Tuesday, 27 February 2018

Questions (748)

Maureen O'Sullivan

Question:

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]

View answer

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.