A SCHEME TO help people cover the cost of their home has reached its 5,000th home purchase, with another 4,000 applicants approved.

The First Home Scheme was set up by the last government to provide funding to first-time buyers who are unable to get their house over the line despite having a deposit and mortgage approval in place.

It’s open to people looking to buy a new home or build their first home.

The difficulty for prospective homeowners was laid bare in figures last week showing that the median cost of buying a home in Dublin last year was €500,000, and it stood at €387,000 nationally.

According to the operators of the scheme, almost four-in-ten of all scheme-assisted purchases have taken place in the last year.

A total of over €330 million has been provided in support to people who have bought or self-built their homes via the programme since it was set up in July 2022.

How the First Home Scheme works

The scheme provides financial support to homebuyers who could not otherwise complete their home purchase or new-build after combining their available mortgage and deposit.

It works by ‘bridging the gap’ between the available mortgage, deposit and the price of the new home.

The scheme is a joint venture between the State and three main banks, AIB – including subsidiaries EBS and Haven – as well as Bank of Ireland and PTSB. It remains open to other authorised mortgage lenders in the Irish market to join the scheme.

If a buyer satisfies eligibility criteria and receives mortgage approval from a participating lender, then that buyer will automatically qualify for the Scheme.

Minister for Housing, Local Government and Heritage James Browne said that the scheme is helping the Government to “support more people on their path to owning a home”, helped by the “unprecedented” levels of funding provided.

“The fact that more than a third of the 5,000 homes purchased, with the support of the Scheme, took place in the last year demonstrates its growing popularity and effectiveness,” Browne said.

First Home Scheme chief executive Michael Broderick paid credit to lenders who participate in the scheme and to the Department of Housing.

“I am proud of the fact that, by bridging funding gaps for first-time buyers and fresh start applicants, we are making a major difference to many people’s lives by giving them an opportunity to become homeowners,” Broderick said.