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Saving a deposit is one of the biggest challenges facing first-time buyers in Ireland. Between rising property prices and everyday living expenses, it can take years to save enough money to buy a home.
The good news is that the government offers support through the Help to Buy Scheme in Ireland. This scheme is designed to help first-time buyers purchase or build a home sooner by providing money towards their deposit.
This guide explains how the Help to Buy Scheme works, who qualifies, how much support is available, and how much you could receive.
What Is The Help To Buy Scheme?
The Help to Buy Scheme (HTB) is government support designed to help first-time buyers purchase or build a new home.
Essentially:
The government may give you money towards your deposit.
If you qualify, the government can refund some of the tax you have paid in recent years. That refund can then be used towards the deposit on your home.
The scheme was introduced to make home ownership more accessible for first-time buyers who may struggle to save a large deposit.
Many people searching for:
- First-time buyer grants
- Home buying assistance
- Help to Buy Ireland
Are actually looking for the HTB Scheme.
Who Qualifies For Help To Buy In Ireland?
To qualify for the Help to Buy Scheme in Ireland, you generally must:
- Be a first-time buyer
- Be purchasing or building a qualifying home
- Further details below
- Live in the property as your main residence
- Take out a mortgage of at least 70% of the property’s value
- Purchase a property valued at €500,000 or less
If there is more than one applicant, all applicants must qualify as first-time buyers.
If you have previously purchased a property, you will generally not qualify for the scheme.
What Homes Qualify?
One of the most common misconceptions about the HTB Scheme is that it can be used for any home.
This is not the case.
The scheme is generally available for:
- New-build homes
- Self-build homes
A new-build home is a property that has never been lived in before.
A self-build home is a home you are building yourself, usually on land you own or have purchased.
The scheme generally cannot be used for:
- Second-hand homes
- Investment properties
- Holiday homes
This is one of the most important rules to understand before beginning the application process.
How Much Can You Get?
The amount available through the Help to Buy Scheme depends on several factors.
The maximum support available is whichever of these three is worth the least:
- €30,000
- 10% of the property value
- The amount of qualifying tax paid in recent years
This means that not everyone automatically receives the full €30,000.
For many first-time buyers, the actual amount is dependent on how much tax they have paid. In those cases, the value of the property being purchased and the €30,000 are irrelevant in terms of the amount afforded by the Help to Buy Scheme.
Help To Buy Calculator
Many buyers search for a Help to Buy calculator or Help to Buy Scheme calculator when trying to estimate how much support they may receive.
While an exact calculation depends on your circumstances, the following example can help.
Example 1
Property price: €300,000
- €30,000 minimum
- 10% of property value = €30,000
- Tax paid in recent years = €25,000
Potential HTB support: €25,000
These examples show why two buyers purchasing similarly priced homes may receive different amounts through the scheme. Someone paying €35,000 in tax would receive €30,000, rather than the €25,000 in this example.
How Does The Help To Buy Scheme Work?
The process is relatively straightforward.
1. Check Eligibility
Confirm that you qualify as a first-time buyer and that the property qualifies for the scheme based on the information given above.
2. Apply Through Revenue
Applications are made through Revenue’s (Office of the Revenue Commissioners) online system. First, you need to head over to www.revenue.ie and create an account. Then, go to Help to Buy Scheme on the website and begin your application.
Revenue reviews your tax history and determines the maximum amount available to you. This is why the scheme is often referred to as Revenue Help to Buy.
3. Purchase Or Build Your Home
Once your application has been approved, you will be guided on the website in order to access the funds that can be used towards the deposit on your qualifying property.
4. Complete The Purchase
The Help to Buy funds can reduce the amount you need to save yourself before buying a home and help you successfully complete the purchase of the home you want!
Help To Buy vs First Home Scheme
Many first-time buyers confuse the HTB Scheme and the First Home Scheme Ireland.
While both are designed to help buyers purchase a home, they work very differently.
Help To Buy Scheme
Simply put:
The government helps with your deposit.
The support comes from a refund of tax previously paid.
First Home Scheme
In comparison, the first home scheme is when:
The government helps cover part of the purchase price if your mortgage and deposit are not enough. In return, the government receives a percentage ownership interest in the property.
The First Home Scheme is often referred to as a shared equity scheme or shared equity scheme Ireland because the government receives an ownership share in the property.
Many buyers use both the First Home Scheme and the Help to Buy Scheme together.
The Bottom Line
The Help to Buy Scheme Ireland can make purchasing a first home easier and more of a realistic possibility for many.
Remember:
- The scheme helps first-time buyers with their deposit
- It applies to new-build and self-build homes
- Support can be worth up to a maximum of €30,000
- Applications are made through the Revenue website
- The scheme can be used alongside the First Home Scheme
Most importantly the scheme can help potentially reach home ownership sooner.
If you are considering purchasing your first home, Irish Mortgage Brokers can help you understand your eligibility, estimate potential support, and find the mortgage solution that best fits your situation.