Michael McGrath (Cork South Central, Fianna Fail) | Oireachtas source

While it would be good to require some level of minimum deposit, a 20% deposit requirement would be excessive in the majority of cases. I would have thought a deposit of between 10% and 12% would be more realistic and achievable for people seeking to buy a home for the first time. It seems from a reply to a parliamentary question that I received last night that these rules will not apply to institutional investors. It seems that private equity funds buying portfolios of residential properties will not come under the requirements of the new Central Bank rules. That is an issue. As a member of the Joint Committee on Finance and Public Expenditure and Reform, I will play my part in examining the mortgage insurance scheme. I welcome the Minister's statement that he is in favour of private sector involvement. My own view is that, to be frank, the State has enough contingent liabilities. I would be reluctant, therefore, to allow the State to sign up to further liabilities. This proposal needs to be examined on its own merits. Will the Minister be making a submission on behalf of the Government in the coming weeks?

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