As of February 1st, 2018 the Irish government has supported and backed a new type of mortgage called Rebuilding Ireland Home Loans that have been made available to new first-time home buyers. This loan can be accessed through local authorities across the nation and is used to purchase new properties, second-hand properties, and to help build your own house. But, how do you know if this is the right kind of loan for you? We will discuss in more detail the specifics of the loan as well as the requirements necessary to qualify so that you can decide if you want to look into getting the Rebuilding Ireland Home Loan.
How Much Can You Borrow?
Approved applicants are allowed to borrow for their loan up to 90% of the market value of the desired property with a ceiling on the purchase price of €250,000 in most counties. However, there are some counties with an exception that have a higher maximum purchase price of €325,000. The counties with the higher maximum purchase price are as follows:
- Dublin
- Cork
- Galway
- Kildare
- Wicklow
- Meath
- Louth
If you do the math, this means that the most you can borrow in the counties listed above is €288,00, and in all other counties in Ireland the highest amount that you can borrow using the Rebuilding Ireland Home Loan is €225,000.
What are the Interest Rates?
The Rebuilding Ireland Home Loan offers two fixed interest rates for approved applicants. The rates are as follows:
- 2.745% fixed rate for up to 25 years (ARPC of 2.78%)
- 2.995% fixed rate for up to 30 years (ARPC of 3.04%)
It is important to note that these rates do not include mortgage protection insurance. This means that you will have to use you local authority’s collective MPI scheme and make regular payments for that insurance on top of your regular monthly mortgage loan repayments.
Who Qualifies?
In order to qualify for the Rebuilding Ireland Home Loan an applicant must meet a certain set of requirements. The requirements are as follows:
- First-time buyer
- Between 18 and 70 years of age
- Continuously employed for a minimum of two years as a primary applicant, or one year if you are a secondary applicant
- Annual gross income of not more than €50,000 as a single applicant or not more than €75,000 combined as joint applicants
- Submit two years certified accounts if they are self-employed
- Able to show evidence that they have been turned down for a mortgage by two banks or building societies
- Never owned residential property in or outside the Republic of Ireland
- Occupies the property as their normal place of residence
- They can not purchase or build property in the Republic of Ireland larger than 175 square meters
- They can not purchase or build a property which does not exceed the maximum market value that applies to the county it is located in
- They must consent to an Irish Credit Bureau check