How to Combine Help to Buy and First Home Scheme in Ireland — What Changes

You can combine Help to Buy and the First Home Scheme in Ireland — but doing so reduces the maximum FHS equity stake from 30% to 20% of the property value. This is the single most consequential rule that buyers combining these two schemes fail to account for, and it is not mentioned on either scheme's Citizens Information page when read independently. The FHS cap reduction changes the total support calculation significantly: whether the combined HTB refund plus 20% FHS produces more or less than 30% FHS alone depends entirely on your specific HTB claim amount and purchase price. This page explains the mechanics, worked examples, and the three scheme combinations that are blocked entirely.

The Compatibility Matrix: What Combines and What Does Not

Before modelling any specific scenario, the complete four-scheme compatibility picture:

The two hard incompatibilities are:

• FHS + LAHL: completely prohibited — you cannot use the First Home Scheme and the Local Authority Home Loan simultaneously
• FHS + Affordable Purchase: also incompatible — FHS cannot be combined with LAAPS

If you have been researching both FHS and LAHL as your strategy, you need to choose between them. There is no workaround.

How the HTB + FHS Combination Works

When you use both schemes together, two things happen simultaneously:

1. Help to Buy refunds up to €30,000 in income tax and DIRT you have paid over the previous four tax years. This refund counts toward your deposit.

2. Because HTB has contributed to your deposit, the First Home Scheme treats your shortfall as smaller — so it provides a smaller equity stake. The scheme rules cap this combined stake at a maximum of 20% of the property value rather than 30%.

The underlying FHS mechanism does not change: the scheme still covers the gap between your maximum mortgage plus deposit and the purchase price of your new build. The cap is simply lower when HTB is in the picture.

Worked Example: HTB + FHS Combination vs FHS Alone

Buyer profile: Couple with combined gross income of €85,000. Maximum standard LTI mortgage: €340,000 (4.0x). Deposit saved: €30,000. Target property: new build priced at €450,000.

Without any scheme:

• Maximum mortgage: €340,000
• Deposit: €30,000
• Total: €370,000
• Shortfall from €450,000: €80,000

Option A: FHS alone (no HTB)

• FHS covers up to 30% of €450,000 = €135,000
• Required gap: €450,000 − €340,000 − €30,000 = €80,000
• FHS provides €80,000 (well within the 30% cap)
• Result: purchase proceeds at €450,000

Option B: HTB + FHS combined

• HTB refunds, say, €20,000 (based on four years of income tax contributions)
• Updated deposit: €30,000 + €20,000 = €50,000
• Remaining gap: €450,000 − €340,000 − €50,000 = €60,000
• FHS cap with HTB combination: 20% of €450,000 = €90,000
• FHS covers the €60,000 shortfall (within the 20% cap)
• Result: purchase proceeds at €450,000

In this scenario, Option B (HTB + FHS) produces the same outcome — the purchase goes ahead — with less FHS equity taken. This is generally the better outcome: a smaller equity stake means lower service charges from year six, and a smaller equity buyout cost when the market value rises.

When Option A beats Option B: If your HTB claim is very small — say €5,000, because you have not paid much income tax — the 20% FHS cap may actually become a constraint. In the example above, if HTB only provides €5,000, the gap becomes €450,000 − €340,000 − €35,000 = €75,000. FHS at 20% caps at €90,000, so the gap is still covered. But for higher purchase prices or lower deposits, the reduced cap can matter.

The critical point: the calculation is specific to your income, your four-year tax history, your deposit, and your target property price. The worked examples in the Ireland First-Time Home Buyer Guide model this for the common income and price combinations that Irish first-time buyers face in 2026.

The FHS Service Charge: What Combining Schemes Means Long-Term

The First Home Scheme is interest-free for years one through five. From year six, service charges apply on the original cash amount the scheme provides:

The equity buyout cost rises with market value. If FHS provided €60,000 on a €450,000 property (a 13.3% equity stake), and the property is later worth €550,000, the buyout cost is €73,150 (13.3% of €550,000) — not €60,000.

This is why a smaller FHS stake (which HTB enables by reducing the shortfall) is generally preferable: lower service charges each year, and a lower percentage of future market value to buy out. Using HTB to reduce the gap before FHS steps in is not just about making the initial purchase work — it is about minimising the long-term equity obligation.

The FHS Rules That Block Other Combinations

FHS requires standard LTI borrowing. You must borrow the maximum amount available to you under the 4.0x standard LTI rule before FHS will cover the remaining gap. If your lender has approved you for 4.5x as an exception, you are ineligible for FHS — the scheme's purpose is to bridge the gap between standard borrowing capacity and purchase price, not to subsidise above-standard borrowing.

FHS is new builds and self-builds only. Like HTB, the First Home Scheme does not apply to second-hand homes. Both schemes are designed to incentivise new housing supply. If your target property is a second-hand home, neither HTB nor FHS is available to you.

FHS property price caps. The scheme applies to homes within specific regional price limits. Buyers should verify the current cap for their local authority area, as these are subject to periodic revision.

The HTB Rules That Affect the Combination

HTB is a tax refund, not a grant. The maximum refund is the lower of: €30,000, 10% of the purchase price, or the total income tax and DIRT you paid in the four tax years before your application. PAYE employees who have been working and paying full income tax for four or more years typically claim the maximum. Lower earners or those with shorter tax contribution histories may claim significantly less.

HTB requires a minimum 70% LTV mortgage. Your mortgage must cover at least 70% of the purchase price. For most buyers combining HTB with FHS, this is not a binding constraint — the FHS itself covers the portion above your standard mortgage, so the combined loan-to-value is high.

HTB requires five years as primary residence. If you sell or move out before five years, Revenue can claw back the refund on a pro-rata basis. This applies regardless of whether you also used FHS.

Three Scheme Combination Rules to Apply Before Choosing

Rule 1: If you are considering FHS, do not pursue a mortgage exception. The schemes are mutually exclusive. Decide first whether FHS or a commercial exception gives you a better outcome at your income level, then apply accordingly.

Rule 2: If you are considering both FHS and LAHL, choose one. They are incompatible. If you earn below the LAHL joint cap of €85,000, model LAHL against FHS and compare the total cost over 10 to 15 years before deciding.

Rule 3: If you are combining HTB and FHS, verify the adjusted cap does not constrain you. The 20% FHS cap is typically sufficient, but for higher-priced properties or lower HTB claims, it is worth verifying that the reduced cap still covers your shortfall.

Who This Is For

• First-time buyers targeting a new build in Ireland who qualify for both Help to Buy and the First Home Scheme and want to understand the interaction before applying
• Buyers who have heard that combining HTB and FHS "reduces the FHS" but do not know by how much or what that means in practice
• Anyone trying to decide between FHS at 30% (no HTB) and HTB + FHS at 20%, where the right answer depends on their specific HTB refund amount
• Buyers confused about why FHS and LAHL cannot be used together, or FHS and the Affordable Purchase Scheme cannot be combined
• Anyone who was told "you can combine the schemes" by a developer or estate agent without being told about the compatibility restrictions

Who This Is NOT For

• Buyers targeting second-hand homes — neither HTB nor FHS applies to second-hand purchases
• Buyers who have already confirmed their scheme strategy with an independent financial advisor
• Anyone whose borrowing capacity without any scheme already reaches the target property price

Frequently Asked Questions

Does combining Help to Buy and First Home Scheme always reduce my support?

Not necessarily. The reduction in FHS equity from 30% to 20% is offset by the HTB refund increasing your deposit. In most cases the net effect is that you take less FHS equity (smaller long-term obligation) and use HTB cash instead, which is structurally better. The combination only becomes disadvantageous if the HTB refund is very small and the reduced 20% FHS cap no longer covers your remaining shortfall.

Can I use the First Home Scheme and the Local Authority Home Loan together?

No. These two schemes are mutually incompatible. If you are researching both, you must choose one. The LAHL is a state-backed direct mortgage (not equity sharing) at fixed rates of 4.00% to 4.05%, with a joint income cap of €85,000 and updated 2026 price ceilings. FHS is equity sharing, available through commercial banks, with no income cap but a requirement to borrow at standard LTI. The guide models both pathways so you can compare them.

What happens to the FHS equity stake if my property value increases?

The service charge is calculated on the original cash amount the scheme provided. But the buyout cost (if you later want to purchase the equity back) is based on the current market value of your home at the time of buyout. If FHS provided €60,000 representing 13.3% of a €450,000 purchase, and the home later sells or is valued at €600,000, the buyout is €79,800 (13.3% of €600,000). This is why minimising the FHS equity stake — by using HTB to reduce the shortfall first — reduces your long-term exposure.

Can I apply for a mortgage exception and then switch to First Home Scheme?

No. If you apply for and receive a lender exception above 4.0x LTI, you are ineligible for FHS. The FHS eligibility assessment looks at your actual borrowing level relative to your maximum standard LTI. To qualify for FHS, your mortgage application must be at the standard 4.0x limit, not above it. This is why the scheme-or-exception decision must be made before, not after, submitting your mortgage application.

Does the First Home Scheme price cap change for properties near Dublin?

The FHS has regional property price caps that are reviewed periodically. These caps determine the maximum eligible purchase price in each area. Check the current caps on the First Home Scheme's official website before committing to a property, as regional limits vary and have been revised as house prices have increased. The Ireland First-Time Home Buyer Guide covers the current 2026 caps for major metro areas alongside the LAHL regional price ceilings.

What is the maximum I can get from HTB and FHS combined?

Help to Buy is capped at the lower of €30,000, 10% of the purchase price, or four years of income tax and DIRT. First Home Scheme, when combined with HTB, is capped at 20% of the property value. On a €450,000 new build: maximum HTB of €30,000 plus maximum FHS (at 20%) of €90,000 = €120,000 in combined support, subject to both schemes confirming your full shortfall is covered. At 30% FHS alone (no HTB), the FHS maximum would be €135,000. Which is better depends on the size of your actual HTB claim relative to the 10% FHS cap reduction.

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