Dáil Éireann Debate, Thursday - 30 July 2020
432. Deputy John Lahart asked the Minister for Housing, Planning and Local Government the criteria for a single person who wishes to avail of first-time buyers' assistance; the way in which eligibility of an applicant is determined; if there are exceptions for applicants who already have an interest in a property; and if he will make a statement on the matter. [19615/20]
View answerMy Department operates the Rebuilding Ireland Home Loan, which is targeted at first time buyers who wish to own their own home, have access to an adequate deposit and have the capacity to repay a mortgage, but who are unable to access a mortgage sufficient for them to purchase their first home. As part of the eligibility criteria applicant(s) of the Rebuilding Ireland Home Loan must have received insufficient offers of finance from two mortgage lenders to apply for a Rebuilding Ireland Home Loan. The loan enables credit worthy first time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range.
To be eligible for a Rebuilding Ireland Home Loan you must:
- be a first-time buyer;
- be aged between 18 and 70 years;
- be in continuous employment for a minimum of two years, as the primary earner or be in continuous employment for a minimum of one year, as a secondary earner- some flexibility on this provision has been provided arising out of COVID-19 for applicants in receipt of the temporary wage state subsidy (TWSS) and pandemic unemployment payment (PUP);
- have an annual gross income of not more than €50,000 as a single applicant or not more than €75,000 combined as joint applicants;
- submit two years certified accounts if self-employed;
- provide evidence of insufficient offers of finance from two banks or building societies;
- not be a current or previous owner of residential property in or outside the Republic of Ireland;
- occupy the property as your normal place of residence;
- purchase or self-build a property situated in the Republic of Ireland of no more than of 175 square metres (gross internal floor area);
- purchase or self-build a property which does not exceed the maximum market value applicable for the county in which it is located;
- consent to an Irish Credit Bureau check.
Eligibility is subject to submission of a complete Rebuilding Ireland Home Loan application form and confirmation by your local authority.
Applicants who are separated or divorced may be treated as first-time buyers, in accordance with the regulations, if they meet certain conditions, including:
- they are separated or divorced under a court order or by a separation agreement;
- the property being purchased is the first property since leaving the family home;
- they have left the family home and retain no interest in it; or
- the other party has remained in the family home.
In meeting the conditions as set out above, in particular that the other party has remained in the family home and that the potential applicant has relinquished any rights they had over that property, no financial gain should have been made by the potential applicant in exchange for relinquishing their rights to the property in this manner. Were the individual to have made a financial gain in releasing their rights to the property, such as being bought out by the other party who remains resident in it, they would be deemed to have been compensated for their interest in the property, and therefore not be eligible as a first-time buyer.
The final decision on loan approval is a matter for the relevant local authority and its credit committee on a case-by-case basis. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and the lending local authorities.
Further information on the scheme is available on the dedicated website www.rebuildingirelandhomeloan.ie
The availability of the Help To Buy Scheme for first-time-buyers, which is a policy of the Department of Finance, offers additional assistance to purchasers of newly built properties. Further information is available from revenue.ie
