On this page
- When stacking the two schemes is worth it
- Side-by-side comparison
- When using HTB first makes sense
- When FHS becomes necessary
- Why FHS drops from 30% to 20% when used with HTB
- The funding stack — how the four layers sit together
- Worked example — combined funding stack
- Recommended application order
- Risks of combining the two schemes
- Next steps
When stacking the two schemes is worth it
If your mortgage approval plus your cash deposit doesn’t quite reach the price of a new-build you want, you have probably already wondered whether you can use both Help to Buy and the First Home Scheme at the same time. The short answer is yes, in many new-build and self-build situations. The longer answer matters more — because combining the two schemes changes the maximum support FHS can give you, and the application order can affect what your lender approves.
This guide treats the two schemes side-by-side so you can decide quickly whether stacking them helps you or just adds long-term complexity.
Side-by-side comparison
| Attribute | Help to Buy | First Home Scheme |
|---|---|---|
| What it is | A Revenue refund of Income Tax and DIRT you have already paid | A shared-equity stake taken by the state and participating banks |
| Who it’s for | First-time buyers under Revenue’s definition | First-time buyers and Fresh Start applicants |
| Property type | New-build or self-build only | New-build or self-build (separate Tenant Home Purchase route for some second-hand) |
| Payment direction | Refund → contractor (new-build) or to you (self-build) | Equity stake → held against the property |
| Cap | €30,000 | Up to 30% standalone, or 20% with HTB |
| Effect on stamp duty | None | None |
| Effect on mortgage size | Can reduce the mortgage you need | Can reduce the mortgage you need |
| Long-term cost | None — once received, no ongoing obligation | Equity share grows with property value; service charge from year 6 |
| Eligibility check | Revenue + tax compliance + 70% LTV + price limit | Lender + scheme + price ceiling + participating bank |
| Typical application order | HTB first | FHS after HTB approval |
When using HTB first makes sense
HTB is the simpler scheme. It is a one-off refund. Once it lands with the contractor (or you, for a self-build), there is no ongoing obligation. If you qualify and you are buying or building a new home, take HTB first because:
- The application is independent of any FHS process.
- The refund effectively boosts your deposit, which in turn lowers the funding gap FHS will have to fill.
- A smaller FHS share means a smaller long-term equity stake held against your home.
When FHS becomes necessary
FHS is the gap-filler. You should turn to FHS only when:
- Your mortgage approval plus deposit plus HTB still doesn’t reach the property price.
- The home is within the local authority price ceiling for FHS — check it first with the FHS price ceiling lookup.
- You are using a participating lender (AIB, Bank of Ireland, or Permanent TSB).
- You accept that FHS takes an equity share in your home that grows with property value and carries service charges from year 6.
The principle: don’t take FHS support you don’t need. Every euro of FHS support is a euro of shared equity you will eventually pay back, possibly at a higher market value, possibly with cumulative service charges along the way.
Why FHS drops from 30% to 20% when used with HTB
The reduction is deliberate. HTB already lowers the deposit shortfall. FHS is designed as a residual gap-filler, not as a top-up to maximise total state support. If both schemes could be claimed at their independent maxima, buyers could end up with very small private deposits and disproportionate state exposure on their homes.
The 20% cap reflects this design choice. It is not a bug. It is not negotiable on a case-by-case basis. The combined ceiling is the rule.
The funding stack — how the four layers sit together
For a new-build purchase, the funding stack normally looks like this:
- Mortgage — usually 80–90% of the price.
- Cash deposit — your savings, gifts received, or proceeds from selling another asset.
- Help to Buy — Revenue refund applied to the deposit shortfall.
- First Home Scheme — final gap-filler in exchange for an equity stake.
If steps 1+2 cover the price, you don’t need 3 or 4. If steps 1+2+3 cover the price, you don’t need 4. FHS belongs at the bottom of the stack because it is the most expensive layer over time.
Worked example — combined funding stack
Méabh and Eoin are buying a new-build 3-bed family home in Limerick for €380,000, within the FHS price ceiling for their local authority.
Their funding position:
- Joint mortgage approval: €342,000 (90% LTV)
- Cash deposit: €20,000
- Help to Buy estimated refund: €18,000 (limited by their combined tax-paid record)
- Total before FHS: €342,000 + €20,000 + €18,000 = €380,000
In this case, Méabh and Eoin actually cover the full price without FHS. Adding FHS would only create a shared equity stake they don’t need.
Now change one variable. Suppose Méabh and Eoin only have €10,000 in cash instead of €20,000. Their total falls to €370,000, leaving a €10,000 gap. The 20% combined FHS cap (€76,000) easily covers it. They would take €10,000 of FHS support, with FHS holding an equity share of €10,000 ÷ €380,000 = about 2.6% of the home.
That 2.6% will be redeemed later — but at the home’s then-current value, not today’s. If the home rises to €450,000 by the time of redemption, 2.6% of €450,000 = €11,840, not €10,000.
This is the long-term arithmetic of shared equity: small gaps today can become larger debts tomorrow if the market moves up.
Recommended application order
For most stacked HTB + FHS cases:
- Mortgage Approval in Principle (AIP) from a participating lender. Without AIP, neither scheme can be properly costed.
- Help to Buy application through Revenue myAccount or ROS. Get the application number and access code.
- HTB Approval Stage — verified by your contractor or solicitor.
- FHS application — your lender feeds your AIP, HTB amount, and your deposit into the FHS portal. FHS confirms the equity share.
- Sign contracts — your solicitor coordinates HTB claim stage, FHS funding, and mortgage drawdown so they land in the right order at closing.
Reversing this order — for example, going sale-agreed first then applying for both schemes — frequently causes timing problems at closing, including missed deadlines and re-quotation by the contractor.
Risks of combining the two schemes
| Risk | Why it matters |
|---|---|
| Larger long-term redemption exposure | Even a small FHS share grows with property value |
| Service charges from year 6 | An unredeemed FHS stake costs more every year |
| Timing failure at closing | Solicitor must align HTB claim, FHS drawdown, and mortgage drawdown |
| Reliance on contractor cooperation | HTB requires the contractor to verify the application |
| Lender criteria changes | Participating banks can adjust LTV or income multiples mid-application |
None of these should automatically rule out using both schemes. They are reasons to plan the funding carefully, not reasons to avoid stacking.
Next steps
- If you’re brand new to the schemes, start with the hub.
- Go deeper on each scheme: Help to Buy Explained and First Home Scheme Explained.
- Check long-term FHS cost: Service Charges Explained.
- Check the property is within the ceiling: FHS Price Ceiling Lookup, then read the FHS Price Ceilings guide if you need examples.
- Confirm your mortgage capacity: Mortgage Affordability Calculator.
Frequently asked questions
Can I really use both Help to Buy and the First Home Scheme on the same purchase?
Yes, on a qualifying newbuild or selfbuild, you can apply for both. The two applications run separately — HTB through Revenue, FHS through your participating lender — and the combined FHS cap reduces from 30% to 20% of the property price.
Why does FHS suddenly drop to 20% the moment I use Help to Buy?
Because HTB already lowers the deposit you need to find. FHS is designed to fill what's left, not to stack on top to maximise total state support. The combined ceiling reflects that.
Which one do I apply for first?
Mortgage approval in principle from a participating lender. Then Help to Buy through Revenue. Then FHS through the same lender once your HTB and deposit figures are known. Trying to apply for FHS before HTB usually means you've costed the funding stack wrong.
Can I get the full €30,000 from HTB and the full 20% from FHS?
Rarely. Your HTB refund is capped by your taxpaid record and the 10% rule. Your FHS support is capped by the funding gap and the price ceiling. In practice, most stacked buyers end up taking less than both headline maxima.
Does combining the two schemes affect my mortgage rate?
The rate is set by your lender based on LTV and product, not by HTB or FHS directly. But a smaller mortgage — because HTB and FHS reduce what you borrow — may move you into a better LTV band, which can affect the rate you're offered.
What if the contract price changes between HTB approval and contracts?
HTB approval is tied to a specific property and price. If the contract price moves materially, your HTB claim stage will be recalculated against the new price. FHS support recalculates as well. Your solicitor should flag this immediately if it happens.
Is there any downside to stacking schemes I should know about?
The main longterm downside is that the FHS equity share grows with your home's value. Even a small FHS stake today can mean a significantly larger redemption cost in 10–20 years. Plan a redemption path on day one — savings, future remortgage, or anticipated inheritance.
Sources & references
Related calculators
Use these tools for the numbers behind this guide.