Minister expands local authority home loan scheme

Darragh O’Brien says scheme will make owning a home easier for single people

An expanded local authority home loan scheme, which seeks to make it easier for single people to access State-backed mortgages, has been launched by Minister for Housing Darragh O'Brien.

The scheme, which comes into effect from January 4th, is open to all first-time buyers and to “fresh start” applicants on low or modest incomes.

Houses purchased under the scheme cannot have a value in excess of €320,000 in Dublin, Cork, Galway, Meath, Kildare, Louth or Kildare and €250,000 elsewhere.

Income ceilings also apply. Single applicants cannot have income in excess of €65,000 if seeking to purchase a home in the €320,000 house price areas; the income ceiling is €50,000 otherwise. The income ceiling for joint applicants is €75,000 nationwide.


Mr O’Brien said supporting home ownership was a “key objective” for the Government, with this scheme being a step in achieving that.

“The new regulations will make it easier for single people to avail of a State-backed mortgage for a new, second-hand or self-build home,” he said.

“A ‘fresh start’ principle also applies which means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply also.”

The scheme will operate in a similar way to previous local authority loan products, by assisting borrowers in securing an affordable, long-term fixed rate mortgage to purchase a home of their own.

Applicants for the local authority home loan must have been unable to obtain sufficient financing from a commercial lender to be eligible.

Shauna Bowers

Shauna Bowers

Shauna Bowers is Health Correspondent of The Irish Times