Trying to find the deposit for a new home has become harder due to rising house prices and the requirements of the bank. The First time buyer need to have 10% of the property value. So for a property of €200,000 you would need €20,000 deposit. This requires a lot of sacrifices for a first time buyers to gather the funds.
The Help To Buy (HTB) scheme that could entitle you to money towards your new home. It is designed to help first time buyer to gather the money for a deposit. This scheme applies to new homes and once-off self build home.
The HTP scheme provides you with a refund of income tax and Deposit Interest Retention Tax (DIRT) over a 4 year period. The scheme applies to properties built after the 19th July 2016.
The requirements are
- A first-time buyer who either buys or self-builds a new residential property between 19 July 2016 and 31 December 2019.
- If you signed a contract to buy a property (or drew down the first tranche of the mortgage for a self-build) before 19 July 2016, you will not qualify for this incentive.
- If you are buying (or self-building) the property with someone else, they must also be a first-time buyer. You will not qualify if you have previously bought or built a property, either individually or jointly with anyone else, even if you are now separated or divorced from that person.
- The incentive only applies to properties that are bought or built as the first-time buyer’s home. It does not cover investment properties. Cash buyers do not qualify.
- You must take out a mortgage of at least 70% of the purchase price (or, for a self-build, 70% of the valuation approved by the mortgage provider).
If you signed a contract to buy a property (or drew down the first tranche of the mortgage for a self-build) between 19 July 2016 and 31 December 2016, you may qualify for the Help to Buy incentive on a property costing up to €600,000.
With effect from 1 January 2017, the Help to Buy scheme only applies to properties costing €500,000 or less.
You must occupy the property for 5 years from the date that it is habitable.
Or talk to you financial advisor who will be able to guide you through the process.