Dáil Éireann Debate, Tuesday - 13 February 2018
662. Deputy Richard Boyd Barrett asked the Minister for Housing, Planning and Local Government the detail of the self-build aspect of the home loan scheme; the way in which the value of the property at completion will be ascertained; if there will be a limit to the number of applicants to the scheme; and if he will make a statement on the matter. [6716/18]
Amharc ar fhreagraFollowing a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, a new loan offering - the Rebuilding Ireland Home Loan - was introduced on 1 February 2018.
In terms of self-builds, where a loan applicant is building their own home on a pre-owned site with planning permission, the loan available under the Rebuilding Ireland Home Loan may not exceed 90% of the build cost. Where an applicant(s) is building their own home on a site with planning permission to be purchased, funding may not exceed 90% of the site purchase and build cost combined.
Applicant(s) are required to submit with their loan application a valuation report that details the site value, cost of works and post construction market value of the completed property. The valuation report is required to be completed by an Independent Valuer and will be considered by the local authority in assessing the associated loan application.
The Housing Finance Agency (HFA) has raised €200 million from a variety of sources on a fixed rate basis for periods out to thirty years maturity. Based on the pricing achieved, local authorities can offer a first tranche of fixed rate annuity finance to eligible borrowers at rates of 2.0% and 2.25% per annum, for twenty five and thirty years respectively, up to an aggregate maximum of €200 million.
The funding will be drawn down by local authorities from the HFA to match-fund their lending to approved borrowers, on a first come first served basis, under the Loan. Further tranches of loan finance will be secured by the HFA, as necessary.
