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Housing Schemes

Dáil Éireann Debate, Tuesday - 1 March 2022

Tuesday, 1 March 2022

Questions (380)

Seán Haughey

Question:

380. Deputy Seán Haughey asked the Minister for Housing, Local Government and Heritage if he will revise the local authority home loan scheme in order that the purchase of a house above the value of €320,000 can be considered given the level of the house prices in the Dublin area; if the 10% deposit sought from purchasers can be increased in this context; and if he will make a statement on the matter. [11644/22]

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Written answers (Question to Housing)

The Local Authority Home Loan is a Government backed mortgage for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build. It is the successor to the Rebuilding Ireland Home Loan.

With a Local Authority Home Loan you can borrow up to 90% of the market value of a residential property.  Therefore, to avail of the loan applicants must have a deposit equivalent to 10% of the market value of the property. 

The applicant(s) must provide bank or similar statements (post office, credit union, etc.) for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings.  The cash savings should be no less than 3% of the market value of the property.  Gifts are permissible up to 7% of the market value of the property where their source is verified.  However, the availability of the Help To Buy Scheme for first-time-buyers offers additional assistance to purchasers of newly built properties.

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.

This limits the amount that can be borrowed to no more than €288,000 in the counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and no more than €225,000  in the rest of the country.

There are no plans at present to change the house price limits.

Further information on the scheme is available on the dedicated website localauthorityhomeloan.ie/.

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