The Cabinet will be briefed by Minister for Housing Darragh O’Brien today on plans to increase thresholds for a State-backed mortgage scheme for people who cannot get loans to buy homes from banks.
The Local Authority Home Loan was launched in January of last year as party of the Government’s Housing for All strategy.
The loans can be used for new, second-hand or self-build homes.
Minister O’Brien is increasing the price limits for all local authorities so the scheme is more relevant for today’s market.
The ceilings for earnings for applicants will also rise.
The income limit for single applicants, which were increased this time last year in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, will be increased and will now be the same in all parts of the country.
Concerns have previously been raised about the eligibility criteria for the scheme being too restrictive.
Last October, RTÉ News reported that 62% of 1,483 applicants were turned down.
Since February 2018, more than 3,300 have bought a home through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.
Changes to house price limits:
€360,000 (€40,000 increase from previous €320,000 limit) – Dún Laoghaire Rathdown, south Dublin, Dublin city, Fingal, Wicklow, Kildare.
€330,000 (€10,000 increase from previous €320,000 limit) – Galway city, Cork city, Louth, Meath, Galway county, Cork county.
€300,000 (€50,000 increase from previous €250,000 limit) – Limerick, Waterford, Clare, Wexford, Westmeath, Kilkenny.
€275,000 (€25,000 increase from previous €250,000 limit) – All other local authorities.
Changes to income ceilings:
Single applicants increase from previous limits €50,000 and €65,000 to €70,000.
Joint applicants increase from €75,000 to €85,000.
Article Source: Cabinet to hear planned changes to State-backed mortgage scheme – David Murphy – RTE