Dáil Éireann Debate, Tuesday - 7 July 2020
295. Deputy Jackie Cahill asked the Minister for Housing, Planning and Local Government if the housing assistance scheme for first-time buyers applies to a once-off building of a home in the countryside; and if he will make a statement on the matter. [14167/20]
Amharc ar fhreagraThe Rebuilding Ireland Home Loan was introduced on 1 February 2018. The loan can be used both for new and second-hand properties, or to build your own home.
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. Applicants can then drawdown their mortgage for a self-build property through stage payments if required.
The availability of the Help To Buy Scheme for first-time-buyers, which is the policy responsibility of the Minister of Finance, offers additional assistance to purchasers of newly built properties. Up to 5% of the purchase price of properties below €400,000 could be available, which represents a significant contribution towards these deposit requirements. This should alleviate some of the challenges faced by first-time buyers in accessing the 10% deposit of the market value of the property. The initiative has been designed to provide immediate and targeted support for first-time buyers in meeting their deposit requirements and encouraging the construction of new housing units.
Further information, including a Home Loan Calculator and the Application Form is available on the website www.rebuildingirelandhomeloan.ie.
