Niamh Smyth (Cavan-Monaghan, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

80. To ask the Minister for Finance if correspondence (details supplied) will be reviewed; and if he will make a statement on the matter. [39281/24]

Jack Chambers (Dublin West, Fianna Fail)
Link to this: Individually | In context | Oireachtas source

HomeBond is one of the providers of latent defect insurance, also known as structural defect insurance (SDI). This type of insurance offers a 10-year warranty that covers major structural defects in new buildings after construction. The object of SDI is to provide cover for a stated length of time in respect of the repair of major structural defects in new homes.

Regarding Government intervention, the Minister for Finance cannot direct the pricing or provision of insurance products, as this is a commercial matter which individual companies assess on a case-by-case basis. Insurers take a risk-based approach to the provision and pricing of insurance and the Government cannot intervene in this regard. As this issue primarily relates to construction standards and building materials, it falls under the responsibility of the Department of Housing, Local Government, and Heritage. Accordingly, any questions regarding building regulations should be directed to that Department.

The Central Bank of Ireland regulates mortgage providers and ensures consumer protection and financial stability. However, decisions regarding the approval or denial of mortgage applications are business decisions made by individual lenders. While the Central Bank sets regulatory guidelines, mortgage providers may, as part of their own policies, require a borrower to secure certain types of insurance, including SDI. This is a commercial choice by the lender, not a legal requirement, and the Minister for Finance has no authority over these decisions.

If a consumer is dissatisfied with how a mortgage provider has handled their application or feels that the lender is not adhering to Central Bank regulations, they can first file a complaint with the lender. If the response is unsatisfactory and the consumer is unable to resolve the complaint with the lender, the complaint can then be referred to the Financial Services and Pensions Ombudsman, which can be contacted at or (01) .