Latest news with #FirstHomeScheme
Extra.ie
a day ago
- Business
- Extra.ie
What does the raised ceiling prices in the First Home Scheme mean for potential homeowners?
Thousands of potential homeowners are set to benefit following the latest changes made the the First Home Scheme. The shared equity scheme was first launched in July 2022 to help bridge the gap for those with income to low to afford a mortgage big enough for their very first home. The government and participating banks provide an interest-free stake of up to 30% as a means of helping people get onto the property ladder. Thousands of potential homeowners are set to benefit following the latest changes made the the First Home Scheme. Pic: Getty Images The scheme has a twice-yearly review of the price ceilings that apply to qualifying homes with the latest review leading to the price ceiling being raised in Dublin city and county as well as Wicklow. Now, houses in the Dublin City and Wicklow County area valued at up to €500,000 will be eligible to qualify for the scheme, bringing the limit to the same level as apartments in the area. 16 of Ireland's 31 local authority areas have raised the price ceiling limits. Now, houses in the Dublin City and Wicklow County area valued at up to €500,000 will be eligible to qualify for the scheme, bringing the limit to the same level as apartments in the area. Pic: Shutterstock The 740m scheme applies to new properties including self-builds and apartments. Renters who want to buy their home for their landlord who is looking to sell are also eligible for the sceme. The Irish Independent report that many of the 16 local authority areas will see an increase of €25,000 in the relevant scheming following the bi-annual review. Local authority areas seeing an increase are Clare, Fingal, Louth, Sligo, Cork County, Galway County, Mayo, South Dublin, Dublin City, Kerry, Meath, Wexford, Dun Laoghaire-Rathdown, Kildare, Offaly and Wicklow. The changes, which came into effect on Tuesday, mean more first-time buyers will qualify for the scheme. In order to qualify, your mortgage must be with a participating lender with AIB, Bank of Ireland and Permanent TSB all on board with the scheme alongside EBS and Haven. First-time buyers are told to have a deposit of a minimum of 10% which would be 10% of the property's purchase price. Recipients of the Help to Buy Scheme can put that scheme towards the deposit if required.
Irish Independent
3 days ago
- Business
- Irish Independent
Price ceiling on homes raised on State-supported scheme for buyers
The raising of the price ceiling for the First Home Scheme will mean every new house in a private development valued at €500,000 or less in Dublin city and county and Wicklow will now be eligible for the scheme. This brings the limit for houses to the same level as apartments in these areas. The First Home Scheme is a €740m fund set up to help first-time buyers to bridge the gap between their mortgage, deposit and the price of a new home. It is part of the Government's Housing for All strategy. The raising of the price ceiling in 16 of Ireland's 31 local authority areas reflects the surge in property values. But critics of the scheme are likely to claim the move to raise the price ceiling will further increase property price inflation, and largely benefit builders. The scheme only applies to new property, including self-builds and apartments. Last year the scheme was extended to include renters who want to buy their home from a landlord who has indicated a wish to sell and has issued the tenant with a notice of termination. The price ceiling change will mean most of these 16 local authority areas seeing an increase of €25,000 in the relevant ceiling. This extension follows the latest of the scheme's scheduled twice-yearly reviews of the price ceilings that apply to qualifying homes. First Home Scheme is a joint venture between the State and AIB – including subsidiaries EBS and Haven – Bank of Ireland and PTSB. Under the scheme, the State provides an interest-free equity for a six-year period for a stake of up to 30pc in the home. ADVERTISEMENT There are maximum property price ceilings for each local authority area. The local authority areas seeing an increase are Clare, Fingal, Louth, Sligo, Cork County, Galway County, Mayo, South Dublin, Dublin City, Kerry, Meath, Wexford, Dun Laoghaire-Rathdown, Kildare, Offaly, and Wicklow. A price ceiling of €500,000 for new houses, including self-builds, and apartments will now apply to Dublin City, Dun Laoghaire-Rathdown, Fingal, South Dublin and Wicklow. The changes take effect from tomorrow, July 1. First Home Scheme bosses said the changes will allow more first-time buyers to qualify for the scheme. They claimed the aim of the price ceilings is to ensure the Scheme can benefit as many people as possible without causing distortion in local housing markets. Scheme chief executive Michael Broderick said his organisation will continue to review the ceilings on a twice-yearly basis, with its next review in early 2026. He said: 'Our price ceiling review takes place every six months to make sure we get the balance right between encouraging usage of the scheme, promoting housing supply and avoiding price distortion in local housing markets.' He said the latest changes show how the scheme can evolve to reflect market conditions across Ireland and to continue to help as many first-time buyers as it can. The scheme's latest quarterly progress update was published in April and showed 6,774 buyers in all 26 counties have been approved by the scheme and have received eligibility certificates allowing them to buy their chosen home. A joint application is counted as one buyer, not two. Some 3,323 buyers in 25 counties have already completed the purchase of or drawn down funds to self-build their home using the scheme.
The Journal
21-05-2025
- Business
- The Journal
This mortgage calculator does all the hard work for first-time buyers
BUYING YOUR FIRST home is sure to be one of the most exciting milestones of your life, as well as one of the biggest financial decisions you'll ever make. Making the journey smoother for first-time buyers is an essential part of Glenveagh's mission, which is why they have designed the free, easy-to-use Glenveagh Mortgage Calculator . With so many variables to take into account when deciding whether the home you want fits with your budget, the mortgage calculator can simplify your decision-making process by breaking down exactly what you can expect to pay, both in terms of deposit and monthly mortgage repayments. What sets the Glenveagh Mortgage Calculator apart from similar digital tools is the built-in functionality that allows you to see exactly how the Help to Buy scheme and First Home Scheme can help first-time buyers financially. The calculator is also unique in that it allows users to calculate their deposit payment and mortgage repayments when making use of the two support schemes in conjunction with one another. Glenveagh Homes / YouTube As you can see in the video above, the Glenveagh Mortgage Calculator is a digital tool with a user-friendly interface. All you need to do is enter some basic details, including house price, property type, local authority area, mortgage length and interest rates, and the calculator gives you a clear picture of what to expect from your mortgage. First-time buyers can also toggle the First Home Scheme and Help to Buy buttons on and off to see how these routes to payment can make a major difference for you. The calculator is available both on mobile and desktop. The Help to Buy scheme offers first-time buyers up to €30,000 as a tax rebate towards their deposit. The First Home Scheme provides additional support in the form of shared equity. When used in conjunction with the Help to Buy scheme, it can cover up to 20% of the property's value. If Help to Buy is not being used, it can even offer up to 30%. This scheme is designed to bridge the gap between the buyer's deposit and mortgage, helping to close the affordability gap. Let's use the Glenveagh Mortgage Calculator to see how Help to Buy and the First Home Scheme used together could help you buy a two-bedroom home Rath Rua – a new Glenveagh community of beautifully designed family homes in Portlaoise. Advertisement First, you open the calculator. You enter the price of a two-bedroom house in Rath Rua (€305,000), as well as its local authority area (which in this case would be Co Laois). You will also enter your household salary, the property type (house or apartment), the term of your prospective mortgage, and the interest rate. Simply adding the purchase price, mortgage interest rate and the term will also give you the calculations you're looking for. After that, all you need to do is toggle the sliders next to Help to Buy and First Home Scheme to see how either or both schemes could change the equation and put your dream home within your grasp. This is what the Glenveagh Mortgage Calculator will show after you've entered the details above. In the case of the Rath Rua two-bed, the Glenveagh Mortgage Calculator shows that the Help to Buy scheme would contribute €30,000 to the deposit, leaving a remainder of only €500 in this case. The calculator also shows that the First Home Scheme, when used in conjunction with Help to Buy, contributes €61,000 to the overall cost of the home, meaning that monthly repayments would come in at €895 over the course of a 35-year mortgage at an interest rate of 3.6%. Glenveagh offers newly built homes in a range of communities across Ireland, and it's well worth using any one of those homes to calculate the difference that government support schemes could make to your short-term and long-term outgoings when buying your first home. By visiting the Glenveagh website , you can explore a range of communities from Dublin to Cork, as well as some of Ireland's best-connected and most bustling commuter towns. For each of these homes, the mortgage calculator will be able to break down the deposit and mortgage repayment costs with or without the two government schemes, as well as showing you the recommended household income for the house that you want. Buying your first home is an enormous accomplishment and a major life event. Make it as easy on yourself as possible with the Glenveagh Mortgage Calculator .
RTÉ News
13-05-2025
- Business
- RTÉ News
First Home Scheme extended to 2027, with €30m more in funding
The Government has announced an additional €30m in funding and an extension to 2027 for the First Home Scheme (FHS). The scheme is a shared-equity initiative designed to help bridge the funding gap for eligible first-time buyers and other homebuyers between their deposit and mortgage, and the price of their new home. Under the scheme the State can fund up to 30% of a property's purchase price by taking an equity share in the home, which can be bought back by the homeowner. Minister for Housing James Browne said there has been "strong interest" in the scheme, with over 15,300 people registering their interest and 6,700 buyers approved since it was launched in July 2022. According to Government figures, use of the scheme among first-time buyers increased significantly in the first three months of this year. There were 858 new applications, which marked an increase of 49% on the last three months of 2024. Approvals over the same period were up 51% to 727. The additional €30m funding brings the State's total commitment to the scheme to €370m. The Government has said this will be matched 50:50 by the participating banks, and will bring the total commitment to the scheme to €740m. Minister Browne said that the FHS makes it possible for "everyone to be able to afford their own home" and "this is something that should be within reach for people". He added that the additional funding will "allow the Scheme to operate until at least June 2027 so that it is sufficiently resourced". The FHS is available to first-time buyers, or those making a fresh start, who have mortgage approval with a participating lender. But Sinn Féin's housing spokesperson Eoin Ó Broin has criticised plans to extend the scheme for another two years, saying he believes it is raising house prices. Speaking with reporters on the Leinster House plinth today, Deputy Ó Broin said he is "not a fan of raising prices" and is opposed to the extension of the scheme. Meanwhile, Sinn Féin's Natasha Newsome Drennan said in her view "rural Ireland is dying" due to what she said is a failure to properly plan infrastructure for new homes and apartments. Sinn Féin is raising the issue of housing infrastructure in a Dáil private members motion later today, with the party's housing spokesperson Deputy Ó Broin also saying "a lack of prioritisation" is damaging housing development plans. He said in his view there is a need for more planning officials in local authorities, more judges to examine planning cases and other changes.
The Journal
13-05-2025
- Business
- The Journal
First Home Scheme to be extended for another two years out to June 2027
THE FIRST HOME Scheme is to be extended for another two years at Cabinet today. Housing Minister James Browne will also seek approval for an additional €30 million in funding for the scheme, which will match commitments by the banks participating in the scheme. The First Home Scheme is a shared equity scheme for first-time buyers that involves the government and participating banks paying up to 30% of the cost of the home in exchange for a stake in it, which can later be bought back by the home buyer. Currently, the scheme is only available to first-time buyers who are purchasing a newly built property or building their own. Advertisement Following today's approval, the scheme will be in operation for another two years until 1 June 2027. During the election, the former housing minister Darragh O'Brien along with Taoiseach Micheál Martin spoke in favour of expanding the scheme to include second-hand homes. Fine Gael also pledged to broaden the First Home Scheme so that first-time buyers purchasing a second-hand home are eligible for the support. The programme for government includes a commitment to expand the scheme for first-time buyers of second hand homes, while also promising to increase targets and extend the supports out to 2030. The housing minister told The Journal last week that such a move is being examined, stating that concerns have been raised that expanding the programme out to second-hand homes could increase house prices. 'Some people feel that it would actually increase the prices for those properties. So we're examining it. It's not something that's going to be done in the immediacy, but it is examined as part of the new housing plan,' said Browne. Read Next Related Reads RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears Chaos of housing tsar controversy is a symptom of a longer running dysfunction in Housing Such concerns have been raised by members of the opposition in the past. The First Home Scheme progress report for Q1 2025 noted that since its launch to the end of the first quarter 15,356 people have registered for the scheme. There have been 6,774 approvals for individuals or families for the scheme with 3,323 drawdowns used to finance the purchase of new home. The government's new housing plan which is set to outline further housing interventions is due to be published in July. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
