Help to Buy Scheme Cork

The First Home Scheme Explained

The Help to Buy (HTB) scheme is an incentive to assist first time purchasers in purchasing their new build home. The scheme refunds Income Tax and Deposit Interest Retention Tax (DIRT) paid by the applicant in the four years preceding the applicant’s application.

The maximum relief available is €30,000. HTB is not available for properties with a sales price of greater than €500,000.

To avail of the HTB, you must take out a mortgage with a qualifying lender with a loan to value ratio of at least 70%.

At Fachtna O’Driscoll Solicitors Cork we have assisted many purchasers in the acquisition of new build properties. Recently, there has been an increase in the number of purchasers availing of shared equity schemes. Unfortunately, some shared equity amounts, such as those under the First Home Scheme, do not form part of the loan to value ratio and consequently preclude many purchasers from claiming the HTB.

Effective from 11th October 2023, funding received from the State as part of a shared equity scheme will be included as a loan when calculating the 70% loan to value ratio. This comes as a welcome relief to many of our clients purchasing their properties with the assistance of their Local Authority’s Affordable Dwelling Purchase Scheme.

The conveyancing team at Fachtna O’Driscoll Solicitors Cork are specialised in dealing with the help to buy scheme, property acquisitions, shared equity schemes and the HTB. To find out more about our conveyancing service read here.