The maximum market value of the property to be purchased is:
The maximum amount you can borrow depends on where you intend to live. The maximum loan amount you can borrow for property purchased or self-built is:
€324,000 in Dublin, Kildare or Wicklow, or
€297,000 in Cork, Galway, Louth or Meath, or
€270,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath or Wexford, or
€247,500 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo or Tipperary.
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 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).
Example:
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:
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 revenue.ie
A Local Authority Home Loan offers two fixed interest rates:
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 Mortgage Protection Insurance (MPI) which is a requirement of borrowing. Eligible borrowers are required to join the Local Authority Mortgage Protection Insurance Group Scheme. 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.
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:
Full terms and conditions of the scheme are available from your local authority.
The Fresh Start principle allows people who have previously previously purchased or built a dwelling/dwellings 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:
or
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.
Note: If you are eligible under Fresh Start and you previously owned more than one dwelling you can still apply once you meet all the other eligibility criteria.
Yes, you will still be deemed eligible for the Local Authority Home Loan as a Fresh Start applicant where you owned more than one dwelling and have left the family home and divested yourself of these properties following divorce/separation or insolvency/bankruptcy proceedings.
In such cases the most recently owned home must have been lost due to the ‘Fresh Start’ event i.e. experienced divorce/separation or insolvency/bankruptcy.
The recent changes widen the definition of ‘Fresh Start’ to allow a person who has experienced divorce/separation or insolvency/bankruptcy, to be eligible to apply for a Local Authority Home Loan regardless of the number of previous dwellings that person may have owned.
In these cases, the most recently owned home must have been lost due to the ‘Fresh Start’ event i.e. experienced divorce/separation or insolvency/bankruptcy.
Before these changes, applicants who went through a Fresh Start event such as divorce/bankruptcy and were divested of the family dwelling as a result but had previously bought/built dwellings prior to this specific home, were not eligible under the Fresh Start principle.
It is still the case that Fresh Start applicants must have been divested of all previous dwellings that they purchased or built. An applicant cannot apply under the Fresh Start principle but still retain ownership of dwellings previously bought or built. However, a person may retain ownership of an inherited dwelling and still be eligible for the LAHL under the Fresh Start principle.
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:
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 complete the contact form and your enquiry will be answered.