More Homebuyers Now Eligible For Local Authority Home Loan
The Minister for Housing, Local Government and Heritage, Darragh O’Brien, announced significant improvements to the Local Authority Home Loan that will result in more people being eligible to apply for the State-backed mortgage. The prices of homes eligible for a Local Authority Home Loan and income limits of those eligible to apply for a loan are being increased.
The loan was launched in January 2022 as part of Housing for All. It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It can be used for new, second hand or self-build homes. It means those on more moderate incomes are helped by the State to achieve homeownership, a key aim for this government.
The following changes to the Local Authority Home Loan will come into effect on 1 March 2023.
Increases to House Price Limits for All Local Authorities Areas
- Increase from €320,000 to €360,000 – Dun Laoghaire Rathdown, South Dublin, Dublin City, Fingal, Wicklow, Kildare.
- Increase from €320,000 to €330,000 – Galway City, Cork City, Louth, Meath, Galway County, Cork County.
- Increase from €250,000 to €300,000 – Limerick, Waterford, Clare, Wexford, Westmeath, Kilkenny.
- Increase from €250,000 to €275,000 – Offaly, Laois, Monaghan, Cavan, Donegal, Tipperary, Kerry, Mayo, Roscommon, Sligo, Leitrim, Longford, Carlow.
Increased Income Limits for All Applicants in Each Local Authority Area
- Increase from €50,000 and €65,000 to €70,000 for all single applicants nationwide.
- Increase from €75,000 to €85,000 for all joint applicants nationwide.
Speaking after the announcement, Minister O’Brien said, “I am delighted to announce these improvements to the Local Authority Home Loan which will take effect from 1 March. 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.”
“Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed 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.”
Since February 2018 over 3,300 people have got on the property ladder through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.