Equity Share Guide Updated 6 July 2026

First Home Scheme Equity Share Explained Ireland

A practical guide to the First Home Scheme equity percentage, how it is calculated, how Help to Buy changes the maximum and what the share means after purchase.

On this page
  1. What the FHS equity share actually means
  2. How the percentage is calculated
  3. 20% vs 30%: why Help to Buy changes the maximum
  4. What happens if the home value changes?
  5. What the equity share does and does not mean
  6. The buyer-friendly way to think about it
  7. Next steps

What the FHS equity share actually means

The First Home Scheme is a shared-equity scheme. If FHS provides part of the purchase price or build cost, FHS receives an equity percentage in the home. That percentage is the important number.

Example: if the home costs €400,000 and FHS contributes €40,000, the FHS equity share is 10%. If the home is later valued at €450,000, a 10% share is worth €45,000 before any service charges or scheme adjustments are considered.

This is why FHS is not the same as a normal grant. The support can help you complete the purchase, but the percentage remains attached to the home until it is redeemed.

How the percentage is calculated

Input Example
Property purchase price or build cost €400,000
Mortgage and buyer funds available €360,000
Funding gap €40,000
FHS support €40,000
FHS equity share 10%

The formula is simple: FHS support ÷ property price or build cost = FHS equity share percentage. The difficult part is checking whether you are eligible and whether the property is within the relevant ceiling.

20% vs 30%: why Help to Buy changes the maximum

The maximum FHS support depends on whether Help to Buy is also being used.

  • Without Help to Buy: FHS support can be up to 30% of the purchase price or build cost.
  • With Help to Buy: FHS support can be up to 20% because Help to Buy is already helping with the deposit side.
  • Minimum support: the scheme also has a minimum equity support threshold, so very small gaps may not qualify.

This is why two buyers with the same property price can have different FHS percentages. The final percentage depends on deposit, mortgage, Help to Buy, local authority ceiling and the scheme assessment.

What happens if the home value changes?

Because the FHS support is an equity percentage, the euro amount you need to buy back can move with property value.

Scenario Property value later 10% FHS share value
Value stays the same €400,000 €40,000
Value rises €460,000 €46,000
Value falls €360,000 €36,000

The same percentage can mean a different euro amount later. That is the main trade-off: FHS can help you buy sooner, but the buy-back cost may rise if the home rises in value.

What the equity share does and does not mean

  • It does mean FHS has a percentage interest in the property until redeemed.
  • It does mean certain future decisions, such as sale, renting out, switching lender or redemption, may need FHS involvement.
  • It does not mean FHS pays your mortgage or shares day-to-day running costs.
  • It does not mean you can ignore normal lender affordability rules.
  • It does not mean the property can be treated like an investment property; it must remain your principal private residence unless the scheme rules allow otherwise.

The buyer-friendly way to think about it

Do not ask only, “How much can I get from FHS?” Ask these four questions together:

  1. What percentage will FHS own? A smaller percentage is easier to manage later.
  2. Can I redeem before year 6? This avoids service charges if full redemption is possible.
  3. What if I need to sell? A sale usually means the FHS share has to be redeemed from the proceeds.
  4. What if I switch lender? Switching to a non-participating lender can trigger full redemption.

Next steps

Frequently asked questions

Is the FHS equity share a loan?

No. It is a shared-equity stake, not a normal loan with monthly repayments. FHS receives a percentage interest in the home in return for the support.

Does the FHS percentage stay the same?

The percentage can remain in place until you redeem it. If you make a partial redemption, the remaining FHS percentage should reduce.

Can the amount I owe rise?

Yes. If the home value rises, the euro value of the FHS percentage can rise. A 10% share is worth more on a €450,000 valuation than on a €400,000 valuation.

Can the amount I owe fall if the property value falls?

The equity model means the share value can fall if the property value used for redemption falls. Always confirm the actual calculation with FHS before making decisions.

Does using Help to Buy reduce the FHS maximum?

Yes. If you use Help to Buy, the maximum FHS support is generally lower than if you do not use Help to Buy.

Should I take the maximum FHS amount available?

Not automatically. A smaller FHS share is usually easier to redeem and cheaper to keep long term. Take only what you need after checking mortgage, deposit and Help to Buy.

Does FHS become a co-owner in the day-to-day sense?

FHS has an equity interest, but you remain responsible for living in, maintaining and managing the home under your mortgage and scheme documents.

Sources & references

Back to First-Time Buyer Schemes Ireland
Redeeming or Buying Back Your First Home Scheme Equity Share A practical Irish guide to buying back the First Home Scheme equity share, including partial redemption, valuations, sale triggers and common timing mistakes. First Home Scheme Service Charges Explained: What You Pay From Year 6 First Home Scheme costs explained, including service charges from year six, example costs, deferral, payment choices and redemption planning. First Home Scheme Ireland Explained: Shared Equity for Buyers A detailed First Home Scheme guide explaining shared equity, funding gaps, eligibility, redemption, service charges and Irish buyer scenarios.

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