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Irish Mirror

National

Sophie Collins

Good news for future homeowners as eligibility criteria for State-backed mortgage scheme expands

Local Authority Housing Darragh OBrien

Thousands more prospective homebuyers will be able to apply for financial assistance this year as plans for an increase to thresholds for the state-backed mortgage scheme have been announced.

Minister for Housing Darragh O'Brien will brief the Cabinet this morning on new plans for both housing price limits and income ceilings.

The Local Authority Home Loan can be used for new, second-hand or self-build homes and was launched in January 2022 as part of the Government's Housing for All strategy.

In order to match the growing prices seen across the housing market, Minister O'Brien is increasing the price limits for all local authorities, RTE reports.

Here’s everything you need to know:

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
€330,000 (€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 LA's

Changes to Income Ceilings:

Single applicants will see an increase from the previous limits of €50,000 and €65,000 to €70,000 nationwide
Joint applicants will see an increase from €75,000 to €85,000 nationwide

To be eligible for a Local Authority Home Loan you must:

be a first-time buyer with the exception of applicants qualifying under the "Fresh Start" principle and those who have inherited residential property
be aged between 18 and 70 years
be in continuous employment for a minimum of two years, as the primary earner or be in continuous employment for a minimum of one year, as a secondary earner
as a single applicant have an annual gross income of not more than €65,000 (soon to be increased) in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and be earning under €50,000 (soon to be increased) in all other counties
as joint applicants have an annual gross income of not more than €75,000 (soon to be increased) in all counties

Good news for future homeowners as eligibility criteria for state-backed mortgage scheme expands (Getty Images)

submit two years certified accounts if self-employed
provide proof of insufficient mortgage offers of finance from two regulated financial providers
not be a current or previous owner of residential property in or outside the Republic of Ireland, unless you are a "Fresh Start" applicant
applicants are required to declare that they are first time buyers. They must authorise the Local Authority to conduct such checks as are necessary to confirm this, such as conducting Local Property Tax check.
occupy the property as your normal place of residence
purchase or self-build a property situated in the Republic of Ireland
purchase or self-build a property which does not exceed the maximum market value applicable for the county in which it is located
consent to a Central Credit Register check
currently have a legal right to reside and work in the State and be able to demonstrate that they are habitually resident in Ireland

How to apply

If you think you are eligible and can afford the repayments on the amount you need to borrow, you can complete a Local Authority Home Loan application form here.

According to the dedicated website : “Your application form must be signed by all applicants and submitted to your local authority either in person or by post.

“Applicants are advised to contact their local authority to check how to submit their application. Please refer to the "Checklist for applicants" before submitting your application to ensure it is completed correctly and all relevant documentation has been included.

“Your application will be assessed and you will be advised of the decision in writing. Lending criteria, terms and conditions apply.

“Security and Insurance required. Further information on how to apply is available in our FAQ or from your local authority. Once submitted, all queries in relation to your application and the decision should be directed to your local authority”.

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