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:
in continuous employment for a minimum of two years, as a single applicant
in continuous employment for a minimum of two years, as the sole earner in a joint application
in continuous employment for a minimum of two years, as the primary earner in a joint application and be in continuous employment for a minimum of one year, as a secondary earner in a joint application.
Employment can be PAYE and/or self-employment.
Can I apply if I am on Contract Employment?
Yes. Further evidence of contract employment may be sought by the Local Authority to support an application.
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:
You confirm that you became unemployed in or after March 2020 as a result of the COVID-19 situation and you can provide proof of receipt of the Pandemic Unemployment Payment (PUP), or another pandemic relevant scheme. If another unemployment support was obtained, you must explain why you did not access PUP, and
You have resumed continuous employment for a period of at least three months, post your COVID-19 unemployment period(s).
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:
As reported in your PAYE/USC Statement of Liability (formerly P21) for the previous tax year, and/or
As reported in your most recent Notice of Assessment from Revenue (which should not be more than 18months old).
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:
As your basic earned income as evidenced in the Local Authority Home Loan Salary Certificate, payslips and bank account lodgements, and/or
An average of the most recent two-year income as reported in the accounts (which should not be more than 18 months old).
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.
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:
State Pension (Contributory);
State Pension (Non-Contributory);
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.