Rebuilding Ireland Home Loan
You may be eligible for a Rebuilding Ireland home loan from the Council if you cannot obtain sufficient finance from two commercial lending agencies to purchase a house.
Documentary evidence of being unable to obtain sufficient finance must be provided to the Council.
Who can apply?
First time buyers aged between 18 and 70 years.
Single applicants must not be earning greater than €50,000 per annum and must be in 2 years continuous employment.
The combined income of joint applicants must not be greater than €75,000 per annum. The primary earner on the application must be in continuous employment for at least two years with the second applicant in continuous employment for at least one year.
How much can be borrowed?
The maximum loan amount is limited to 90% of the purchase price of the property. The maximum loan amount is €288,000 in areas (Dublin, Meath, Wicklow, Kildare, Louth, Cork and Galway) reflecting the higher market values of properties in these areas with a lower maximum loan amount of €225,000 applying elsewhere including Sligo. The maximum mortgage loan in each case is to be determined by the Council in accordance with the Credit Policy and subject to the maximum market value limit(s), the loan to value (LTV) limit of 90% and the purchaser’s ability to repay.
What is the Term?
The maximum loan term is 30 years.
What is the interest rate?
For loans with terms of up to 25 years a fixed interest rate of 2.745% shall apply
For loans with terms of up to 30 years a fixed interest rate of 2.995% shall apply
All rates are exclusive of Mortgage Protection Insurance (MPI) which is a requirement of borrowing and is therefore compulsory.
What type of property can be purchased?
It is the applicant’s choice but the Local Authority must be satisfied that the property is reasonably priced, of suitable size and free from structural defects. The gross internal floor area of the property must not exceed 175m2.
Maximum market values of the property that can be purchased or self-built are:
€320,000 in the counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and €250,000 in the rest of the country including Sligo.
The minimum deposit required is 10% of which 3% needs to be evidenced by way of a credible savings record. Gifts are permissible up to 7% of the market value of the property where their source is verified. Unidentified lump sum lodgements, made within 12 months prior to the application being made cannot be considered when computing the deposit.
- A website which has been set up by the Dept of Housing,Planning and Local Goverement gives full background on the new loan www.rebuildingirelandhomeloan.ie
- A National Help Desk has been set up to answer queries in relation to the scheme and their contact number is 051-349720 (8.00a.m. – 5.00p.m.)
- A borrower information booklet has also been developed for the new loan. The booklet is available to download from www.rebuildingirelandhomeloan.ie or a hard copy can be got from the Council.
Social Housing applicants and applicants for the Rebuilding Ireland Home Loan should note that in light of the COVID-19 emergency, a temporary alternate arrangement has been put in place that will remove the need for them to have to obtain a physically completed HPL1 form from Revenue, either in person, by post, or by Revenue’s online systems ROS/MyAccount.
Instead, the applicant can request that the local authority undertake an electronic process to obtain the information from the Revenue Commissioners. Persons who wish to avail of this option should contact their local authority and request that the relevant HPL1 information be obtained on their behalf by the local authority.
You can contact the Sligo County Council Housing Department on 071 911 1111.
- An Application Form for the new loan is available to download from the dedicated website, www.rebuildingirelandhomeloan.ie
- You should ring 071 911 1815 to arrange to submit your application in person, as posted applications are frequently not completed correctly and have to be returned.