The First Home shared equity scheme, designed to benefit middle-income home buyers, will be rolled out from early July 2022 according to Housing Minister Darragh O’Brien.
Government has allocated a minimum €400m funding to help thousands of first-home buyers to bridge the gap between a too-low income and being able to afford a mortgage. The First Home scheme will be jointly funded by mortgage lenders with the State providing an interest-free stake of up to 30pc in the home. To date, AIB, Bank of Ireland and Permanent TSB have signed up with others expected to follow suit.
The funding could cover investment in 8,000 new homes over the next four years. The scheme is likely to encourage builders to provide more homes for first-time buyers, too.
“I think this scheme has the potential to be a real game-changer for that group of people who can’t buy because of the gap between the finance they have and the finance they need. It will make a difference quickly,” said O’Brien.
The funding limit will be based on the median value for a new home in each local authority area. However, there will be no limit on income level. First-time buyers as well as divorced people and those who have been made bankrupt may apply.