Written answers

Tuesday, 5 October 2021

Department of Housing, Planning, and Local Government

Housing Schemes

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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283. To ask the Minister for Housing, Planning, and Local Government when the new limits for the Rebuilding Ireland home loan scheme will come into effect; the gross income limit for single applicants and couples, respectively; and if changes will be made to the maximum loan to be issued. [47542/21]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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As part of Housing for All, I announced a reformed successor to the Rebuilding Ireland Home Loan Scheme, the 'Local Authority Home Loan'. The Local Authority Home Loan will include an increase in the income ceiling for single applicants.

For counties where the scheme’s house price limit is €320,000 (Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow), the income ceiling for a single applicant will be €65,000. This will be an increase of €15,000 on the €50,000 income ceiling under the current Rebuilding Ireland Home Loan scheme. In the rest of the country where the scheme’s house price limit is €250,000, the income ceiling for a single applicant will remain €50,000. The income ceiling for joint applicants is €75,000. The maximum loan amount will remain €288,000. I look forward to announcing further details in respect of the Local Authority Home Loan in the coming months.

I have already implemented a reduction of the mortgage interest rate for new borrowers by 0.25% under the existing Rebuilding Ireland Home Loan (RIHL), as from 10 September 2021. This lower rate will also apply to loans issued under the forthcoming Local Authority Home Loan.

I also announced a ‘Fresh Start’ principle for applications to State affordable housing and loan schemes. This means that people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply.

Photo of Richard BrutonRichard Bruton (Dublin Bay North, Fine Gael)
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284. To ask the Minister for Housing, Planning, and Local Government when the new interest rate will be in place for the Rebuilding Ireland home loan; the interest rate which will apply; the mortgage protection rate that will be charged; and the estimated monthly repayments on a €200,000 loan taken out over 30 years. [47543/21]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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As part of Housing for All, I announced a reformed successor to the Rebuilding Ireland Home Loan Scheme (RIHL), the 'Local Authority Home Loan'. I also announced an interest rate reduction of 0.25% on local authority mortgage lending.

As of 10 September 2021, the reduction of the mortgage interest rate for new borrowers by 0.25% has already been implemented. It currently applies to new mortgages issued under the existing RIHL and this lower rate will also apply to loans issued under the forthcoming Local Authority Home Loan.

The local authority mortgage protection insurance scheme has applied to all house purchase loans approved by local authorities after 1 July 1986, including the RIHL introduced on 1 February 2018. Local authority mortgage protection insurance is currently charged at the rate of 0.555%, this rate does not vary between local authorities.

The estimated monthly repayment on a RIHL €200,000 loan taken out over 30 years is €908.45, including an interest rate of 2.745% and the current 0.555% MPI rate.

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