THERE IS NO feeling quite like collecting your keys and setting foot inside your house for the first time as a homeowner. 

But as a first-time buyer, it can be a long and winding road before you finally get your hands on those keys. For this reason, you need to give yourself as many advantages as possible when exploring the housing market. 

One of the main routes by which a first-time buyer can improve their chances of getting a home is by knowing what support schemes are available to them, and by looking at prospective homes that will be eligible for those schemes. While the level of detail involved in these schemes may feel a little bit daunting, it is more straightforward than it seems — and it is essential information for anyone trying to take their first step onto the property ladder.

Source: Glenveagh homes

The Help to Buy scheme

The Help to Buy (HTB) scheme was first introduced in 2016 and will remain in place until at least the end of 2029. Through the scheme, eligible first-time buyers can claim up €30,000 or 10% of the purchase value of the new home, whichever is less, to be put towards their deposit payment. The scheme covers newly built homes which sell for less than €500,000, and you must live in the property for at least five years.

Help to Buy works by giving a refund of the income tax and Deposit Interest Retention Tax (DIRT) you have paid in Ireland for the 4 years before the year you apply. This refund counts against your deposit when buying your first home, as long as the property is newly-built and has never been previously used as a residential home. A comprehensive and detailed list of the eligibility requirements for the Help to Buy Scheme can be found here. 

Crucially, the HTB scheme can be used in conjunction with shared equity support schemes, such as the First Home Scheme. This is a shared equity scheme that, when used alongside Help to Buy, sees the government and participating banks pay up to 20% of the cost of your new home in return for a commensurate stake in equity. There is also the Affordable Purchase Scheme, an initiative wherein local authorities can make newly built homes available at a reduced price for first-time buyers.

If you want to specifically see how schemes such as Help to Buy can bring down your deposut, check out the Glenveagh Mortgage Calculator, which allows you to check your deposit and mortgage repayments based on the kind of schemes that you can plan to use. In many cases, the Help to Buy scheme can significantly reduce or indeed entirely take care of the deposit payment. 

Consider a two-bedroom home in Rath Rua, a new Glenveagh community in Portlaoise. The home purchase price is €305,000 and first-time buyers are required to have a deposit amounting to 10% of the property value (€30,500). With the Help to Buy scheme, you can get a maximum of €30,000 towards your deposit, leaving a remainder of just €500 to be paid out of your savings.

If you were buying a home in the Rath Rua community, you could have a two-bedroom house in your name while the deposit is mostly taken care of through a significant tax refund. 

How do I apply?

For the Help to Buy scheme, applications are submitted through the Revenue Online Service (ROS). You can start your application by clicking ‘Help to Buy applicant link’ on the ROS home screen. 

There are three stages to the application process. At the outset, you should be ready to provide evidence of your mortgage and a copy of the purchase contract, signed and dated by the vendor and all purchasers. In the second phase, you should be able to provide all relevant details pertaining to the property, purchase value or approved valuation, mortgage, shared equity (if applicable) and deposit. If you are applying with other people, you will also need to confirm the portion of the refund due to each person. As long as you are tax compliant over the last four years, Revenue aims provide you with a summary of the maximum refund available to you within around five working days.

After this is done, your application will finally be verified by a qualifying contractor, who you should provide with your Claim Reference Number (which you will have received after the making your claim) and Access Code (which you receive upon approval of your application). Once you’re approved, you’re ready to pay that deposit and get your hands on those keys.

If you’re interested in exploring beautifully designed communities in vibrant and well-connected towns across Ireland, visit Glenveagh.ie. Find out more about Help to Buy and other government support schemes at the Glenveagh Welcome Home Hub.