The Rebuilding Ireland Home Loan Scheme enables credit-worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range, where they cannot obtain sufficient mortgage finance from a commercial lender.
As with the previous local authority loan offerings, the Rebuilding Ireland Home Loan is available to first-time buyers only. This is set out in the regulations governing the Scheme and ensures the effective targeting of limited resources.
A person who has been discharged from bankruptcy and is eligible in all other respects, including being a first-time buyer, for a Rebuilding Ireland Home Loan may apply for a loan and will be subject to the same credit assessment process that applies to all applicants, which is carried out in accordance with the credit policy for the scheme.
Applicants who are separated or divorced may be treated as first-time buyers, in accordance with the regulations, if they meet certain conditions, including:
- they are separated or divorced under a court order or by a separation agreement;
- the property being purchased is the first property since leaving the family home;
- they have left the family home and retain no interest in it; or
- the other party has remained in the family home.
In meeting the conditions as set out above, in particular that the other party has remained in the family home and that the potential applicant has relinquished any rights they had over that property, no financial gain should have been made by the potential applicant in exchange for relinquishing their rights to the property in this manner. Were the individual to have made a financial gain in releasing their rights to the property, such as being bought out by the other party who remains resident in it, they would be deemed to have been compensated for their interest in the property, and therefore not be eligible as a first-time buyer.
The final decision on loan approval is a matter for the relevant 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 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 the lending local authorities.