Micheál Martin (Cork South Central, Fianna Fail)
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150. To ask the Minister for Finance his views on the effect the mortgage deposit rules are having on persons' ability to purchase homes; and if he will make a statement on the matter. [37810/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank of Ireland, in line with its mandate to safeguard financial stability, has put in place macro-prudential measures for residential mortgage lending.  These measures apply proportionate loan-to-value and loan-to-income limits to mortgage lending by regulated financial service providers in the Irish market.  

The Central Bank is independent in the formulation and implementation of these macro prudential measures and they are now a permanent feature of the residential mortgage market.  The Central Bank advises that they are operating in line with their stated objectives of enhancing the resilience of banks and borrowers to future shocks and reducing the risk of credit house price spirals from developing.

The Central Bank undertook a broad-based review of the overall framework of the mortgage lending measures in 2016, which confirmed that it is effective and that it is contributing to financial and economic stability by reducing the risk of unsustainable lending and borrowing.  The Central Bank continuously monitors developments in the housing and credit markets, and it regularly publishes relevant analysis though its Macro-Financial Review and Household Credit Market Report.  The Bank has indicated that, having regard to recent data from the Banking Payments Federation Ireland and the Central Statistics Office on residential mortgage activity and overall transactions in the market, it is estimated that the share of home-buyer transactions financed by a mortgage has risen from 60.3 per cent in the year ending 2016q2 to 68.8 per cent in the year ending 2017q2.

In line with its procedures, the Central Bank reviews the calibration of the mortgage lending measures on an annual basis having regard to prevailing market conditions and the objectives of the measures.  I am advised that it is expected that this year’s review will culminate in a decision on the appropriate calibration of the measures for 2018 at a meeting of the Central Bank Commission on 28 November next.