Wednesday, 5 May 2021

Ceisteanna (287)

Brendan Smith

Ceist:

287. Deputy Brendan Smith asked the Minister for Housing, Local Government and Heritage his plans to reduce the 10% deposit requirement for the Rebuilding Ireland home loan given that this is causing serious difficulty for potential applicants who have high rental costs at present; and if he will make a statement on the matter. [22793/21]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Housing)

The 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 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. More details of this are set out in the FAQ's section of the Rebuilding Ireland Home Loan and in the link below.

http://rebuildingirelandhomeloan.ie/borrowing/

To support prudential lending and consistency of treatment for borrowers, a Loan to Value ratio of 90% applies to the Rebuilding Ireland Home Loan in line with the Central Bank's prudential lending guidelines. 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.

https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx