The Minister for Housing, Local Government and Heritage Darragh O’Brien, TD has today [January 4th 2022] announced a newly expanded Local Authority Home Loan scheme.
Minister O’Brien, along with Public Expenditure and Reform Minister Michael McGrath, signed regulations giving effect to the new Local Authority Home Loan scheme from today, January 4th.
Commenting he said, “Supporting home ownership is a key objective for this Government. In Housing for All, our new Plan for housing in Ireland we committed to introducing a reformed Local Authority Home Loan scheme to further support access to homeownership for creditworthy homebuyers who otherwise find it difficult to access sufficient finance.
“The new regulations will make it easier for single people to avail of a State backed mortgage for a new, second-hand or self-build home. A ‘Fresh Start’ principle also applies which means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply also.
“I am now raising the income ceiling for a single applicant by €15,000 to €65,000 in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow.
“This comes on top of enhancements already made to the scheme. In September I lowered the interest rate for local authority lending by 0.25% and this lower interest rate will continue to apply to loans issued under the Local Authority Home Loan.
“Ultimately, this Government, through Housing for All, is working to put the dream of homeownership back in reach for people. Today’s announcement is another step in that direction,” he concluded.
Notes to Editor:
The introduction of the Local Authority Home Loan was announced as part of Housing For All. The Statutory Instrument was signed on December 14th and commences the scheme on 4 January 2022.
The Scheme is open to all First Time Buyers and to Fresh Start applicants on low or modest incomes who cannot get sufficient funding from commercial lenders to purchase new or second-hand properties or to build your own home.
Houses purchased under the scheme cannot have a value in excess of €320,000 in Dublin, Cork, Galway, Meath, Kildare, Louth and Kildare and €250,000 elsewhere.
Income ceilings apply; single applicants cannot have income in excess of €65,000 if seeking to purchase a home in the €320,000 house price areas; the income ceiling is €50,000 otherwise. The income ceiling for joint applicants is €75,000 nationwide.
The Local Authority Home Loan, similarly to previous local authority loan products, assists borrowers in securing an affordable, long-term fixed rate mortgage to purchase a home of their own. Applicants for the Local Authority Home Loan must have been unable to obtain sufficient financing from a commercial lender.