Dáil Éireann Debate, Thursday - 7 October 2021
216. Deputy Emer Higgins asked the Minister for Housing, Local Government and Heritage if the terms of the new local authority mortgage scheme can be adapted to include provisions for those that cannot get a mortgage through the bank due to a chronic illness and as such are not able to get life assurance; and if he will make a statement on the matter. [48780/21]
View answerLocal authority mortgage protection insurance (MPI) scheme has applied to all house purchase loans approved by local authorities after 1 July 1986, including the Rebuilding Ireland Home Loan introduced on 1 February 2018. Local authority MPI will also apply to the Local Authority Home Loan when it is intoduced.
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 this condition would have a negative impact on the scheme 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.
I look forward to announcing further details in respect of the Local Authority Home Loan in the coming months.
