Catherine Murphy (Kildare North, Social Democrats)
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55. To ask the Minister for Finance the impact analysis conducted on the effect of the 20% minimum deposit rule in respect of potential non first-time home buyers who are trapped in crowded housing conditions in view of the fact they cannot afford a 20% deposit; and if he will make a statement on the matter. [44552/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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The Central Bank is the macro prudential authority in Ireland.  The bank has advised that the macro prudential mortgage measures are now in place as a permanent feature of the market and 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 measures in 2016, which confirmed that it is effective, and is contributing to financial and economic stability by reducing the risk of unsustainable lending and borrowing. 

The measures limit the amount of high loan-to-income (LTI) and loan-to-value (LTV) mortgages.  For principal dwelling mortgages the LTI limit is 3.5.   For first-time buyers (FTBs) the LTV limit is 90 per cent, while for second and subsequent buyers (SSBs) the limit is 80 per cent.  In the case of the LTV limits as they pertain to SSBs, 20 per cent of the value of SSB lending per year is allowed to be over the 80 per cent LTV limit.  Borrowers who are currently in negative equity and want to move home by purchasing another property are completely exempt from the LTV limits.

In line with their procedures, the Central Bank reviews the calibration of the mortgage measures on an annual basis given prevailing market conditions and with respect to the objectives of the measures.  According to the Central Bank this year’s review will culminate in the decision of the Bank’s Commission on the appropriate calibration of the measures for 2018 at its meeting on 28 November of this year.