Dáil Éireann Debate, Monday - 11 September 2023
858. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage the reason in relation to the local authority home loan income earned only in the Republic and in the North of Ireland is reckonable for eligibility for the loan; if consideration has been given to including income earned in other EU countries as reckonable; and if he will make a statement on the matter. [37705/23]
View answerThe Local Authority Home Loan is a Government backed mortgage scheme for creditworthy applicants 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. A ‘Fresh Start’ principle applies for applications to the Local Authority Home Loan.
Single applicants must not be earning greater than €70,000 annual gross income. The combined income of joint applicants must not be greater than €85,000 annual gross income. As part of the eligibility criteria, the primary earner on the application must have at least two years continuous employment, including self-employment, in Ireland or Northern Ireland to be eligible for the Local Authority Home Loan.
Only income originating in the Republic of Ireland or Northern Ireland by applicants with rights of residency and rights to seek employment in the Republic of Ireland will be reckonable in calculating borrowing and repayment capacities. As with any mortgage, applicants need to demonstrate a track record of employment and earnings that would enable them to repay any monies borrowed. As any successful borrower will likely be depending on Irish earnings to repay their mortgage over 25/30 years, it is their employment and earning record in Ireland that is of most relevance in determining their loan application. It is important that all Local Authority Home Loan applicants demonstrate an adequate employment record and repayment capacity.
I note the matter raised regarding income earned in the European Union and I will keep this matter under review.
