Big boost for thousands of Irish first-time buyers as changes are set to be made to the government-backed mortgage scheme
Thousands of Irish looking to buy their own home are in for a BIG boost as Cabinet is briefed by Housing Secretary Darragh O’Brien today.
Secretary O’Brien is expected to detail plans to raise thresholds for a government-backed mortgage scheme.
The Local Authority Home Loan, a government-backed mortgage for first-time buyers and newcomers, was introduced in January 2022 as part of the government’s Housing For All strategy.
It is designed to help those who cannot get loans to buy a house from banks and it can be used on new, used or home-built properties.
A home loan from a local authority provides up to 90 percent of the property’s market value, and the maximum loan amount is determined by the location of the property.
The minister plans to increase price limits for all local authorities to make the system more relevant to today’s market.
Earnings limits for applicants will also be raised.
Changes to the system will result in the income limit for single applicants becoming the same in all parts of the country.
HOUSE PRICE LIMITS CHANGES
In Dún Laoghaire Rathdown, South Dublin, Dublin City, Fingal, Wicklow and Kildare the house price limit will be raised to €360,000 – an increase of €40,000 from the previous €320,000 limit.
Galway City, Cork City, Louth, Meath, Galway County and Cork County will increase the limit to €330,000 – a €10,000 increase from the previous limit of €320,000.
In Limerick, Waterford, Clare, Wexford, Westmeath and Kilkenny the limit will be increased to €300,000 – a €50,000 increase from the previous limit of €250,000.
For all other municipalities, the limit will be increased to EUR 275,000 – an increase of EUR 25,000 compared to the previous limit of EUR 250,000.
CHANGES IN INCOME CEILINGS
The income limits for single applicants will also be raised from the previous limits of €50,000 and €65,000 to €70,000.
Joint applicants receive an increase from €75,000 to €85,000.
WHO IS ELIGIBLE?
To be eligible for a local authority home loan, you must be a first-time buyer, with the exception of applicants who qualify under the “fresh start” principle and those who have inherited a home.
You must also be between the ages of 18 and 70 and have been in continuous employment for at least two years as the main earner or at least one year as a secondary earner.
As a single applicant, you must earn an annual gross income of no more than €65,000 (gross) in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and less than €50,000 (gross) in all other counties.
As a joint applicant, you must have an annual gross income of no more than EUR 75,000 (gross) in all districts.
You’ll also need to provide certified accounts for two years if you’re self-employed and provide evidence of unsatisfactory mortgage financing offers from two regulated financial providers.
You must not be a current or previous owner of a property in or outside the Republic of Ireland unless you are a ‘fresh start’ applicant.
Applicants must also declare that they are first-time buyers. You must authorize the local authority to carry out the necessary checks to confirm this, such as: B. Conducting a local property tax review.
You must have the property as your usual residence and purchase or build property situated in the Republic of Ireland.
You must buy or build a property that does not exceed the maximum market value applicable to the county in which it is located.
Applicants must also agree to a central credit register check and currently have a legal right to reside and work in the State and be able to show that they are Irish Ordinary Residents.
https://www.thesun.ie/money/10186174/boost-first-time-buyers-changes-state-backed-mortgage-scheme/ Big boost for thousands of Irish first-time buyers as changes are set to be made to the government-backed mortgage scheme