The Home Choice Loan (HCL) is a mortgage for first time buyers that was introduced in 2009 and is provided by local authorities.
The terms and conditions of this loan are set out in the specific regulations – the Housing (Home Choice Loan) Regulations 2009 – a copy of which is available at http://www.irishstatutebook.ie/eli/2009/si/544/made/en/print. The loan is available to first time buyers who can prove that they have been refused a loan from 2 financial institutions. It provides up to 92% of the market value of a property purchased up to a maximum loan amount of €285,000. The loan is a normal capital and interest bearing mortgage. It is offered at a single, competitive variable interest rate. The rate is currently set at 3.50% . Further details in relation to the Home Choice Loan can be found at http://www.homechoiceloan.ie/.
The loans are made and administered by four lead local authorities - Dublin City Council, Cork City Council, Kilkenny County Council and Galway County Council - that operate on behalf of all other local authorities . To support local authorities in operating the HCL in a consistent and efficient manner, the Housing Agency provides a central underwriting service to local authorities. This shared central service processes loan applications, carries out credit checks and issues a recommendation to the local authority on each loan application in accordance with the credit policy. The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis and in accordance with the statutory Credit Policy that underpins the scheme. There may be a variety of reasons why an applicant is not successful in securing mortgage approval under the scheme, including not meeting the income requirements or a lack of a credible saving record.
Since the Home Choice Loan scheme commenced in 2009, 21 Home Choice Loans have been issued with a total value of €3,931,755. Information on loans issued over the last three years is set out in the following table.
I will continue to keep the operation of the HCL under review.
Year
|
No. of Home Choice Loans issued
|
€m
|
2013
|
1
|
0.276
|
2014
|
2
|
0.318
|
2015
|
0
|
0
|
Total
|
3
|
0.594
|