Aindrias Moynihan (Cork North West, Fianna Fail)
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212. To ask the Minister for Housing, Planning, and Local Government the status of the review into the Rebuilding Ireland home loan scheme; and if he will make a statement on the matter. [8908/19]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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The Rebuilding Ireland Home Loan scheme was launched in February to replace the existing House Purchase and the Home Choice Loan schemes. It has been established under the Housing (Rebuilding Ireland Home Loan) Regulations 2018, which also provide for the issuance of a statutory Credit Policy. The purpose of the Credit Policy is to set out in more detail the eligibility criteria for obtaining a loan and procedures to be followed by local authorities in considering loan applications.

In order to assist the on-going administration of the Rebuilding Ireland Home Loan, I asked my Department to undertake a review of the operation of the scheme, including any requirements to update the Credit Policy. In carrying out the review, the Department has consulted with a number of local authorities, the Housing Agency and the Housing Finance Agency. The review will also have regard to the views raised by public representatives since the scheme's commencement. However, in making any recommendations in relation to the operation of the scheme, it will also take account of the need to ensure that lending issued under it is provided on a prudential basis, so as to protect the financial interests of the borrowers and the local authorities.

The review is at an advanced stage and is due to be finalised shortly.

Anne Rabbitte (Galway East, Fianna Fail)
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213. To ask the Minister for Housing, Planning, and Local Government if a person who wishes to avail of a loan under the Rebuilding Ireland home loan scheme and wishes to self-build can use the site as a deposit or part of in view of the fact that all other financial institutions on self-builds allows same; and if he will make a statement on the matter. [8928/19]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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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.

In the case of a self-build property, a loan can be made 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. The value of the site cannot therefore be used as a deposit.

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. The cash savings should be no less than 3% of the market value of the property. Gifts of cash are permissible up to 7% of the market value of the property, where their source is verified.

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.

Anne Rabbitte (Galway East, Fianna Fail)
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214. To ask the Minister for Housing, Planning, and Local Government if planning permission is sufficient for initial approval of a loan when a person applies for a Rebuilding Ireland home loan on a self-build; and if he will make a statement on the matter. [8934/19]

Eoghan Murphy (Dublin Bay South, Fine Gael)
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Applicants for the Rebuilding Ireland Home Loan, whether to purchase or self-build, must first of all satisfy all the eligibility criteria, details of which are available on the dedicated website, .

Applicants applying for loan approval to build their own home may be approved for a loan, subject to the condition that they obtain planning permission for the site on which the construction is to occur. However they must have full planning permission for the site before they will be allowed to draw down the loan.

In addition to this, applicant(s) are required to submit with their loan application a valuation report that details the site value, cost of works and post construction market value of the completed property.  The valuation report is required to be completed by an independent valuer and will be considered by the local authority in assessing the associated loan application.