Local Authority Home Loan Key Features

First Time Buyer Status

In order to qualify for the Local Authority Home Loan scheme, each applicant must be a first-time buyer (applicants cannot have previously, either individually or jointly, purchased or built on their own behalf, a residential property either in Ireland or elsewhere) or be otherwise eligible through the Fresh Start principle.

As an applicant you are required to declare that you are a first time buyer(s). You must provide your Personal Public Service Number (PPSN) and consent to authorise the Local Authority to conduct such checks as are necessary to confirm this, such as conducting a Local Property Tax check and Central Credit Register check.

Joint Applicant Status

For the purposes of a joint application, all applicants must qualify as first-time buyers except where an applicant is eligible under the Fresh Start principle. Joint applicants can be two or more persons who apply for a housing loan together.

Applicant Eligibility

• Proof of insufficient mortgage offer, taking into account the level of savings available to the applicant, from two regulated financial providers in the Republic of Ireland must be submitted as part of the Local Authority Home Loan application. The proof must be dated within 12 months of the application, and the amount must be equal to or less than the Local Authority Home Loan amount sought. Examples of acceptable evidence are:
  • A letter from a regulated mortgage provider showing the amount you requested and were offered, and/or
  • A letter from a regulated mortgage provider stating that your application is outside their lending criteria, and/or
  • An online calculator output sheet from a regulated mortgage provider website, showing that you have insufficient borrowing capacity for the amount sought under your Local Authority Home Loan application.
  • A letter from a mortgage broker firm confirming that you have been unable to secure sufficient mortgage finance from two regulated mortgage providers, with supporting screenshots or print outs of the attempts made.
• Each applicant must be aged between 18 years old and 70 years old
• Applicant(s) cannot have previously purchased a residential property in or outside Ireland, with the exception of applicant(s) qualifying under the Fresh Start Principle.
• Property ownership through inheritance does not impact on your eligibility to apply as a first time buyer, i.e. if you own a house that you did not purchase  and have not previously purchased a home then you are still eligible to apply for the Local Authority Home Loan Scheme.
• You must intend to occupy the property as your normal place of residence.
• Applicant(s) must currently have a right to reside in the State
• Single applicants must not be earning greater than €70,000 annual gross income.
• The combined income of joint applicants must not be greater than €85,000 annual gross income.
• Where you are married, in a civil partnership, or in an intimate and committed relationship, they may not apply for a Local Authority Home Loan on their own. They must make any such applications together with their spouse, civil partner or partner, as the case may be.
• You must have a credible savings record of a minimum of 12 months duration immediately prior to making an application.
• You must be of good credit standing with a satisfactory credit record.

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 primary earner in a joint application
• An exemption to the requirement for continuous employment can be given in situations where an applicant has verifiable income from an alternative source, such as a pension from a previous employment, for the last 2 years (or 1 year if they are secondary earners in a joint application). However, this income must be of a sufficiently long-term and guaranteed nature as to provide a sustainable basis for repaying a mortgage.
• Employment can be PAYE and/or self-employment.
  • Continuous employment does not need to be permanent, but continuous in nature. This means that an applicant may be in the same employment or in more than one employment over a two year period, however the break from employment cannot have been for more than 4 weeks.
  • For self-employed applicants, a minimum of two full year’s accounts for that employment must be provided.
  • Multiple casual employments will not be considered eligible.

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.

Contract Employment Income

Contract income will be considered in repayment capacity provided:

• The applicant works in an industry where contract income is regarded as common, e.g. (retail, hospitality, education, health, and financial services)
• The applicant has been on contract in similar industry for at least the last two years or, where recently commenced a contract, has been employed in a similar industry for a minimum of the previous two years before their application date.
• Where an applicant(s) contract has three or fewer months to expiry and the contract provider has given written confirmation that the contract is to be renewed.

Further evidence of contract employment may be sought by the Local Authority.

Credit Check

• You must consent to the mandatory Central Credit Register (CCR) enquiry. This consent will be used to conduct a new enquiry as part of the credit assessment process.
• An application will be classified as incomplete if all parties to the Local Authority Home Loan application have not signed the CCR consent. A judgement search is completed for all named applicant(s) on an application recommended for approval.

Mortgage Protection Insurance

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. The Local Authority MPI scheme is a group scheme. It is obligatory for all borrowers who meet the eligibility criteria to join the scheme.

• Local Authority Mortgage Protection Insurance (LA MPI) is a requirement of the Local Authority Home Loan scheme or in the case of one or more applicant(s) not being able to obtain the LA MPI you must have comparable and alternative cover and provide evidence of this cover at the time of drawdown of the loan and each year for the duration of the term of the loan.

Full terms and conditions of the scheme are available from your local authority.