SUMMARY
Grant / Support Name: Local Authority Home Loan (Previously known as Rebuilding Ireland Home Loan Scheme)
Provider: Irish Government
Value: You can borrow up to 90% of the market value of the property you are building or buying with the maximum values differing depending on where the property is located, ranging from €360,000 in Dublin, Kildare and Wicklow to €275,000 in 13 other counties.
Overview: The Local Authority Home Loan is a government-backed mortgage for first-time buyers and certain other applicants. Loans are offered at reduced interest rates and can be used to buy new and second-hand properties, or to build a home.
Eligibility:
The Local Authority Home Loan is available to
- First-time buyers
- ‘Fresh Start’ applicants. Fresh start applicants include people who are divorced, separated or whose relationship has ended and who have no financial interest in the family home. It also open to
- Individuals who have gone through personal insolvency or bankruptcy.
Special Conditions:
Applicants must:
- Be aged between 18 and 70
- Provide evidence of insufficient offers of finance from two regulated financial providers, for example, a bank or building society.
- Have a gross annual income of less than €70,000 for single applicants and €85,000 for joint applicants and
- Have a satisfactory credit record.
- Have a deposit of at least 10% of the property’s market price or purchase price.
- Have been in continuous employment or self-employment for a minimum of 2 years, if you are the primary applicant. Continuous employment does not have to be permanent, full-time or even with the same employer. However, there should not be a break of more than 4 weeks between your jobs and you will not qualify if you have lots of casual jobs.
Tax Implications: An end of year P60 or P21 is required as well as proof of Local Property Tax payments, if applicable.
ARTICLE
A Local Authority Home Loan is a government backed mortgage for first-time buyers and Fresh Start applicants, now available nationwide from your local authority.
If you are divorced or separated and have no interest in the family home, who have undergone personal insolvency or bankruptcy arrangement or proceedings or other legal process, you will be eligible to apply for Local Authority Home Loans Scheme.under the Fresh Start principle.
You can use it to buy a new or second-hand property or to pay for a self-build. The Loan provides up to 90% of the market value of the property and the maximum loan amount depends on where it is located.
You need to show that you can afford your monthly mortgage repayments, which must be less than one-third of your household income. You can use the Home Loan Calculator on the Local Authority Home Loan website to get an estimate of how much you can borrow and what your repayments will be.
The current interest rates are 4% fixed for loans up to 25 years (4.07% APR) or 4.05% fixed for loans over 25 years and up to 30 years (4.13% APR).
You can borrow up to 90% of the market value of the property but you must provide evidence of insufficient offers of finance from two regulated financial providers, for example, a bank or building society, to be eligible. You must also have a gross annual income of less than €70,000 for single applicants and €85,000 for joint applicants.
Maximum market values of the property that can be purchased or self-built are:
- €360,000 in Dublin, Kildare or Wicklow, or
- €330,000 in Cork, Galway, Louth or Meath, or
- €300,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath or Wexford, or
- €275,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo or Tipperary.
LINKS
You can find out more at www.localauthorityhomeloan.ie and book an appointment with your local authority to begin the application process.
