Tuesday, 14 May 2019
Department of Housing, Planning, and Local Government
Local Authority Housing Mortgages
490. To ask the Minister for Housing, Planning, and Local Government the position in respect of the interest rate on local authority mortgages; if existing local authority mortgage holders can avail of the lower rates available under the Rebuilding Ireland home loan scheme; and if he will make a statement on the matter. [20335/19]
Following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, a new loan offering known as the Rebuilding Ireland Home Loan was introduced, with effect from 1 February 2018.
The low interest rates for the Rebuilding Ireland Home Loan have been secured through the raising of €200 million by the Housing Finance Agency (HFA) on a fixed-rate basis for periods out to thirty years' maturity. Based on the pricing achieved, local authorities can offer a first tranche of fixed-rate annuity finance to eligible borrowers at rates of 2.0% and 2.25% per annum, for terms of up to 25 and 30 years respectively, up to an aggregate maximum of €200 million.
As such, these conditions are solely available to new applicants under the specific terms and conditions of the Rebuilding Ireland Home Loan. Existing local authority mortgage holders remain subject to the terms and conditions of their loans as originally agreed at the point of drawdown of their individual loans.