Tuesday, 27 February 2018

Questions (748)

Maureen O'Sullivan


748. Deputy Maureen O'Sullivan asked the Minister for Housing, Planning and Local Government his plans to extend the Rebuilding Ireland home loan scheme in view of demand; and if he will make a statement on the matter. [9780/18]

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Written answers (Question to Housing)

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.

Funding of €200 million for the new Rebuilding Ireland Home Loan has been raised by the Housing Finance Agency (HFA) on a fixed rate basis for periods out to thirty years maturity. Based on the pricing achieved, local authorities can offer a first tranche of fixed-rate annuity finance to eligible borrowers at rates of 2.0% and 2.25% per annum, for terms of up to twenty five and thirty years respectively, up to an aggregate maximum of €200 million.

As the available funding under the first tranche reduces towards €50 million, the HFA will access new funding at the prevailing rates in the market and will make available a second tranche to local authorities which will be accessed once the first tranche is fully advanced.