Government Schemes for First-Time Buyers Donegal

by | May 11, 2023 | Mortgage Tips

Government Schemes First Time Buyers Donegal

Government Schemes for First-Time Buyers Donegal

Ever wonder if there are Government schemes available for first-time buyers Donegal?  Are you one of the first-time buyers in Ireland experiencing the lack of available properties in your desired area or price range? This can be frustrating, leading to disappointment when you can’t find a suitable home that meets their needs and budget. The length of time it takes to complete the home-buying process is also a concern for many, from finding the right property to navigating the legal and financial aspects of the transaction. 

Despite these challenges, with the right support and guidance, first-time buyers can overcome these obstacles and achieve their goal of owning a home.

That’s what we are here for. Learn more tips to make buying your first home exciting and less or totally not a daunting process.

Government schemes are available for first-time buyers in  Donegal & Ireland 

In order to help make the process of buying their first home more affordable and accessible. Here are some of the most well-known government schemes:

Help to Buy scheme: 

First-time buyers can claim a tax rebate of up to 10% of the purchase price of a new home, up to a maximum of €30,000. To qualify, you must be a first-time buyer who is purchasing a new property that costs less than €500,000. You must also be able to provide proof that you have been paying income tax and/or USC for at least four years. This can also be used if you are building your own home. 

Local Authority Home Loan Scheme: 

This offers low-interest rate mortgages to eligible applicants. First-time buyers can borrow up to 90% of the market value of a property, with repayments fixed for up to 25 years. To qualify, you must be a first-time buyer who is unable to secure a mortgage from 2 retail lenders, and your total household income must not exceed €50,000 per year for an individual applicant or €75,000 for a combined application every year. You will be required to show refusal from 2 mortgage lenders. 

 First Home Scheme (FHS)

The First Home Scheme (FHS) was launched as part of the “Housing for All Strategy” announced by the Government in September 2021. The Scheme is being developed in partnership between the State and the retail banks in Ireland represented by the Banking and Payments Federation Ireland (BPFI), Permanent TSB, AIB, Bank of Ireland, Haven Mortgages, EBS. (Haven Mortgages & EBS are part of the AIB group)
The aim of the Scheme is to bridge the funding gap for eligible first-time buyers between their deposit and mortgage, and the price of the new home (within price ceilings established across the country).

The First Home Scheme is not a loan as principal repayments are required, and it is not a regulated product. The property you buy must be a newly built home in a private development


Local authority home loan schemes: 

Some areas of Ireland offer affordable home loans to first-time buyers who are unable to secure a mortgage from a retail bank. These loans typically have lower interest rates and more flexible repayment terms than traditional mortgages.

It’s important to carefully research and compare different options before making a decision, and to seek professional advice from a mortgage broker or financial advisor.

Other considerations for first-time buyers in Ireland:

Central Bank rules: 

The Central Bank of Ireland requires first-time buyers to have a deposit of at least 10% of the property value. Even when using Government schemes.
The max lending amount is 4 times earnings, other loan repayments and financial commitments can lower this figure.

Stamp Duty: 

First-time buyers are eligible for a reduced rate of stamp duty, with a rate of 1% applying to properties valued up to €1 million.

In conclusion, first-time buyers in Ireland have access to several government schemes and alternative options that can make buying their first home more affordable and accessible. It’s important to carefully consider all options and seek professional advice to make the best decision for your individual circumstances.

Recommendation on Application for Mortgage

The best recommendation is by far to get guidance from a source not connected to the lenders. The ideal person to provide this advice is a financial broker/mortgage broker (like us). Many people talk themselves out of a mortgage by contacting lenders directly without first seeking guidance. I advise you to consult with me before making any mortgage financial choices since the material above is provided for informational purposes only and in no way represents financial advice. I advise using a comprehensive strategy when making financial plans, and I can assist you in implementing your ideas.

Make Sure to Find A Mortgage Guidance

When looking for a Mortgage in Letterkenny, Donegal, and Ireland, engaging a mortgage broker might provide a number of advantages and valuable benefits. Some benefits of hiring Mortgage Brokers and Advisors are: offering access to a wide range of lenders, helping you save time and effort, providing expertise and knowledge, negotiating power, and personalised mortgage service. Make an appointment with a Pascal as you seek to find a mortgage in Donegal. Speaking with us right now. We are available to assist you with your Mortgage concerns and worries. Ask us questions about mortgages. We cover first-time buyers’ mortgages, remortgage or switcher mortgages, self-build mortgages, investor or property mortgages, and more. Contact in Letterkenny, Co Donegal, or by phone at 074 91 03938. The Central Bank of Ireland regulates Mortgage Broker Services companies in the country.

Warning: If you do not keep up your Mortgage Donegal repayments you may lose your home

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