Following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, a new loan offering - the Rebuilding Ireland Home Loan - was introduced on 1 February 2018.
It has been a feature of all local authority mortgage lending since 1987 that loan applicants must provide documentary evidence of being unable to secure sufficient finance from two financial institutions. There is no change to this requirement under the new Rebuilding Ireland Home Loan. The reason that such a requirement exists is that local authorities are not competing with commercial lenders, rather local authorities, as they have done for many years, are providing low cost and affordable mortgages to credit worthy first time buyers, who are unable to secure adequate loan finance from commercial lenders. It is only when an applicant has been offered an insufficient loan amount by two commercial lenders, that they may apply for a Rebuilding Ireland Home Loan.
My Department is not aware, either currently or historically, of difficulties arising for local authority applicants in securing the necessary evidence of inadequate loan offers from two financial institutions. Any applicant with concerns in this regard should contact the Housing Section of their local authority or the Rebuilding Ireland Homeloan helpdesk at (051) 349720.