Does the Help-To-Buy increase mean we don’t need a deposit?

The Help to Buy Scheme has increased to 10% and will now cover up to €30,000 of your deposit. So does this mean you don’t have to save for a deposit at all?
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The Help To Buy Scheme allows first time buyers to claim back up to 10% (to a maximum of €30,000) in the form of  a refund of income tax and DIRT paid over the previous four years. Formerly set at 5%, the new increase was introduced as part of the government’s July Jobs Stimulus package. It’s a temporary measure expected to remain in place until the end of 2020, at which point the scheme will return to 5%.

Update: Budget 2021 sees the Help-To-Buy scheme, including the increase to 10%, extended until the end of 2021.

Example

House Price10% DepositLess HTBSavings RequiredMonthly Repayments*
€250,000€25,000€25,000€0€865

Based on 90% mortgage amount over 30 years at a rate of 2.3%. These are estimates only. Interest rate example provided by Campion Insurance.

So no deposit required?

Unfortunately it’s not that simple! While, in theory you can avail of the Help to Buy Scheme and receive the full deposit, you still need to get mortgage approval! Therefore it is strongly advised that you would have a minimum of €5000-€10,000 in regular savings that demonstrates an ability to repay the loan.

The good news is that you can now spend some of those hard earned savings on kitting out your beautiful new home! Here’s some inspiration in the form of our stunning new CGI show house! 

More information about the Help to Buy Scheme

To find out more about the Help To Buy Scheme, if you qualify or how to apply please head over to our Alder Homes HTB page to find out more. 

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