What is the First Home Scheme (FHS)?
The FHS is a scheme backed by the Irish Government to enable first time buyers and other eligible borrowers to get on the property ladder
How have the rules changed for the FHS in 2023?
Following the Central Bank announcement to the change of the lending rules on Loan to Income (LTI) Ratio for First Time Buyers from 3.5 to 4, the First Home Scheme (FHS) criteria has also been updated to take into account these changes. The FHS have also updated their price ceilings for many areas in the country.
Now customers can now borrow up to 4 times Loan to Income (LTI), as long as criteria has been met.
I am already approved for the FHS under the previous rules.
Where a customer is already approved at 3.5 times LTI or lower, and has already been provided with their eligibility cert by the FHS, then these customers can proceed as they are.
How much financial help can you get?
You can get up to 30% of your house price funded by the First Home Scheme, however price caps exist and your home must be within the price limit in your area.
Has there been a change in the house price ceiling?
In 2022, The First Home Scheme had it’s scheduled twice-yearly review of the price ceilings that are applicable to qualifying homes. This resulted in increases of up to €75,000 in 30 of Ireland’s 31 local authority areas.
Updated House Price Ceilings now in place are as follows:
| House price ceiling | Apartment price ceiling |
Cork City, Dublin City, Dún Laoghaire-Rathdown, Fingal, South Dublin | 475,000 | 500,000 |
Galway City | 425,000 | 450,000 |
Limerick City and County | 375,000 | 450,000 |
Waterford City and County | 350,000 | 450,000 |
Wicklow County | 475,000 | 475,000 |
Kildare County, Cork County | 425,000 | 425,000 |
Galway County , Kilkenny, Meath, Westmeath, Louth | 375,000 | 375,000 |
Laois | 350,000 | 350,000 |
Clare, Kerry, Mayo , Monaghan, Offaly, Roscommon, Wexford | 325,000 | 325,000 |
Carlow, Cavan, Donegal, Leitrim, Longford, Sligo, Tipperary | 325,000 | 325,000 |
What happens if you want to move?
If you need to move you will need to contact the FHS if you are planning to sell the property. Any outstanding service charge fees and the equity share will need to be repaid in full upon the sale.
For further information on the Shared Equity Scheme, speak to one of our Financial Advisors today