Dáil Éireann Debate, Tuesday - 21 September 2021
306. Deputy Rose Conway-Walsh asked the Minister for Housing, Local Government and Heritage if he will consider extending the eligibility criteria of the Rebuilding Ireland home loan to include non-first-time buyers who have separated from a partner and who meet all other criteria; and if he will make a statement on the matter. [45145/21]
View answerThe Rebuilding Ireland Home Loan Scheme enables credit-worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range, where they cannot obtain sufficient mortgage finance from a commercial lender.
As with the previous local authority loan offerings, the Rebuilding Ireland Home Loan is currently available to first-time buyers only. This is set out in the regulations governing the Scheme and ensures the effective targeting of limited resources.
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.
As part of Housing for All, a ‘Fresh start’ principle will apply to applications to State-run affordable housing and loan schemes in future. This means that people who are divorced/separated and no longer have a financial interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply for State loan schemes.
Therefore, the successor to the RIHL, the 'Local Authority Home Loan', which will be in place later in 2021, will apply this 'Fresh start' principle. I look forward to announcing further details in respect of the Local Authority Home Loan in the coming months.
