Dáil Éireann Debate, Thursday - 28 September 2023
192. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage if the interest rates charged on the equity in later years under the first homes scheme have been altered in the face of rising ECB rates; if he will indicate what is the current rate chargeable, and if this rate has incorporated all the prospective changes based on the most recently set ECB rate. [41980/23]
View answerThe First Home Scheme is operated by a Designated Activity Company (DAC), governed by a Board of Directors comprising representatives of the scheme funders, i.e. the State, AIB, Bank of Ireland, and Permanent TSB.
First Home does not apply an interest rate. A service charge applies to the percentage value of unredeemed equity from year 6 in order to cover administrative costs associated with the equity facility. This is at a rate of 1.75% between year 6 to 15, increasing to 2.15% between years 16 to 29 and to 2.85% from year 30 onwards. These figures are set out in the First Home contract.
Any consideration of a change to the service charge is a matter for the First Home Scheme DAC.
Further information on the First Home Scheme service charge is available at: www.firsthomescheme.ie/about-the-scheme/managing-your-equity-facility/.
