Are you a first-time buyer in Ireland looking to step onto the property ladder? The journey to homeownership can feel overwhelming, but the Irish government has introduced several schemes to make it easier for first-time buyers. One of the most popular is the Help to Buy (HTB) scheme, designed to help you secure your dream home. In this blog post, we’ll explore everything you need to know about the first-time buyer scheme, including what is the HTB scheme, key benefits, and how to navigate the process of buying a second-hand house or securing a first-time buyer mortgage.
What is the Help to Buy Scheme (HTB)?
The HTB scheme is a government initiative aimed at assisting first-time buyers in Ireland. It provides a refund of certain taxes paid over the previous four years, up to €30,000, which can be used towards the deposit for a new home or a self-build property.
Key Benefits of the HTB Scheme
- A refund of up to a maximum of €30,000 or 10% of the property’s value.
- Helps bridge the gap between your savings and the deposit required for a first-time buyer mortgage.
- Available for both new builds and self-build properties.
Who Can Claim the Help to Buy Scheme
To qualify for the first-time buyer grant under the HTB scheme, you must meet the following criteria:
- Be a first-time buyer (you must not have previously purchased or built a property).
- Purchase or self-build a qualifying property between 1 January 2017 and 31 December 2029.
- Live in the property as your main home for at least five years after purchase or completion.
- Be tax compliant and have a Tax Clearance Certificate (TCC) if applicable.
- Secure a mortgage of at least 70% of the property’s value from a qualifying lender.
If you’re purchasing a second-hand house, note that the HTB scheme only applies to newly built properties. However, other supports may be available for first-time buyers in Ireland, such as the vacant home scheme.
What is a Qualifying Property?
A qualifying property under the HTB scheme must meet the following conditions:
- It must be a newly built property or a self-build.
- The property must be subject to VAT in Ireland.
- It must be your primary residence and not an investment property.
- The purchase value or approved valuation must not exceed €500,000.
How Much Can You Claim Under the First-Time Buyer Scheme?
The amount you can claim under the HTB scheme depends on several factors:
- The lesser of €30,000 or 10% of the property’s value.
- The total amount of Income Tax and DIRT paid in the four years prior to your application.
For example, if you’re a first-time buyer purchasing a property worth €450,000, you could claim up to €30,000. This refund can significantly reduce the deposit required for your first-time buyer mortgage.
Are First-Time Buyers Exempt from Stamp Duty in Ireland?
The Stamp Duty rates on private dwelling home purchases are as follows, regardless if first time buyer or second/ subsequent buyer:
- 1% on consideration up to €1 million.
- 2% on any consideration over €1 million and up to €1.5 million.
- 6% on any consideration over €1.5 million.
Steps to Apply for the Help to Buy Scheme
Applying for the HTB scheme involves three main stages:
1. Application Stage
- Register for myAccount (PAYE taxpayers) or Revenue Online Service (ROS) (self-assessed taxpayers).
- Submit your Income Tax Returns for the previous four years.
- Apply for the HTB scheme through the Property and Land Services section of myAccount or ROS.
2. Claim Stage
- Upload required documents, such as your mortgage approval letter, purchase contract, and valuation report (for self-builds).
- Confirm details about the property, mortgage, and shared equity (if applicable).
3. Verification Stage
- Your claim will be verified by your contractor (for new builds) or solicitor (for self-builds).
- Once verified, the refund will be paid directly to your approved qualifying contractor.
Can Revenue Claw Back a Refund?
Yes, Revenue can claw back your HTB refund if:
- You do not live in the property for at least five years.
- The property is not completed or purchased within the required timeframe.
- You were not entitled to the refund in the first place.
It’s essential to ensure you meet all the conditions of the HTB scheme to avoid any issues.
Why Seek Mortgage Advice?
Navigating the help to buy scheme and securing a first-time buyer mortgage can be complex. Seeking expert mortgage advice is crucial to ensure you make informed decisions and maximise the financial supports available to you.
At Fairstone, we provide expert mortgage advice tailored to your unique needs. Our team will guide you through every step of the process, from understanding the Help to Buy Scheme to securing the best mortgage deal for your new home.
Let’s Talk
Related articles:
Budget 2025 Key Announcements and Implications for Ireland
Sources:
Revenue.ie
Citizens Information
