A Comprehensive Guide to the Help to Buy Scheme in Ireland

Are you a first-time homebuyer with dreams of owning your own property? The Help to Buy scheme is a government initiative designed to make homeownership a reality for eligible buyers. In this article, we will simplify and clarify the information about the Help to Buy scheme, including its benefits, eligibility criteria, and the stages involved in the application and usage process. 

Whether you’re navigating the application process or seeking professional guidance, this guide will provide you with the necessary information to take advantage of this beneficial scheme.

What is the Help to Buy Scheme?

The Help to Buy scheme was introduced by the Irish government to support first-time buyers in purchasing a new-build or self-build property. Eligible buyers can receive a refund of income tax and Deposit Interest Retention Tax (DIRT) paid in Ireland over the previous four tax years, up to a maximum rebate amount of 10% of the purchase price of the property or €30,000, whichever is the lesser. The aim of the scheme is to ease the financial burden associated with buying a home.

Eligibility Criteria:

To qualify for the Help to Buy scheme, you must meet specific criteria. These include:

  • First-Time Buyer Status: You should not have previously purchased or built a residential property in Ireland or anywhere else in the world. If you’re purchasing a home with someone else, they must also be a first-time buyer.
  • Property Type: The scheme applies to new-build or self-build properties only. Second-hand homes are not eligible.
  • Purchase Price Limit: The maximum purchase price eligible for the scheme is €500,000. Properties priced above this threshold are not eligible for the tax rebate.
  • Occupancy Requirement: You must occupy the purchased property as your primary residence for a minimum period of five years.
  • Mortgage Amount: Applicants must be taking out a mortgage for a minimum of 70% of the purchase price.

Stages of Applying and Using the Help to Buy Scheme: 

  1. Application Stage:
  • Submit your application and select the years you wish to receive a refund for. This can be done through myAccount or Revenue Online Service (ROS), ensuring accuracy and completeness.
  • Once it is confirmed that you are tax compliant, an Application Number will be provided.
  1. Approval Stage:
  • Once your application is approved, you will be advised of the maximum amount available to you.

  1. Claim Stage:
  • Once you find a suitable property, you will need to provide the property address and purchase price, along with the builders details.
  • Provide evidence of your mortgage, such as a signed copy of the contract if purchasing a new property or proof of the initial mortgage drawdown and valuation report if self-building.
  • A Claim Number will be provided once the claim is submitted.
  1. Verification Stage:
  • The information and documentation provided during the claim stage will be verified by the qualified contractor (in the case of purchasing a new property) or your solicitor (if self-building).
  • If everything is in order, your application will progress to the next stage.
  1. Payment and Usage:
  • Once your application is fully processed and verified, the tax rebate will be paid.
  • The refund is paid directly to the builder for a new property purchase or to a bank account held with your loan provider if self-building.

How Lyons Financial Services Can Help:

At Lyons Financial Services, we understand that navigating the ins and outs of the Help to Buy scheme can be overwhelming. That’s why our team of expert advisors is here to guide you through the process. Here’s how we can assist you:

  • Personalised Financial Advice: Our knowledgeable advisors will assess your financial situation, helping you understand your eligibility for the scheme and determining the maximum tax rebate you could receive. Read more about our advise process here.
  • Mortgage Application Assistance: We will support you in applying for a mortgage, ensuring that all required documentation is in order and guiding you through the application process. Read more about our Complete Mortgage Service here.
  • Mortgage Options: With access to a wide range of mortgage providers, we will help you find the best mortgage option tailored to your unique circumstances, maximising your chances of approval.
  • Financial Planning: We can help you create a comprehensive financial plan, taking into account the Help to Buy scheme and other relevant factors. This will assist you in making informed decisions and securing your dream home.

Owning a home is a significant milestone, and the Help to Buy scheme in Ireland makes this dream more achievable for first-time buyers. With Lyons Financial Services by your side, you can take full advantage of the scheme’s benefits. Our dedicated team of mortgage advisors will provide personalised guidance and support throughout the process, ensuring a smooth journey toward homeownership. 

Contact Lyons Financial Services today and let us help you turn your dreams into reality.