Dáil Éireann Debate, Wednesday - 18 December 2019
470. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government his plans to improve the criteria for the home loan scheme particularly the requirement of a 10% deposit; if some provision can be made to lessen this demand for applicants that have a good track record in renting private property; and if he will make a statement on the matter. [53827/19]
Amharc ar fhreagraThe Rebuilding Ireland Home Loan Scheme is designed to enable credit worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties. The low rate of fixed interest associated with the Rebuilding Ireland Home Loan provides first-time buyers with access to mortgage finance that they may not otherwise have been able to afford at a higher interest rate.
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. There are no plans to change this criterion.
For prospective purchasers of newly-built properties, the availability, through the Revenue Commissioners, of the Help to Buy Initiative for first-time buyers may provide additional assistance to prospective applicants for the Rebuilding Ireland Home Loan.
Further information, including a Frequently Asked Questions section, is available on the Rebuilding Ireland Home Loan website at http://rebuildingirelandhomeloan.ie.
