What Is the Help To Buy Scheme?
The Help to Buy Scheme is aimed at first time buyers who have difficulties coming up with the 10% deposit for purchasing a house.
It was launched in March 2017 and has been extended to end on 31 December 2022. Homeowners who signed contracts to purchase homes after December 19th 2016 can also apply for it.
Key factors:
- You can receive 10% of the purchase price or of the completion value of a new build.
- The maximum amount you can claim is now set at €30,000 and it can only be applied to new homes purchased from qualifying contractors.
- The programme is aimed at first-time buyers only. If you are buying the property with anyone else, it must also be their first time buying a home.
- The scheme is applicable to newly-built houses or apartments. New self-build homes also qualify but cannot be applied to second hand homes.
- You will be able to claim both a refund on income tax and a refund on any Deposit Interest Retention Tax (DIRT) you have paid in the previous four years.
- It does not cover investment properties and it is expected to be your main residence for at least five years.
- You must take a mortgage of a minimum of 70% of the purchase price.
- The scheme is only available for properties which cost less than €500,000.
- It can also be used in conjunction with the Local Authority Home Loan.
How Does the Help To Buy Scheme Work?
- Apply for the scheme before taking out a mortgage or purchasing a home.
- When calculating your mortgage and budget, keep in mind that to qualify for this scheme, your mortgage must be for at least 70% of the purchase price of the home.
- Be sure to select a newly-built home through a qualified contractor. You can find a listing of qualified builders through the Revenue Ministry.
- Lastly, you also need to be tax compliant yourself to qualify for the programme.
What Happens If I Sell a House I Bought Through the Help To Buy Scheme?
Anyone who purchases a first-time buyer's house through the scheme must live in the house for at least five years or be liable to refund some of the tax savings received as well as stamp duty relief.
| Date of Sale | % of Rebate | Amount |
|---|---|---|
| Within 1 year of purchase | 100% | Up to €20,000 |
| Within 2 years of purchase | 80% | Up to €16,000 |
| Within 3 years of purchase | 60% | Up to €12,000 |
| Within 4 years of purchase | 40% | Up to €8,000 |
| Within 5 years of purchase | 20% | Up to €4,000 |
How To Apply for the Help To Buy Scheme?
- Filing Form 11 or 12 — Once you have worked out the amount of tax rebate you can claim back, you can apply before choosing a house or mortgage. You must have filed forms 11 or 12 for the previous four years with Revenue before applying. You can apply online through Revenue's MyAccount (for PAYE employees) or ROS (for self-assessed taxpayers).
- Arranging a Mortgage — You can then arrange a mortgage or house purchase through a qualifying contractor. The rebate will be paid directly to the qualifying contractor of the property you have chosen.
- After Signing the Contract — You complete the second part of the claim when you have signed the contract for a house. You return to the application you began in stage 1 and upload proof of mortgage, a valuation report and a copy of the purchase contract.
- Confirming Details — You will then need to confirm details such as the purchase price, estimated date of completion, mortgage details, and any money you have already paid towards the deposit.
- Final Checks — The contractor will then confirm the veracity of any details you submitted and will directly receive the refund to put towards the deposit.
Does Everyone Qualify for the Help To Buy Scheme?
- This must be your first-home purchase.
- The property you are buying must have a value of €500,000 or less.
- You must live in the property as your main residence for a minimum of five years.
- You have to take a mortgage of at least 70% of the property's value.
- The property must be a new build or self-build between 1 March 2017 and 31 December 2022.
- You must be tax compliant with Revenue.
Need Help Setting Up Your New Home?
Moving house? Our experts at Selectra can set up your energy, broadband, and utilities in one free call — saving you time and money.
What Is the Affordable Housing Scheme?
The Affordable Housing Scheme is primarily aimed at lower-income households that seeks to enable first-time purchasers to buy a home. Newly constructed dwellings can be bought for much less than their current market value.
In December 2021, a new Affordable Housing Scheme was approved by the government and divided into two new schemes.
1 - Local Authority Affordable Housing Purchase Scheme
This scheme is to help people on low-to-moderate incomes to buy homes at reduced prices.
Who Qualifies?
- Your purchase power must be lower than 85.5% of the market value of the property.
- You cannot have more accumulated savings than the money required to cover the deposit and an additional €30,000.
- You must not have previously owned a home to live in. Some exceptions apply.
- You must have a legal right to live in Ireland.
2 - First Home Affordable Housing Scheme
This scheme is available nationwide and is called the First Home Scheme. It is targeted at first-time home buyers with moderate incomes to buy a new-build home at discounted prices.
Under this scheme, banks and the government are expected to pay 30% of the cost of the new home. They will maintain a stake in the home until you decide to pay it back.
You can get additional information in the Housing for All plan.
The Affordable Housing Scheme in Dublin
Dublin City Council announced affordable housing developments. Estimated prices:
Ballymun
| Property Type | Price |
|---|---|
| One-bed apartment | €116,000 |
| Two-bed duplex/house | €148,000 - €168,000 |
| Three-bed duplex/house | €176,000 - €200,000 |
| Four-bed house | €232,000 |
Ballyfermot
| Property Type | Price |
|---|---|
| One-bed apartment | €136,000 |
| Two-bed duplex/house | €180,000 |
| Three-bed duplex/house | €236,000 |
What Is the Local Authority Home Loan Scheme?
Formerly the Rebuilding Ireland Home Loan, the programme was revamped in March 2022. It consists of a mortgage that is backed by the government at a reduced interest rate and can be used to obtain up to 90% funding of the market value of properties.
This scheme is only for first-time buyers and can be used in conjunction with the Help to Buy Scheme. It can be used for both new and second-hand properties.
Who Qualifies for the Local Authority Home Loan Scheme?
- Must have a maximum annual gross income of €65,000 for Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow residents. Less than €50,000 for all other counties.
- Joint applications must not surpass a combined annual gross income of €75,000 for all counties.
- The maximum market value of eligible homes is €320,000 in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, dropping down to €250,000 in the rest of the country.
- You must be an Irish resident or have indefinite leave to remain.
To check how much of a loan you could get, you can use the Home Loan Calculator. For more information, contact your local county council.
How Do I Apply for the Local Authority Home Loan Scheme?
You need to complete the Local Authority Home Loan Scheme Application form and present it to the appropriate local authority office.
If you require any additional information, you can contact the national helpdesk on 051 349 720.
Need Help Setting Up Your New Home?
Moving house? Our experts at Selectra can set up your energy, broadband, and utilities in one free call — saving you time and money.
What Is the Mortgage Allowance Scheme?
The Mortgage Allowance Scheme is meant to enable social housing tenants to get a mortgage or directly purchase a house. It is an allowance of up to €11,450 which will be paid to the mortgage lender over a period of five years.
Who Is Eligible?
- Local authority tenants who wish to return their present house to local authorities and are not buying a house under the Shared Ownership Scheme.
- Housing association tenants who have held a tenancy for more than one year under the Rental Subsidy Scheme.
- The minimum mortgage amount necessary to qualify is €38,092.14.
| Year | Allowance |
|---|---|
| 1 | €3,560 |
| 2 | €2,800 |
| 3 | €2,040 |
| 4 | €1,780 |
| 5 | €1,270 |
Need Help Setting Up Your New Home?
Moving house? Our experts at Selectra can set up your energy, broadband, and utilities in one free call — saving you time and money.
What Is the Shared Ownership Scheme?
The Shared Ownership Scheme was aimed at helping citizens who could not afford to buy a home all in one go. It allowed citizens to buy a proportion of a home, with the local authority owning the rest of it.
Payments gradually increase the portion of the property owned by the purchaser until it is fully owned within 30 years of its original purchase. The scheme ceased to operate in 2012, however, you can still find information and obtain help about this programme if you purchased a home under this scheme.
Frequently Asked Questions About Help To Buy Schemes in Ireland
Related guides