Dáil Éireann Debate, Tuesday - 24 July 2018
2615. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government if there is a minimum amount a person or persons must save per month when preparing for an application for the Rebuilding Ireland home loan scheme; and if he will make a statement on the matter. [32506/18]
Amharc ar fhreagraThe new Rebuilding Ireland Home Loan is designed to enable credit-worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range. The scheme is targeted at first-time buyers who have access to an adequate deposit and have the capacity to repay a mortgage, but who are unable to access a mortgage sufficient for them to purchase their first home.
Regarding savings required under the scheme, in order to support prudential lending and consistency of treatment for borrowers, a Loan to Value ratio of 90% applies to the Rebuilding Ireland Home Loan as per the Central Bank's prudential lending guidelines. Therefore, in order to avail of the loan, applicants must have a deposit equivalent to 10% of the market value of the property.
Applicants must provide bank or similar statements (such as from post office, credit union etc.) for a 12-month period immediately prior to making an application, clearly showing a credible and consistent track record of savings. Consideration can also be given to applicants who can demonstrate a consistent and credible record of rent payments equal to the proposed monthly repayments in the case of a fixed rate loan or the stress tested monthly repayments in the case of the variable loan. The cash savings of the applicant should be no less than 3% of the market value of the property. Gifts are permissible up to 7% of the market value of the property, where their source is verified.
The Housing Agency assesses applications for loans on behalf of the local authorities. However the final decision on loan approval is a matter for each local authority and its Credit Committee on a case-by-case basis. Decisions on all housing loan applications must be made in accordance with the Regulations establishing the scheme, the statutory credit policy issued under the Regulations and have regard to the recommendations of the Housing Agency, in order to ensure consistency of treatment for all applicants.
