Thursday, 17 December 2020
Department of Housing, Planning, and Local Government
Home Loan Scheme
342. To ask the Minister for Housing, Planning, and Local Government his plans to reduce the requirement to have 30% savings to qualify for a Rebuilding Ireland home loan as many persons find it difficult to save due to the excessive rents they have to pay; the number of loans approved to date by county and year; the number drawn down; and if he will make a statement on the matter. [44349/20]
The Rebuilding Ireland Home Loan Scheme is designed to enable credit worthy first-time buyers to access sustainable mortgage lending to purchase new or second-hand properties. 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.
To support prudential lending and consistency of treatment for borrowers, a Loan to Value ratio of 90% applies to the Rebuilding Ireland Home Loan. Therefore, in order to avail of the loan, applicants must have a deposit 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. The cash savings should be no less than 3% of the market value of the property. Gifts are permissible up to 7% of the market value of the property, where their source is verified.
For prospective purchasers of newly-built properties, the availability, through the Revenue Commissioners, of the Help to Buy Initiative for first-time buyers may provide additional assistance to prospective applicants for the Rebuilding Ireland Home Loan.
My Department publishes information on the overall number and value of (i) local authority loan approvals and (ii) local authority loan drawdowns. Local authority approval means that an official letter of offer has been sent to a borrower (and therefore relates to a specific property and loan amount).
Information on the Rebuilding Ireland Home Loan for 2019 and up to Q2 2020, including the number and value of mortgage approvals and drawdowns, as well as average loan amounts, are available on my Department's website at the following link:
This information will be updated on a quarterly basis as additional data is compiled.
Information on the Rebuilding Ireland Home Loan for 2018 is also available through this link and can be found under local authority loans approved and local authority loans paid, however these figures are not detailed by loan type.