On this page
- Overview
- What shared equity actually means
- Who FHS is for
- Who FHS is not for
- The funding gap formula
- Worked example 1 — Tadhg and Sinead: a gap below the FHS minimum
- Worked example 2 — Ruairi: Galway self-build
- Worked example 3 — Daire: Dublin solo buyer using HTB + FHS
- Long-term cost — redemption and service charges
- How FHS works alongside Help to Buy
- Where the calculator helps and where it stops
- Three Irish patterns
- Next steps
Overview
For qualifying contracts signed or first self-build mortgage drawdowns from 7 October 2026 to 31 December 2029, the maximum HTB refund is the lowest of €35,000, 10% of the purchase price or approved valuation, and eligible Income Tax plus DIRT paid in the four years before application. The €30,000 cap applies from 23 July 2020 through 6 October 2026. Worked examples below using a €30,000 HTB refund retain that assumed or historical refund; do not automatically substitute €35,000 because the tax-paid and 10% limits may still reduce entitlement. Other eligibility conditions remain unchanged. Revenue: HTB limits and dates.
Who FHS is for
- First-time buyers purchasing or self-building a new home in Ireland.
- Fresh Start applicants — separated, divorced, or insolvency-discharged people who previously owned a home. The eligibility test is narrower than first-time buyer status. Read the Fresh Start guide for the exact conditions.
- Buyers whose mortgage approval plus deposit does not reach the property price, where the property is within the relevant local authority price ceiling.
- Buyers using a participating lender.
Who FHS is not for
- Anyone buying for investment or letting.
- Anyone whose mortgage + deposit already covers the price — FHS only fills a gap. It is not a top-up.
- Anyone whose property exceeds the local authority price ceiling for the relevant county.
- Anyone using a non-participating lender.
- Most second-hand home buyers — the separate Tenant Home Purchase route covers some tenants buying from their landlord, but it is a different application path and is not what most second-hand buyers think it is.
The funding gap formula
The maths is simpler than people expect:
Funding gap = Property price − (Mortgage approval + Cash deposit + Help to Buy if used)
FHS fills part of that gap, up to a percentage cap, up to the local ceiling, up to your eligibility.
| Situation | Maximum FHS support |
|---|---|
| FHS used alone (no HTB) | Up to 30% of property price or approved valuation |
| FHS used together with HTB | Up to 20% of property price or approved valuation |
The reduction from 30% to 20% when HTB is used is deliberate scheme design. HTB already reduces the deposit you need to find. FHS is intended as a last-resort gap filler, not a top-up to maximise total state support.
Worked example 1 — Tadhg and Sinead: a gap below the FHS minimum
Tadhg and Sinead are buying a new-build 3-bed house in Cork City for €420,000.
- Joint mortgage approval: €340,000
- Cash deposit saved: €42,000
- Help to Buy estimated refund: €30,000
Total funds before FHS: €340,000 + €42,000 + €30,000 = €412,000.
Funding gap remaining: €420,000 − €412,000 = €8,000.
Although the 20% combined cap is €84,000, FHS also has a minimum funding amount: the higher of 2.5% of the property price or €10,000. For this €420,000 home, the minimum is €10,500.
Their €8,000 gap is below that minimum, so they cannot take an €8,000 FHS share. They would need to complete without FHS or revisit the mortgage, deposit or purchase price with their lender and solicitor. This is why both the minimum and maximum FHS limits must be checked.
Worked example 2 — Ruairi: Galway self-build
Ruairi owns a site in rural Galway worth €60,000 (gifted by family). He has mortgage approval of €280,000 and €18,000 in cash. His approved build cost is €340,000.
- Site value: €60,000 — enough to satisfy the 10% deposit requirement, subject to lender confirmation
- Mortgage: €280,000
- Additional cash available for the build: €18,000
For FHS funding, the site value can form part or all of the required deposit, but it is not simply added to the mortgage as cash available to pay the €340,000 build cost. Ruairi’s mortgage and cash total €298,000, leaving a potential build-cost gap of €42,000.
Subject to the remaining eligibility checks and any Help to Buy amount, FHS may be able to bridge that gap. If Ruairi uses HTB, the maximum FHS share reduces to 20%; without HTB it can be up to 30%. His lender and FHS must confirm how the site, cash, mortgage and build cost are treated.
Worked example 3 — Daire: Dublin solo buyer using HTB + FHS
Daire is buying a new-build 1-bed apartment in Dublin City for €395,000, within the FHS price ceiling for his local authority.
- Mortgage approval: €280,000 (his maximum — 4× his single income of €70,000)
- Cash deposit: €20,000
- HTB estimated refund: €30,000
Total: €330,000.
Funding gap: €395,000 − €330,000 = €65,000.
The 20% combined cap (because HTB is used): 20% of €395,000 = €79,000. That covers the €65,000 gap. So Daire can take FHS support of €65,000, meaning FHS holds an equity share of €65,000 ÷ €395,000 = about 16.5% of his apartment.
When Daire eventually sells or redeems, 16.5% of the then-current market value goes back to FHS. If the apartment is worth €500,000 in fifteen years, FHS’s share would be €82,500, not €65,000. If the apartment is worth €350,000 because of a market downturn, FHS’s share would be €57,750.
Estimate your funding gap with the First Home Scheme Calculator
Long-term cost — redemption and service charges
This is the part most first-time buyers don’t think about until year 6.
- Years 1–5: no service charge. The equity stake exists but you pay nothing year-to-year.
- From year 6: a service charge begins. It is calculated from the original purchase price or build cost multiplied by the remaining FHS equity-share percentage—not from the home’s current market value.
- Rate bands: 1.75% for years 6–15, 2.15% for years 16–29 and 2.85% from year 30 onwards.
This means an FHS-supported home becomes more expensive to keep over time if you don’t redeem. The full year-by-year picture is covered in the Service Charges Explained guide.
You can redeem the FHS equity stake in full or make partial redemptions under the scheme rules. A partial redemption is normally at least 5% of the original FHS amount, only two are permitted in any 12-month period, and self-build partial redemptions cannot begin until the build is complete. A current approved valuation may also be required.
How FHS works alongside Help to Buy
In short: HTB reduces the deposit you need to find. FHS closes any remaining price gap. They are usually applied in that order.
When you use HTB with FHS:
- The FHS maximum reduces from 30% to 20%.
- You apply to each scheme separately.
- Most lenders prefer HTB to be approved before FHS.
The full sequence, including a combined worked example, is in Using HTB and FHS Together.
Where the calculator helps and where it stops
The FHS Calculator estimates:
- Your funding gap
- The likely equity share percentage
- A planning estimate of service charges across the years
It does not confirm:
- That your specific lender is currently a participating lender
- That the property is within the current price ceiling for your local authority
- That your Fresh Start status will be accepted
- That your build cost is "approved" for self-build purposes
Use the calculator as a planning tool. Use the FHS application portal to confirm eligibility before going sale-agreed.
Three Irish patterns
| Pattern | Best fit | Why |
|---|---|---|
| FTB couple, new-build family home, mortgage falls short of local prices | HTB + FHS combined | HTB lowers deposit need, FHS closes remaining gap |
| FTB solo buyer with healthy deposit but limited borrowing on single income | HTB only if possible | Avoid taking shared equity if not strictly needed |
| Self-builder with significant site value | HTB and/or FHS if a build-cost gap remains | Site equity can satisfy the deposit requirement but does not automatically remove the build-cost funding gap |
| Fresh Start applicant, post-divorce | FHS via Fresh Start; HTB has a stricter FTB definition | Read Fresh Start guide |
Next steps
- Check your county limit: Price Ceilings Ireland.
- Plan long-term cost: Service Charges Explained.
- Compare with HTB: Using HTB and FHS Together.
- Check your borrowing limit: Mortgage Affordability Calculator.
- Estimate repayments: Mortgage Repayment Calculator.
Frequently asked questions
Is the First Home Scheme actually a loan in disguise?
No. It is a sharedequity arrangement. The state and participating banks take an equity share in your home rather than lending you money. You make no monthly repayments to FHS, and there is no interest in the traditional sense — but you do owe back the equity share when you sell or choose to redeem.
What's the maximum amount FHS will give me?
Up to 30% of the property price if you use FHS alone, or up to 20% if you also use Help to Buy. The actual amount is the smaller of your funding gap and that percentage cap, and only up to the local authority price ceiling. Many buyers use much less than the maximum because the funding gap closes long before the cap does.
Why does FHS drop from 30% to 20% if I add Help to Buy?
Because HTB already reduces your deposit shortfall. FHS is designed as a lastresort gap filler rather than a topup to maximise total state support. The combined cap of 20% reflects that design.
Do I ever pay anything to FHS year by year?
There is no service charge for the first five years. From year 6, the charge is calculated from the original purchase price or build cost and the remaining FHS equityshare percentage. The rates are 1.75% for years 6–15, 2.15% for years 16–29 and 2.85% from year 30 onwards.
Can I use FHS to buy a second-hand house?
Standard FHS is for newbuilds and selfbuilds, not secondhand homes. A separate route called Tenant Home Purchase covers some tenants buying from their landlord, but that is a different application path and most secondhand purchasers cannot use it.
How do I actually pay FHS back?
You can redeem the equity stake in full or partially at any time by paying FHS the current market value of its share. Most buyers fund redemption from savings, a remortgage at a stronger LTV, or an inheritance.
If my house doubles in value, does FHS take twice as much back?
Yes. The FHS share is a percentage of the property's value, not a fixed euro amount. If FHS owns 16.5% of a home that doubles in price, the redemption cost doubles too.
Which lenders participate in FHS?
The participating lenders currently include Bank of Ireland, PTSB and AIB Group lenders AIB, EBS and Haven Mortgages. Confirm the current list directly with FHS before relying on an Approval in Principle.
What happens if I cannot pay the FHS service charge later?
FHS allows servicecharge payments to be deferred without an additional deferral fee, but the unpaid charge continues to accrue and must be settled at specified events such as full redemption, sale, a move to a nonparticipating lender or when the home is no longer your principal private residence. Check the customer contract and take independent advice.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.