Are one of them who dreams to own a house in our country? Well, the government has introduced a new scheme to help first time buyers in Ireland to purchase or build a home known as Local Authority Home Loan.
Through the scheme, eligible people can get mortgage upto 90% of the market value of the property. Also the scheme specially considers people who needs ‘Fresh Start.’
The scheme is a Government backed mortgage for first time buyers or other eligible applicants through local authorities. The scheme is for the purchase of new or second-hand residential properties and for self-builds. It also includes the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.
The “Fresh Start” principle means that people who are divorced or separated and have no interest in the family home, or who have undergone personal insolvency or bankruptcy arrangement or proceedings or other legal process, will be eligible to apply.
The Local Authority Home Loan is available nationwide from all local authorities from 4th January 2022.
The loan is a normal Capital and Interest-bearing mortgage which is repaid by direct debit on a monthly basis.
You can borrow up to 90% of the market value of the property.
Maximum market values of the property that can be purchased or self-built are:
- €320,000 in the counties of Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and
- €250,000 in the rest of the country.
Who are eligible?
- be a first-time buyer
- 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 (see Temporary Amendments in Light of Economic Impacts of COVID-19 under What is continuous employment? on our FAQ page here)
- as a single applicant have an annual gross income of not more than €65,000 (gross) in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and be earning under €50,000 (gross) in all other counties
- as joint applicants have an annual gross income of not more than €75,000(gross)in all counties
- 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?
You can apply for the mortgage by filling the form (https://localauthorityhomeloan.ie/uploads/files/LA-home-loan-app-form2022v6.pdf ) and submitting the same to your local authority.
For more details: https://localauthorityhomeloan.ie/
For info call: 051 349720 (8am to 5pm – Monday to Friday)
Alternatively you can visit your local authority for details about the scheme.