Affordable purchase schemes are aimed at people who cannot afford to purchase a new build home at its full purchase price, based on their ability to receive a 90% mortgage from a financial institution (using the current macro prudential rules of 4 times your income).
The affordable purchase price will be calculated by Laois County Council based on the “purchasing power” of eligible applicants. This calculation considers an eligible applicant’s maximum mortgage capacity and savings, and the minimum price set for the home by the Council.
In general, the maximum income limit for an affordable home is 85.5% of the open market value of the home divided by 4. See example below
| Open Market Value | €350,000 |
|---|---|
| 85.5% of Open Market Value | €229,250 |
| Divided by 4 | €74,812 = Maximum income limit |
The below table shows an example of varying applicant incomes and how they determine the affordable purchase price and the Council’s equity share of an affordable home with a market value of €300,000.
Please note the below is an example and not based on any specific scheme being offered by Laois County Council. Purchase prices will differ from scheme to scheme.
You can see that the higher an applicant’s income is, the more they will contribute to the price and the less of an equity share the Council will take. The Council will work this out for you as each house's price will differ.
Example of an affordable home with a market value of €300,000
| Income | Equity % | Equity Amount | Standard Mortgage Capacity | Deposit | Purchaser Pays |
| €64,125 | 5.00% | €15,000 | €256,500 | €28,500 | €285,000 |
| €64,000 | 5.19% | €15,556 | €256,000 | €28,444 | €284,444 |
| €63,000 | 6.67% | €20,000 | €252,000 | €28,000 | €280,000 |
| €62,000 | 8.15% | €24,444 | €248,000 | €27,556 | €275,556 |
| €61,000 | 9.63% | €28,889 | €244,000 | €27,111 | €271,111 |
| €60,000 | 11.11% | €33,333 | €240,000 | €26,667 | €266,667 |
| €59,000 | 12.59% | €37,778 | €236,000 | €26,222 | €262,222 |
| €58,000 | 14.07% | €42,222 | €232,000 | €25,778 | €257,778 |
| €57,000 | 15.56% | €46,667 | €228,000 | €25,333 | €253,333 |