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5 Benefits Of The Help To Buy Scheme For First-Time Homebuyers
Exploring the benefits of the Help to Buy Scheme can be a game-changer for many individuals and couples hoping to purchase their dream home in Ireland. Designed to ease the financial burden of securing a deposit for a new property, this government incentive makes it easier for aspiring homeowners to take those initial steps onto the property ladder.
The initiative is tailored towards first-time buyers, offering a helping hand with the deposit for a self-build or a new house or apartment. It’s a straightforward support system aiming to make homeownership more accessible – which is exactly what it has done for a high percentage of applicants. A recent report on the scheme’s progress revealed that out of the 46,101 Help to Buy claims that have been made to date, 45,180 have been approved.
In this article, we explore the five key benefits of the Help to Buy Scheme for those ready to make one of life’s biggest investments.
#1 – Financial support for your deposit
Buying a brand-new home – or indeed choosing a self-build project – comes with a hefty price tag, particularly in today’s market. The Help to Buy Scheme eases the financial blow of such a substantial investment by enabling successful applicants to avail of an income tax and DIRT refund, which can be claimed for the previous four years. This can provide a substantial boost to an avid saver’s deposit fund.
What’s more, in certain circumstances the initiative provides financial relief of up to €30,000 (or 10% of the purchase value). This level of support can make a significant difference to potential buyers with their sights set on a property that may be just outside of their budget limit.
#2 – Increased property eligibility
Whether a buyer has their sights set on a pristine, turnkey new build, or they have dreams of building their dream home from scratch, the Help to Buy Scheme covers all angles.
The support available through the incentive applies to self-build and new homes with an approximate value of €500,000. This high ceiling means that many properties are eligible, giving buyers a larger pool of options to choose from.
#3 – Eligibility criteria simplified
When it comes to the rules and regulations of applying for the scheme, applicants will be relieved to hear that the criteria are clear and simple. This scheme is exclusively for those buying their first home, keeping the focus on helping newcomers to the property market.
Another key condition is that successful claimants are required to occupy the new property within two years of its purchase, and it must remain as their primary residence for a minimum period of five years. This requirement is to ensure that the scheme benefits genuine homeowners.
#4 – Loan-to-value ratio consideration
On the subject of qualifying criteria, it’s important not to overlook the fact that the scheme considers the loan-to-value ratio, stipulating that the mortgage must cover at least 70% of the property value.
Furthermore, when calculating the mortgage that will be needed, it’s important to remember that equity funding should not be included. This is because the scheme doesn’t count equity funding, instead focusing on the real value of the loan in question.
#5 – Extended scheme duration and further supports
In Budget 2024, the Help to Buy Scheme was extended to 31 December 2025. It has since become known as the Enhanced Help to Buy Scheme, giving aspiring homeowners more time to make use of its benefits, and offering a larger window to plan and purchase.
Aside from this notable extension period, the list of financial supports available to first-time buyers was recently bolstered even further by another incentive – the Local Authority Affordable Purchase Scheme, which helps people on moderate incomes to buy new homes at reduced prices. Both Help to Buy and the Affordable Purchase Scheme can be used together, offering greater possibilities to those wishing to buy their first home.
Explore the benefits of the Help To Buy Scheme today
Buying your first home is a significant step full of excitement, but also understandably daunting due to the financial and bureaucratic hurdles involved. The Help to Buy Scheme is on hand to simplify the process, offering solid support to thousands of first-time buyers.
Reap the benefits of the Help to Buy Scheme with our expert guidance
As mortgage experts, we recommend taking a closer look at this scheme, understanding how it works, and considering how it can fit into your home-buying plans. Our team at Symmetry Financial Management is here to help, providing clear, tailored mortgage advice to navigate the home-buying process.
Getting to grips with the financial aspects of buying a home is crucial. Working with our advisors, you’ll get insights into the best ways to benefit from schemes like Help to Buy. Contact us today to see how we can help you make your dream home a reality.
If you’d like a free, no-obligation consultation for your mortgage, pension or financial needs, get in touch here, call us on 01 6831673 or email us directly on info@symmetryfinancial.ie.
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