Dáil Éireann Debate, Tuesday - 5 October 2021
284. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage when the new interest rate will be in place for the Rebuilding Ireland home loan; the interest rate which will apply; the mortgage protection rate that will be charged; and the estimated monthly repayments on a €200,000 loan taken out over 30 years. [47543/21]
View answerAs part of Housing for All, I announced a reformed successor to the Rebuilding Ireland Home Loan Scheme (RIHL), the 'Local Authority Home Loan'. I also announced an interest rate reduction of 0.25% on local authority mortgage lending.
As of 10 September 2021, the reduction of the mortgage interest rate for new borrowers by 0.25% has already been implemented. It currently applies to new mortgages issued under the existing RIHL and this lower rate will also apply to loans issued under the forthcoming Local Authority Home Loan.
The local authority mortgage protection insurance scheme has applied to all house purchase loans approved by local authorities after 1 July 1986, including the RIHL introduced on 1 February 2018. Local authority mortgage protection insurance is currently charged at the rate of 0.555%, this rate does not vary between local authorities.
The estimated monthly repayment on a RIHL €200,000 loan taken out over 30 years is €908.45, including an interest rate of 2.745% and the current 0.555% MPI rate.
