The Local Authority Home Loan (LAHL) Scheme is for the purchase of new or second-hand residential properties and for self-builds. It also includes the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme. It is available nationwide and replaces the Rebuilding Ireland Home Loan scheme, from 4th January 2022.
A ‘Fresh Start’ principle also applies to the Local Authority Home Loans scheme. This means that people who are divorced, legally separated/separated or the relationship has ended and have no financial interest in the family home are eligible to apply under this scheme. People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme.
In line with Central Bank rules, a person or couple can borrow up to 90% of the market value of the property. Under the loan, there are two rate options.
- Fixed rate of 2.495% up to 25 years (APR 2.52%)
- Fixed rate of 2.745% up to 30 years (APR 2.78%)
The Local Authority Home Loan can be used for:
- Private purchase (including self-build)
- Local Authority Tenant Incremental Purchase
There is a cap on the value of the home you can buy. In the Greater Dublin Area, Cork and Galway, the maximum market value is €320,000. In the rest of the country, it is €250,000.
Main Elements
- provides up to 90% of the market value of a property
- the maximum loan amount is €288,000 in the Greater Dublin Area, Cork and Galway
- the maximum loan amount is €225,000 in the rest of the country
- the maximum loan term is 30 years
- the loan is a normal capital and interest-bearing mortgage
- it is repaid on a monthly basis by direct debit
To qualify for a Local Authority Home Loan, applicants must:
- be a first-time buyer, with the exception of applicants qualifying under the Fresh Start Principle
- be aged between 18 and 70 years
- a single applicant must earn less than €65,000 annual gross income in counties Cork, Dublin, Galway, Kildare, Louth Meath or Wicklow or €50,000 in all other counties
- joint applicants must earn less than €75,000 annual gross income combined
- provide proof of insufficient mortgage offer from two regulated financial providers
- be in continuous employment for a minimum of two years as primary earner and a minimum of one year as secondary earner (if self-employed be able to submit two years certified accounts)
- intend to occupy the property as their normal place of residence
- currently have a legal right to reside and work in the State and be able demonstrate that they are habitually resident in Ireland
This is not an exhaustive list so please go to https://localauthorityhomeloan.ie/ for additional information, assistance and the application form.