Eoghan Murphy (Dublin Bay South, Fine Gael) | Oireachtas source

I wish to say to the Deputy that this is a revelation today. I was clear with the Dáil and I can direct attention to parliamentary questions on 5 and 26 February but also to previous conversations we have had at committee about the operation of this loan.

The Rebuilding Ireland home loan is incredibly worthwhile and supportive of people trying to buy their first home. Time and again Deputies were come into the House to say that it is not working. Today we see clearly and know that it is working so well that it is working better than anticipated, because the additional €200 million of funding was a tranche that was meant to be there for three years, but only a year and a month into the operation of the scheme we have already seen hundreds of people approved and drawing down and hundreds more waiting to draw down their loans.

We have dual applications because people are applying to different local authorities depending on where they intend to buy their homes. We also have cases where some loans are approved but not drawn down. That happens for many reasons. The lag between an approval and a drawdown is not necessarily on the local authority's side. Once one get's approval for a mortgage it takes time to find a home, to complete the sale and to do all the things that one has to do when someone is buying a home. In those circumstances, that is where a delay can arise and that is often the case. Sometimes a loan is not drawn down at all because the circumstances or the choice of the individual changes. I indicated to the Dáil that we would need to look for a second tranche when the first tranche did expire. Only half of the first tranche has been drawn down to date. That is why at the moment I am in negotiations with the Department of Public Expenditure and Reform about a further tranche to ensure we can continue with the Rebuilding Ireland home loan. It has been successful in helping hundreds of people to buy their first home and we want to see that happen for hundreds more.

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