I propose to take Questions Nos. 216 and 218 together.
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 (RIHL).
To support prudential lending, applicants must have a deposit equivalent to at least 10% of the market value of the property. Of this deposit, cash savings should provide no less than 3% of the market value of the property and applicants must provide bank or similar statements for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings. Gifts can comprise the remaining 7% of the market value of the property where their source is verified. The 10% deposit applies irrespective of previous housing tenure, and I have no plans to change this requirement.
The availability of the Help to Buy scheme for first-time buyers offers additional assistance to purchasers using the Local Authority Home Loan to buy newly built properties. This should alleviate some of the challenges faced by some first-time buyers in accessing the 10% deposit of the market value of the property. The initiative has been designed to provide immediate and targeted support for first-time buyers in meeting their deposit requirements and encouraging the construction of new housing units.
Single applicants for properties in counties Cork, Dublin, Galway, Kildare, Louth, Meath or Wicklow must not be earning greater than €65,000 annual gross income or €50,000 annual gross income for properties in all other counties. Joint applicants must not be earning greater than €75,000 annual gross income in all counties. There are no set minimum income limits for the Local Authority Home Loan, but applicants must have sufficient repayment capacity to repay a mortgage.
