More people will be eligible to apply for the Local Authority Home Loan, the Minister for Housing Darragh O’Brien has announced.
The new improvements to the State-backed mortgage will include house price and income limits being increased for all authority areas. As well as that, more single applicants will be able to apply for the loan, with the income limit for single applicants being raised up to €70,000.
Speaking after the announcement, Minister O’Brien said: “The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people who want to own their own home.”
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The ‘Fresh Start Principle’ also applies for people who are divorced or separated and have no interest in the family home. Those who have undergone insolvency proceedings can also avail of the loan. The changes will come into effect from March 1.
The Local Authority Home Loan was launched in January 2022 as part of Housing for All with the aim of helping those on more moderate incomes to achieve homeownership. Since February 2018 over 3,300 people have got on the property ladder through the 2022 scheme and its predecessor the Rebuilding Ireland Home Loan.
It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. The loan can be used for new, second hand or self-build homes.
Below are the increases to house price limits for all local authorities areas:
Increase from €320,000 to €360,000 – Dun Laoghaire Rathdown, South Dublin, Dublin City, Fingal, Wicklow, Kildare
Increase from €320,00 to €330,000 – Galway City, Cork City, Louth, Meath, Galway County, Cork County
Increase from €250,000 to €300,000 – Limerick, Waterford, Clare, Wexford, Westmeath, Kilkenny
Increase from €250,000 to €275,000 – Offaly, Laois, Monaghan, Cavan, Donegal, Tipperary, Kerry, Mayo, Roscommon, Sligo, Leitrim, Longford, Carlow
Increased income limits for all applicants in each local authority area
Increase from €50,000 and €65,000 to €70,000 for all single applicants nationwide
Increase from €75,000 to €85,000 for all joint applicants nationwide
Minister O’Brien, along with Public Expenditure and Reform Minister Pascal Donohoe TD, will sign the amendment regulations in the coming weeks.
A Local Authority Home Loan offers two fixed interest rate products: 3.35 per cent fixed for up to 25 years (APR 3.40 per cent) and 3.45 per cent fixed for up to 30 years (APR 3.51 per cent).
The maximum amounts that can be borrowed will be as follows:
In areas with a house price limit of €275,000, the borrowing limit will be €247,500
In areas with a house price limit of €300,000, the borrowing limit will be €270,000
In areas with a house price limit of €330,000, the borrowing limit will be €297,000
In areas with a house price limit of €360,000, the borrowing limit will be €324,000.
For more information on the number of local authority loans approved and amounts paid, at local authority area level, visit the Government’s official page.
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