Dáil Éireann Debate, Wednesday - 25 October 2017
112. Deputy Tony McLoughlin asked the Minister for Finance further to Parliamentary Question No. 91 of 18 October 2017, the classification of a first time buyer that is seeking to avail of the lower loan to value rate of 90% as opposed to the 80% for non first time buyers for a person that bought commercial land (agriculture) and never lived in or on it; and if he will make a statement on the matter. [45217/17]
Amharc ar fhreagraThe Help to Buy incentive is provided for in section 477C of the Taxes Consolidation Act 1997. That section defines a first time purchaser as an individual who has not, either individually or jointly with any other person, previously purchased or built a dwelling.
As I advised the Deputy in my reply to his question on 18 October, the fact that a person has previously owned agricultural land does not in any way compromise or restrict that person's entitlement to avail of the Help to Buy scheme, provided such land does not comprise a dwelling.
In relation to the loan-to-value (LTV) ratio, Help to Buy will apply where a mortgage is taken out to purchase or build a home and where the LTV ratio is a minimum of 70%, i.e. the loan must be at least 70% of the purchase value of the property. A higher LTV ratio, such as the 90% suggested, will not present an impediment to qualification for the incentive as the 70% ratio is a minimum value only.
