Dáil Éireann Debate, Thursday - 11 March 2021
74. Deputy Michael Lowry asked the Minister for Housing, Local Government and Heritage the reason a person (details supplied) in County Tipperary, who has been approved for a Rebuilding Ireland home loan, was refused mortgage protection insurance from the insurance underwriters for the home loan; the options available to the person in such circumstances; and if he will make a statement on the matter. [13592/21]
View answerThe local authority mortgage protection insurance (MPI) scheme applies to all house purchase loans approved by local authorities since 1 July 1986, including the Rebuilding Ireland Home Loan introduced on 1 February 2018. It is an important safeguard for both applicants and lenders.
One of the conditions of the MPI scheme, which is a group policy, is that it is obligatory for all local authority borrowers who meet the eligibility criteria to join the scheme. Altering any conditions of the MPI Scheme could have negative impacts and increase the cost for all existing borrowers. A local authority housing loan applicant who is not eligible for the local authority MPI scheme must source a suitable comparable individual MPI policy from the market.
