The Local Authority Home Loan, which is available since 4 January 2022 is a Government-backed mortgage for first-time buyers and fresh start 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.
As part of the eligibility criteria, applicant(s) of the Local Authority Home Loan must have at least two years’ continuous employment in Ireland in order to be eligible. The continuous employment requirement applies to all applicants, regardless of nationality. Applicants for the Local Authority Home Loan are required to demonstrate a track record of employment that would enable them to repay any monies borrowed. Given that the mortgage would be a long-term financial commitment in Ireland, applicants are required to demonstrate this employment and earnings record in Ireland.
While I note the matter raised may pose issues in certain situations, it is important that all Local Authority Home Loan applicants demonstrate an adequate employment record. I will keep this matter under review.
The final decision on Local Authority Home Loan applications is a matter for the relevant local authority. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme and the credit policy that underpins the scheme, in order to ensure prudence and consistency in approaches in the best interests of both borrowers and lending local authority.
