Housing Minister Darragh O’Brien TD formally launched the First Home shared equity scheme, a new €400 million initiative designed to support first-time buyers on moderate incomes to buy new houses and apartments, on 7 July 2022.
Commenting on the launch, Cairn’s Director of Customer, Sarah Murray said “the First Home initiative is a much-needed scheme to bridge the affordability gap for those who want to get their foot on the first step of the property ladder and buy their first home. First time buyers are our core market, and having sold over 3,000 first time buyer homes since 2016, we are acutely aware of the challenges which prospective homeowners face in trying to access mortgage finance. We believe the First Homes initiative will be impactful in supporting these prospective homeowners to realise their homeownership ambitions. As we continue our regional expansion, we look forward to delivering new homes for first time buyers utilising the Homes First initiative."
The initiative, in which AIB, Bank of Ireland and Permanent TSB are participating with the Government, will see the Scheme take up to a 30% minority equity stake (reducing to 20% if the purchaser can avail of the Help to Buy initiative under which applicants can claim relief of up to €30,000) and assist with part of the purchase price for their home.
Years 1 -5 of the equity loan are interest free, with interest of 1.75% payable in years 6 -15, increasing to 2.15% years 16-29 and 2.85% thereinafter – interest payments can be deferred and repaid on redemption of the equity share.
The scheme is expected to support the purchase of up to 8,000 new homes over the next 4 years.