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For prospective homebuyers purchasing a property can be financially challenging, especially for first-time buyers.  To support individuals and families in achieving homeownership, the Irish government offers several grants and financial assistance schemes.  These grants can make a significant difference in reducing costs, particularly for first-time buyers, those interested in energy-efficient homes, or those seeking to renovate older properties. This article outlines the main grants available from a purchaser’s perspective.

1. Help to Buy (HTB) Scheme

The Help to Buy (HTB) Scheme is a popular initiative designed to assist first-time buyers in purchasing or building a new home. It provides a tax rebate on Income Tax and Deposit Interest Retention Tax (DIRT) that the applicant has paid over the previous four tax years.

• Eligibility: Only first-time buyers of newly built homes or those building their own home can apply. The property must be their primary residence.
• Grant Amount: The maximum rebate available is the lesser of €30,000 or 10% of the property’s purchase price, capped at €500,000.
• Application Process: Applicants must complete an online application on the Revenue website. It’s crucial to ensure that the builder is registered with Revenue to participate in the scheme.

This scheme is particularly valuable for those struggling to meet the deposit requirements of mortgage lenders, as the rebate can significantly boost the initial down payment.

2. Local Authority Home Loan

The Local Authority Home Loan is a government-backed mortgage available to first-time buyers and “fresh start” applicants (i.e., individuals who previously owned a home but have gone through a divorce, separation, or bankruptcy).

• Eligibility: Income limits apply. This loan is available for new, second-hand, and self-build properties.
• Loan Amount: The loan covers up to 90% of the purchase price for properties priced under €320,000 (in designated urban areas) or €250,000 elsewhere. Interest rates are set by the local authority, with a maximum term of 30 years.

This scheme is ideal for those who may struggle to secure a mortgage from private lenders, as the local authority may offer more favourable terms.

3. First Home Scheme (FHS)

Launched in July 2022, the First Home Scheme (FHS) is designed to help first-time buyers bridge the gap between their mortgage and the cost of a new home. Under this shared equity scheme, the government provides part of the funding required for the purchase.

• Eligibility: Available for first-time buyers purchasing new homes from developers. The property must fall within regional price caps, which vary across the country.
• Grant Amount: The government can provide up to 30% of the purchase price (or 20% if the buyer is also availing of the HTB Scheme).
• Repayment: While no interest is charged on the equity stake for the first five years, the government will hold a share in the property’s value. Homeowners can buy out the government’s stake over time.

This scheme is especially useful for those whose mortgage and deposit do not fully cover the purchase price.

4. Vacant Property Refurbishment Grant

The Vacant Property Refurbishment Grant is designed to bring vacant and derelict properties back into use by offering financial assistance to homebuyers for refurbishment.

• Eligibility: The property must have been vacant for at least two years and built before 1993. Applicants must intend to live in the property as their primary residence.
• Grant Amount: Up to €50,000 is available for refurbishing vacant properties, and an additional €20,000 may be granted if the property is deemed derelict (structurally unsound).
• Application Process: Applications are made through local authorities, and the grant must be used to cover structural works, rewiring, plumbing, or other necessary upgrades.

This grant is a great option for buyers interested in restoring older properties, especially in towns and rural areas where vacant properties are more common.

5. SEAI Home Energy Grants

While not a direct grant for property purchasers, the Sustainable Energy Authority of Ireland (SEAI) offers a range of grants to homeowners who wish to improve the energy efficiency of their homes. These grants can be accessed post-purchase, especially if buyers are looking to reduce their energy bills and carbon footprint.

• Available Grants: The SEAI provides grants for home insulation, heating systems, solar panels, and heat pumps. For example, up to €6,000 is available for external wall insulation, and up to €2,400 for solar photovoltaic (PV) panels.
• Eligibility: Homeowners of properties built and occupied before 2011 (for insulation and heating grants) or before 2021 (for renewable systems) can apply.

Purchasers of older homes can benefit from these grants, making their new property more energy-efficient and lowering future energy costs.

Conclusion

There are several grant schemes that can significantly reduce the financial burden on residential property purchasers. Whether you are a first-time buyer seeking to reduce your deposit through the Help to Buy Scheme, exploring the First Home Scheme to bridge your mortgage gap, or interested in restoring a vacant property using the Vacant Property Refurbishment Grant, there are options to help make homeownership more accessible.

If you are planning to purchase or refurbish a home in Ireland, it’s worth exploring which grants and schemes apply to your circumstances.