Significant improvements to the Local Authority Home Loan have been announced that will result in more people being eligible to apply for the State-backed mortgage.
The prices of homes eligible for a Local Authority Home Loan and income limits of those eligible to apply for a loan are being increased following changes announced by Minister for Housing, Local Government and Heritage, Darragh O’Brien.
The Local Authority Home Loan was launched in January 2022 as part of Housing for All. It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It can be used for new, second hand or self-build homes. It means those on more moderate incomes are helped by the State to achieve homeownership, a key aim for this government.
The changes to the Local Authority Home Loan will come into effect on March 1st 2023.
Minister O'Brien said: "Building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan."
Changes to house price limits:
- €360,000 (€40,000 increase from previous €320,000 limit) – Dún Laoghaire Rathdown, South Dublin, Dublin City, Fingal, Wicklow, Kildare.
- €320,000 (€10,000 increase from previous €320,000 limit) – Galway city, Cork city, Louth, Meath, Galway county, Cork county.
- €300,000 (€50,000 increase from previous €250,000 limit) – Limerick, Waterford, Clare, Wexford, Westmeath, Kilkenny.
- €275,000 (€25,000 increase from previous €250,000 limit) – All other local authorities.
Changes to income ceilings:
- Single applicants increase from previous limits €50,000 and €65,000 to €70,000.
- Joint applicants increase from €75,000 to €85,000.