Paul Kehoe (Wexford, Fine Gael)
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115. To ask the Minister for Housing, Planning, and Local Government the supports that are available for a person who is not able to qualify for the help to buy scheme due to not meeting the loan to value ratio; and if he will make a statement on the matter. [10287/22]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Help-to-Buy scheme is the policy responsibility of the Minister of Finance. The appropriate loan-to-value ratio is a matter for that Minister.

My Department has a number of policies in place to support homeownership.

The Local Authority Home Loan is a Government backed mortgage for those on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022. The loan can be used both for new and second-hand properties, or to self-build.

To support prudential lending and consistency of treatment for borrowers, a maximum Loan-to-Value ratio of 90% as per the Central Banks lending guidelines applies to this loan. There is no minimum loan-to-value ratio, however it is only available to applicants who cannot obtain sufficient offers of finance on the market.

For single persons, the income ceiling is EUR65,000 for persons seeking to purchase in home in Dublin, Louth, Wicklow, Laois, Wicklow, Meath, Cork and Galway, and EUR50,000 in the rest of the country. The income limit for joint applicants is EUR75,000. House price limits also apply, the maximum house price is EUR320,000 in Dublin, Louth, Wicklow, Laois, Wicklow, Meath, Cork and Galway, and EUR250,000 in the rest of the country.

To avail of the loan applicants must have a deposit equivalent to 10% of the market value of the property. The applicant(s) must provide bank or similar statements (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.

Further information, including a Home Loan Calculator and the Application Form is available on the website localauthorityhomeloan.ie/.

In relation to measures that support more affordable housing more generally, the Affordable Housing Act 2021, the first ever standalone affordable housing legislation, established a basis for four new affordable housing measures. These measures will deliver on the Programme for Government commitment to put affordability at the heart of the housing system and prioritise the increased supply of affordable homes through (1) delivering affordable homes on local authority lands, (2) the introduction of a new form of tenure in Cost Rental, (3) a First Home shared equity scheme and (4) expanding Part V planning requirements to increase the 10% contribution requirement to 20% and to apply it to cost rental as well as social and affordable housing.

The Local Authority Affordable Purchase Scheme will support purchasers of Local Authority-delivered new homes by bridging the gap between the market value of the home and the combined value of the buyer's mortgage and deposit. Regulations to set out the detailed criteria are at an advanced stage and will be issued in the coming weeks. The first homes delivered through the scheme will be located in Cork City in the coming weeks. Cork City Council indicated the prices to be €218,000 for a 2-bedroom and €243,000 for a 3-bedroom dwelling.

The First Home affordable purchase shared equity scheme, established under Part 4 of the Affordable Housing Act, will act in a similar way to the Local Authority-led scheme, but will support purchases of newly constructed homes on the private market. This scheme will be available in every county and will incorporate regional price caps based on median house price sales. Confirmation of the final details of this scheme is ongoing in conjunction with the relevant stakeholders and it is anticipated that the First Home scheme will be available for applications from mid year.