Terence Flanagan (Dublin North East, Fine Gael)
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Question 120: To ask the Minister for Finance the help available for first-time home buyers who find it difficult to get a deposit together (details supplied); and if he will make a statement on the matter. [12234/12]

Michael Noonan (Limerick City, Fine Gael)
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The banking system restructuring plan creates capacity for the two pillar banks, namely Bank of Ireland and AIB to provide lending in excess of €30 billion in the next three years. SME and new mortgage lending for these banks is expected to be in the range of €16 to €20 billion over this period. The lending capacity is incorporated into the banks' deleveraging plans which allow for repayment of Central Bank funding through asset run-off and disposals over the period to 2013. It is a commercial decision for each lending institution to decide the amount of deposit that it requires from each borrower who is seeking mortgage approval. It is important that each lending institution is allowed to assess properly and independently the risks when deciding on the level of deposit that it requires.

The Deputy may be aware that the changes which I announced in the Budget last December mean that individuals who take out qualifying loans in 2012 as first time buyers will now receive relief at a rate of 25% on ceilings of€10,000/€20,000, single/married as opposed to the previously proposed rate of 15% on ceilings of €3,000/€6,000. This will give a maximum relief in 2012 of €2,500 for single and €5,000 for married persons.