MINISTER FOR HOUSING and Local Government Darragh O’Brien today announced significant changes to the Local Authority Home Loan that will allow more people to apply for a state-backed mortgage.
The maximum price of homes eligible for a state-backed mortgage and the upper income limits for applicants will increased on 1 March.
The income limits for all single applicants nationwide are currently €65,000 for counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and €50,000 for all other counties.
This will rise to a maximum of €70,000 while limits for joint applicants will increase from €75,000 to €85,000.
This will allow more people on moderate incomes to be eligible for state-backed mortgages, while house price limits have also been adjusted upwards for all local authorities.
The current maximum house price limit for Dun Laoghaire Rathdown, South Dublin, Dublin City, Fingal, Wicklow and Kildare of €320,000 will be raised to €360,000.
House price limits for Galway City, Cork City, Louth, Meath, Galway County and Cork County will increase from €320,00 to €330,000.
Limerick, Waterford, Clare, Wexford, Westmeath and Kilkenny will see a change in the limit from €250,000 to €300,000.
An increase from €250,000 to €275,000 will also come into effect for Offaly, Laois, Monaghan, Cavan, Donegal, Tipperary, Kerry, Mayo, Roscommon, Sligo, Leitrim, Longford and Carlow.
The Local Authority Home Loan was launched in January 2022 as part of Housing for All with the aim of supporting borrowers who are unable to get finance from commercial banks for a home.
It can be used for new, second hand or self-build homes but applicants must provide proof of insufficient mortgage offers from two regulated financial providers.
Applicants can apply for mortgages of up to 90% of a property’s value.
Speaking after today’s announcement, Minister O’Brien said:
“Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people can access the loan.
“The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan.
“The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people who want to own their own home.”
In the past five years over 3,300 people have gotten a mortgage through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.
O’Brien, along with Public Expenditure and Reform Minister Paschal Donohoe, will sign the amendment regulations in the coming weeks.