Shane Cassells (Meath West, Fianna Fail)
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762. To ask the Minister for Housing, Planning, and Local Government if an applicant can be granted a mortgage to cover 100% of construction costs on a self-build home under the Rebuilding Ireland home loan scheme; the rules and criteria regarding the 10% deposit in this instance; and if he will make a statement on the matter. [6839/19]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Rebuilding Ireland Home Loans are provided in accordance with the Housing (Rebuilding Ireland Home Loans) Regulations 2018 and the statutory credit policy issued in accordance with the Regulations. The Regulations and the credit policy stipulate that, subject to the maximum purchase price allowed, a maximum of 90% of the value of the property can be borrowed by approved applicants. In the case of a self-build property, a loan can be provided up to 90% of either the construction cost, or in the case where the site is also being purchased the construction cost plus the cost of purchasing a site. However, in both these instances, 90% of the loan being sought is the maximum amount that will be approved. A 100% mortgage cannot therefore be granted.

The low rate of fixed interest associated with the Rebuilding Ireland Home Loan provides first-time buyers with access to mortgage finance that they may not otherwise have been able to afford at a higher interest rate. One of the key conditions of the Rebuilding Ireland Home Loan is that prospective applicants must demonstrate that they have had inadequate loan offers from two commercial lenders.

To support prudential lending and consistency of treatment for borrowers, a Loan to Value ratio of 90% applies to the Rebuilding Ireland Home Loan as per the Central Bank's prudential lending guidelines. Therefore, in order to avail of the loan, applicants must have a deposit of funds equivalent to 10% of the market value of the property.

Applicants must provide bank or similar statements (such as post office, credit union, etc.) for a 12-month period immediately prior to making an application, clearly showing a credible and consistent track record of savings. Gifts in the form of cash are permissible up to 7% of the market value of the property, where their source is verified. The cash savings of the applicant should be no less than 3% of the market value of the property.

Decisions by local authorities as to whether to advance a loan to an individual are taken on a case-by-case basis, within the criteria as set out in the credit policy. Each local authority must have in place a credit committee which makes the final decision on applications for loans. There is also an appeal procedure in each local authority so that those who are not satisfied with a decision regarding their application can have the decision reviewed.

For prospective purchasers of new-build or self-build properties, the applicant may also be eligible for the Help to Buy Initiative for first-time buyers through the Revenue Commissioners. This could provide additional assistance of up to 5% of the purchase or construction price of relevant properties, which represents a significant contribution towards the relevant deposit requirements. A range of eligibility criteria applies to applications under the Help to Buy Initiative, and full details are available on the website of the Revenue Commissioners at .