Good Financial Standing

Applicant(s) must:

• have a credible savings record of a minimum of 12 months duration immediately prior to making an application.
• provide evidence that their savings have accumulated over a period of at least 12 months.
• provide bank or similar statements (post office, credit union, etc.) for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings.

Deposit amount

• You must have a minimum deposit equivalent to 10% of the property's market price or purchase price, whichever is less. Applicants availing of the Tenant Purchase Scheme are exempt from this requirement.
• The minimum 10% deposit can be made up of both cash savings and gifts/other unborrowed sources.
  • The cash savings must be no less than 3% of the value of the property and evidenced at the time of making a Local Authority Home Loan application.
  • Gift or money from other unborrowed sources can be of 7% of the value of the property;
    • All of the applicant(s) financial contribution (from unborrowed sources) will be in place and evidenced in the applicant(s) bank account prior to loan drawdown. Their source must be verified and provided as part of the Local Authority application.
    • For new properties only both purchased and self build properties, the Help to Buy Scheme can be used.
    • Unexplained lump sum lodgements made to any account within the 12 month period prior to making a Local Authority Home Loan application must be explained and supported by documentary evidence if they are to be considered when computing the cash savings contribution to the deposit.
    • Discount from vendors will be ignored.
• For clarity, even if gifts or money from other unborrowed sources make up more than 10% of the purchase price, documented cash savings of at least 3% of the purchase price are still required.

Please note: 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. Unidentified lump sum lodgements made to a savings account within the 12-month period will not be considered when computing the deposit.

Maximum Loan amount and term

• The maximum loan amount is specified in the Housing Loans Regulations 2021 (SI No. 701 of 2021) or any Regulations or enactment amending or replacing those Regulations.
• The maximum mortgage loan cannot exceed;

  • €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 and Tipperary

• The maximum loan to value you can borrow is 90% of the market value or the purchase price of the property. This means that if, for example, the property you purchase is €360,000 then the most you can borrow is €324,000. Similarly, if, for example, the property you purchase is €300,000 then the most you can borrow is €270,000.
• The maximum loan term is 30 years up to the age of 70 and must be repaid by an annuity of principal and interest combined. All payments shall be made at monthly intervals by direct debit. 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.

Interest Rate

A Local Authority Home Loan offers two fixed interest rates:

• for mortgages with a term up to 25 years
• for mortgages with a term from 26 years up to 30 years

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. Interest rates are subject to change at any time before the drawdown of a Local Authority Home Loan. The interest rate is determined by the applicable rate on the date of drawdown and is fixed for the full term.

Borrowing Record

Where the applicant(s) have a previous or existing borrowing record, this will be considered as part of the application for the Local Authority Home Loan.

• Applicant(s) must provide evidence of all existing borrowings with 12-month up-to-date statements.