Seán Sherlock
Question:299. Deputy Sean Sherlock asked the Minister for Housing, Local Government and Heritage if he will report on the Housing for All for a reformed local authority home loan. [17527/22]
View answerTuesday, 5 April 2022
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Building on the commitment in Housing for All – pillar 1 Pathway to Supporting Home Ownership and Increasing Affordability, the Regulations establishing the reformed Local Authority Home Loan were signed in December 2021.
The introduction of the Local Authority Home Loan was announced as part of Housing For All. This is the successor to the Rebuilding Ireland Home Loan Scheme. It has been available nationwide from local authorities since 4 January 2022 for people on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used both for new and second-hand properties, or to self-build. It is available for first-time buyers and fresh start applicants. The Local Authority Home Loan can also be used for the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.
The Local Authority Home Loan assists borrowers in securing an affordable, long-term fixed rate mortgage to purchase a home of their own. The Scheme supports homeownership amongst lower to moderate income households by reducing the cost of mortgage finance and increasing the level of financing available, particularly for single applicants in urban areas.
Under the Local Authority Home Loan scheme the income ceiling for a single applicant seeking to purchase a home in counties where the scheme's house price limit is €320,000 (Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow) has been increased from €50,000 to €65,000. In the rest of the country, where the scheme’s house price limit is €250,000, the income ceiling for a single applicant will remain at €50,000. The income ceiling for joint applicants remains at €75,000.
A 'Fresh Start' principle also applies to the Local Authority Home Loans scheme. This means that people who are divorced, legally separated/separated or the relationship has ended and have no interest in, or any financial obligation for any borrowings in respect of the family home are eligible to apply under this scheme. People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme.
Further details can be found on the following websites: revenue.ie/en/property/help-to-buy-incentive/index.aspx and localauthorityhomeloan.ie/.