New Information Campaign Encourages Applications to Local Authority Home Loan Scheme
New Information Campaign Encourages Applications to Local Authority Home Loan Scheme
Over 3,350 households have been helped to get on the property ladder using the Local Authority Home Loan scheme since 2018
27 August 2023
The Minister for Housing, Local Government and Heritage, Darragh O’Brien today launched an information campaign encouraging those looking to purchase a new or second-hand home or build their own home to consider applying for a Local Authority Home Loan.
A Local Authority Home Loan is a Government backed mortgage for creditworthy first time buyers (or those making a fresh start after a divorce, separation or bankruptcy) and is available nationwide from the nearest local authority. It enables an applicant to borrow up to 90% of the value of the property.
The campaign which will run on radio, digital and social media will highlight a Local Authority Home Loan as a viable source of finance for those seeking to get on the property ladder, especially for those who may not have been able to obtain finance from traditional mortgage providers.
Commenting Minister O’Brien said:
“Affordability and the chance to own a home is at the heart of the Government’s housing policy. The Local Authority Home Loan is one of several initiatives which offers tangible financial assistance to those looking to purchase their own home.
“To date, over 3,350 households have successfully applied to the scheme, have been provided with a State backed mortgage and have purchased their own home.
“Earlier this year, we made major improvements to the loan by increasing both the house price ceilings for all local authority areas and raising the income eligibility limits for applicants meaning it now applies to a wider base with more people eligible to apply.
I’m encouraging anyone who is seeking to get on the property ladder but who have received insufficient offers of finance to look into the option of applying for a Local Authority Home Loan.”
The information campaign website is www.localauthorityhomeloan.ie.
A Local Authority Home Loan is a Government backed mortgage for first time buyers and Fresh Start applicants. It is available nationwide from your local authority. It can be used to purchase a new or second-hand property or for self-build. A Local Authority Home Loan provides up to 90% of the value of the property. The maximum loan amount is determined by where the property is located.
The loan is a normal Capital and Interest-bearing mortgage which is repaid by direct debit on a monthly basis.
Applicant must provide proof of insufficient mortgage offers of finance from two regulated financial providers.
Maximum 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.
Income limits for all applicants in each local authority area:
• €70,000 for all single applicants nationwide
• €85,000 for all joint applicants nationwide
Fresh Start Principle
The Local Authority Home Loan caters for first time buyers but the Fresh Start Principle also applies - meaning that applicants who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the family home may be eligible to apply under this scheme. In addition, applicants who have undergone personal insolvency or bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme.
