Dáil Éireann Debate, Tuesday - 20 June 2023
402. Deputy Emer Higgins asked the Minister for Housing, Local Government and Heritage to outline the supports for prospective homeowners who do not qualify for a mortgage based on this year’s income, but do not qualify for the local authority home loan because the process is based on income in 2022 rather than income in 2023. [29833/23]
View answerThe Local Authority Home Loan was launched in January 2022. It is a Government backed mortgage for those who cannot get sufficient funding from commercial banks to purchase or build a home. It is available to first-time buyers and "fresh start" applicants to purchase a new or second-hand property, or to self-build.
In accordance with scheme's rules, the Local Authority Home Loan has an upper gross income limit for scheme eligibility, which takes into account all relevant household income. I recently announced significant changes to the income limits with effect from 1 March 2023. The income limit nationally for a single applicant increased from €65,000 to €70,000 gross per annum and for joint applicants from €75,000 to €85,000 gross per annum. Annual gross income as reported for the previous tax year is used to determine income eligibility of the applicant(s) for the Local Authority Home Loan scheme. Further details can be found on localauthorityhomeloan.ie/information/
A number of schemes are in place to provide affordable housing, such as the Local Authority Affordable Purchase Scheme and the First Home Scheme, which reduce the effective purchase price of relevant properties. The Local Authority Home Loan can be used to purchase a Local Affordable Purchase Scheme property.
Homes made available under the Local Authority Affordable Purchase Scheme are sold in accordance with the Affordable Housing Act 2021, and its associated Regulations. As such, differential home prices apply according to the means and mortgage capabilities of applicants, subject to a minimum price to ensure scheme viability.
Homes purchased utilising the First Home Scheme require the applicant to obtain the maximum mortgage available to them from a participating lender, up to 4 times salary, as per the macro-prudential rules of the Central Bank. The First Home Scheme eligibility calculator is available on the dedicated First Home Scheme website at the following link: www.firsthomescheme.ie/eligibility-calculator/.
