Affordable Purchase Scheme

What it is:

The Affordable Purchase Scheme is designed to assist people in buying their own home. Particularly for those who may not be able to afford a home at its full market value.

It allows buyers to purchase newly built homes at a reduced price, with the local authority holding a percentage equity share in the property.

Who it’s for:

The scheme is for people who are not able to secure a 90% mortgage from a lender based on their income. To be eligible for this scheme you must be over 18 years old, be a first-time buyer or qualify under the Fresh Start principle.

You also must have a right to reside in Ireland, and the purchased property must be your primary residence.

How it works:

Reduced purchase price: Local authorities offer access to affordable homes at prices lower than their market value.
Equity share: because you are buying the property at a reduced price, the local authority takes a percentage of ownership (equity share) in the home. This is equal to the difference between the market value and the reduced price paid by the buyer.
Affordable dwelling contribution: The local authority provides a monetary contribution towards the purchase. This is based on the difference between the maximum mortgage capacity, deposit, and savings of the buyer, and the open market value of the home. This contribution represents the equity share retained by the local authority.
Redemption of equity share: Buyers can choose to redeem or “buy out” the equity share at any time, but there is no obligation to do so. Certain events, such as selling the home, may trigger the local authority to request redemption of their equity share.
Financing: Buyers can secure funding from mainstream lending institutions (banks or credit unions) or through a Local Authority Home Loan.

Application process:

Eligibility assessment: Applicants will be assessed on things like being a first-time buyer, having a right to reside in the state, and meeting minimum deposit requirements.
Application submission: Applications are typically submitted online through the local authority’s platform.
Documentation: You will need to submit some documents to apply for the scheme. For example, proof of identity, income, residency, savings/deposit, and mortgage approval in principle.
Assessment and decision: The local authority assesses applications based on regulations and their Scheme of Priority. Successful applicants are offered properties based on suitability and availability.

More information on the Affordable Purchase Scheme.

The Affordable Purchase Scheme offers a pathway to home ownership for individuals who may face financial barriers. By offering reduced prices and equity shares, it helps buyers to bridge the gap between what they can afford and the market value of a home. Eligible applicants can apply through their local authority’s online platform and when approved, take the first step towards owning their own home.