Dáil Éireann Debate, Wednesday - 13 January 2021
352. Deputy Matt Carthy asked the Minister for Housing, Local Government and Heritage if he plans to provide specific supports for first-time buyers to allow families to purchase second-hand properties in areas in which the level of new home construction is very low; and if he will make a statement on the matter. [1096/21]
View answerFrom a broad policy perspective and in a supply constrained environment, the provision of purchaser supports is prioritised towards new build homes and to encourage the wider increase in the available housing stock. However, in purchasing new build, self-build or second hand homes, eligible first time buyers can avail of support which currently exists in the form of the Rebuilding Ireland Home Loan (RIHL).
The RIHL is a Government backed mortgage for first time buyers. It has been available nationwide from all local authorities since 1 February 2018. It 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. The loan is a normal capital and interest-bearing mortgage which is repaid by direct debit on a monthly basis.
A person can borrow up to 90% of the market value of the property and the maximum market values of the property that can be purchased or self-built are:
- €320,000 in the counties of Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and
€250,000 in the rest of the country.
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; 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; and 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.
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.
