Frequently Asked Questions
My Local Authority Home Loan
The maximum market value of the property that you can purchase or self-build is:
- €320,000 in the counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and
- €250,000 in the rest of the country.
The maximum amount you can borrow depends on where you intend to live.
- For property purchased or in Cork, Dublin, Galway, Kildare, Louth, Meath or Wicklow, the maximum loan amount you can borrow is €288,000.
- For property purchased or in any other county of Ireland, the maximum loan amount you can borrow is €225,000.
The maximum loan to value you can borrow is 90% of the market value of the property. This means that if, for example, the property you purchase is €320,000 then the most you can borrow is €288,000. Similarly, if, for example, the property you purchase is €250,000 then the most you can borrow is €225,000.
The maximum term over which you can borrow is 30 years.
The term may be shorter depending on your age. The number of years between the date of loan drawdown and the oldest applicant reaching the age of 70 determines the length of time over which you can borrow.
This means that a single applicant aged 35 years can have maximum term of 30 years, but a single applicant aged 45 years is limited to a maximum term of 25 years.
In the case of a joint application, one applicant aged 35 years and the other aged 45 years, the couple is limited to a maximum term of 25 years.
You need a deposit of at least 10% of the market value of the property you intend to purchase or self-build.
Where you wish to borrow 90% of the market value, your 10% deposit contribution must be made up of:
- personal savings of at least 3% of the value of the property and
- funds of up to 7% of the value of the property, from an unborrowed source.
Personal savings must be accumulated over a period of at least 12 months before you make your application. You must provide certified or original bank or similar statements (post office, credit union, etc.) clearly showing a credible and consistent record of savings.
The balance of funds may be from a gift or other unborrowed source (i.e., not another loan).
For a property with a market value of €320,000 you will need a deposit of at least €32,000.
This must be evidenced by way of:
- a minimum of €9,600 (3%) from your personal savings and
- €22,400 (7%) from any unborrowed source, such as a parental gift.
Where receiving a gift, a letter is required, detailing the gift amount, that the amount is non repayable and the disponer giving the gift will have no interest in the property purchased with a Local Authority Home Loan.
Yes, you can use the Help-To-Buy scheme towards your deposit.
The Help-To-Buy (HTB) scheme can be used towards your deposit if you are purchasing or self-building a new property. The HTB Application Number and HTB Access Code must be provided as part of your Local Authority Home Loan application. Full details on the Help-To-Buy scheme are available from www.revenue.ie
A Local Authority Home Loan offers two fixed interest rates:
- 2.845% fixed for mortgages with a term up to 25 years (APR 2.88%)
- 2.945% fixed for mortgages with a term from 26 years up to 30 years (APR 2.99%)
Interest rates are subject to change at any time before the drawdown of a Local Authority Home Loan. The interest rate is set on the date of drawdown and is fixed for the full term.
All interest rates quoted are exclusive of which is a requirement of borrowing. Eligible borrowers are required to join the MPI is paid monthly, in addition to loan repayments.
A fixed interest rate mortgage is a loan where the interest rate stays the same throughout an agreed period. The Local Authority Home Loan interest rate is fixed for the full term of the mortgage. This means that your loan repayments are the same every month for the lifetime of the mortgage.
You can repay your fixed rate mortgage early, in full or in part. An early repayment charge may be applied. See page 7 of the Information Booklet for more details.
Mortgage Protection Insurance is a form of insurance which pays off the outstanding balance on your mortgage should you die before the mortgage is fully repaid. Mortgage Protection Insurance (MPI) is a requirement of borrowing.
Mortgage Protection Insurance (MPI) is a requirement of borrowing. The Local Authority MPI scheme is a group scheme. It is obligatory for all borrowers who meet the eligibility criteria to join the scheme.
The benefits include:
- the payment of mortgage repayments if there is a valid claim as a result of disability;
- an additional payment of €3,000 in the event of a member’s death, separate to life cover; and
- members are also covered for death up to age 75.
Full terms and conditions of the scheme are available from your local authority.
The "Fresh Start" principle allows people who have previously owned a home to be eligible to apply for a Local Authority Home Loan.
You are eligible to apply for a Local Authority Home Loan under the Fresh Start Principle if you:
- Previously purchased or self-built a residential property, and
- Are divorced/separated or otherwise no longer in a relationship with your co-owning partner, and
- Have left the family home and divested yourself of your interest in the property
- Previously purchased or self-built a residential property and
- Have been divested of this through insolvency or bankruptcy proceedings
The "Fresh Start" principle does not allow a Local Authority Home Loan to be used to buy out a former partner’s share of a family home.
A Local Property Tax (LPT) check compares your PPSN against a database of people registered with Revenue for Local Property Tax.
Your consent to allow your local authority to conduct an LPT check is required as part of your application for the Local Authority Home Loan. An LPT check is carried out by your local authority to confirm your eligibility as a first-time buyer. The check is made via the Revenue’s online LPT system.
In such a case where you are registered for the Local Property Tax but do not own, or have no interest in the registered property, your local authority will require further documentation as proof of this.
The Central Credit Register is a secure system for collecting personal and credit information on loans of €500 or more. The Central Credit Register is owned and operated by the Central Bank of Ireland.
The Central Credit Register is a national database that, on request, provides:
- an individual credit report detailing an applicant’s credit agreements;
- a lender with comprehensive information to help with credit assessments; and
- the Central Bank with better insights into national trends in the provision of credit.
All applicants to the Local Authority Home Loan must consent to the carrying out of credit check and reporting of the loan application to Central Credit Register. Consent is given as part of the completion of the Local Authority Home Loan application form.
For more information about the Local Authority Home Loan please read the Information Booklet in full. If you cannot find the answer there, please complete the Contact Us form and your enquiry will be answered.