Local Authority Home Loan

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Frequently Asked Questions

My Employment and Income

What employment do I need to be eligible for the Local Authority Home Loan?

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

Employment can be PAYE and/or self-employment.

Can I apply if I am on Contract Employment?

Yes. See page 10 of the Information Booklet for more details.

What is continuous employment?

Continuous employment does not need to be permanent, but continuous in nature. This means you may be in the same employment or in more than one employment for that period, where a break in employment has lasted no more than 4 weeks.

Multiple casual employments will not be considered eligible.

What impact does Covid-19 related periods of unemployment have on my continuous employment?

The requirement that a single or sole earner must have at least two years continuous employment and the second applicant must have at least one year of continuous employment is relaxed for periods where an applicant was unemployed as a direct result of the COVID-19 situation. Generally, affected applicants who were in receipt of the Pandemic Unemployment Payment (PUP) up to 5 April 2022 are not considered to have had a break in employment in the two preceding years if the following conditions are met:

What evidence of employment do I need?

You must complete the salary certificate on the Local Authority Home Loan application form, which must be signed and stamped by your employer.

Where self-employed, you must provide a minimum of 2 years certified accounts (which should not be more than 18 months old), together with Notices of Assessment from Revenue for those years and an Accountant’s or Auditor’s Report (a qualified report is not acceptable) from a suitably qualified practitioner (such as ACCA/FCA/CPA/IPA) confirming that all taxes, personal and business, are up to date and in order and that there are no arrangements in place with Revenue in respect of outstanding tax liabilities.

Can I apply if I am on probation?

Yes, you can apply for a Local Authority Home Loan while you are on probation. However, additional documentation may be requested from you as part of your application. It may be necessary for your probation period to have been completed before a final decision can be made and issued.

How is my income calculated for eligibility?

Only income originating in the Republic of Ireland or Northern Ireland by applicants with rights of residency and rights to seek employment in the Republic of Ireland will be reckonable for eligibility. If you are unsure about this, please contact your local authority for confirmation.

For eligibility, your income is calculated:

How is my income calculated for borrowing?

Only income originating in the Republic of Ireland or Northern Ireland by applicants with rights of residency and rights to seek employment in the Republic of Ireland will be reckonable for borrowing and repayment capacities.

For borrowing, your income is calculated:

How is my commission/overtime/bonus treated as part of my income?

Your commission, overtime or a bonus will be included as part of your income for eligibility. However, the source and long-term nature of these incomes need to be considered in determining your borrowing and loan repayment capacity.

Income from payments above basic earned income are treated as follows:

Overtime

Generally restricted to a maximum of 10% of basic income

Bonus

Generally restricted to 10% of basic income

Subsistence

Generally restricted to 10% of basic income

Commission

Generally restricted to 30% of basic income

Other income

Shift allowance, where evidenced, treated same as basic earned income

All additional income must be evidenced in the Local Authority Home Loan Salary Certificate, payslips and bank account lodgements and verifiable as guaranteed and/or regular.

Can I use my State Benefit payments as income?

Certain long-term State Benefit payments may be considered, but only where the main income source is of an earned nature (i.e., more than 50% of the income that forms the full Local Authority Home Loan application is from a source other than State Benefit payments).

Long-term State Benefit payments considered are:

100% of the above long-term State Benefit payments will be used. However, the long-term nature of the payment must be confirmed by the Department of Social Protection or other relevant Government Department.