time buyer purchases a new-build apartment for €350,000, using a 10% deposit (€35,000), a 20% FHS equity share (€70,000) because they are also claiming Help to Buy, and a mortgage for the remaining 70% (€245,000).

• Year 1–5: no charge on the €70,000 FHS stake.
• Year 8, property now valued at €400,000: buying back the full FHS share costs 20% of €400,000 = €80,000, plus accrued service charges since year six, even though the original equity contribution was €70,000.
• Had the property instead fallen to €300,000, the buy-back cost would be 20% of €300,000 = €60,000 — less than was originally received.

FAQ

Q: Can I choose to pay back less than the full share? A: Yes, in instalments of at least 5% of the original equity amount, with a maximum of two partial redemptions in any calendar year.

Q: Does FHS charge interest? A: No. There is no interest and no charge at all for the first five years; from year six a service charge applies to whatever equity share remains outstanding.

Q: Can I use FHS and Help to Buy together at their full amounts? A: No. Using Help to Buy caps the FHS contribution at 20% of the price instead of the usual 30% maximum.

Sources

Figures verified against the scheme's own published terms as of 30 July 2026:

• First Home Scheme Ireland DAC — "About the Scheme" (30%/20% equity caps, 2.5%/€10,000 minimum share, 10% minimum deposit, service charge from year six, partial-redemption rules)
• First Home Scheme Ireland DAC — "Property Price Ceilings" (regional ceilings, reviewed periodically — check the current figure for your county rather than relying on a past figure)
• Citizens Information — "First Home Scheme" (scheme structure and eligibility overview)