IDEAS home Printed from
   My bibliography  Save this paper

A financial stability perspective on the First Home shared equity scheme


  • De Burca, Orla

    (Central Bank of Ireland)

  • Kelly, Robert

    (Central Bank of Ireland)

  • O'Brien, Eoin

    (Central Bank of Ireland)


This Note outlines the interaction between the First Home scheme and the Central Bank’s macroprudential mortgage measures. Taking a financial stability perspective, it analyses the considerations, covering the implications for borrower resilience, bank resilience as well as credit and house price dynamics, that underpin the change in the mortgage measures regulations to clarify the ability of regulated mortgage providers to take part in the scheme. The implications for borrower and bank resilience are considered to be limited or (better) mitigated by other elements of the prudential framework. Nonetheless, as a measure which will boost the finance available to households to purchase a home the potential for creating upward pressure on house prices is present. The extent of this impact will depend on broader housing market conditions and given the anticipated size of the scheme the Central Bank judged that it would not be proportionate for the mortgage measures framework to altogether restrict lenders from participating in its introduction. Central to this judgement is the characteristics of this form of financing, other safeguards provided by prudential bank capital regulations and the Scheme’s initial scale and scope.

Suggested Citation

  • De Burca, Orla & Kelly, Robert & O'Brien, Eoin, 2021. "A financial stability perspective on the First Home shared equity scheme," Financial Stability Notes 12/FS/21, Central Bank of Ireland.
  • Handle: RePEc:cbi:fsnote:12/fs/21

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbi:fsnote:12/fs/21. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Fiona Farrelly (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.