What is the Rebuilding Ireland Home Loan?

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The Rebuilding Ireland Home Loan is a government backed mortgage loan that works to make home ownership more affordable for first-time buyers. It became available during the beginning part of 2018, and it can be used to purchase a new or second-hand home, or be used to build your own home. 

Rebuilding Ireland Home Loan Explained

The Rebuilding Ireland Home Loan is a normal capital and interest-bearing mortgage loan that is repaid on a monthly basis. Essentially, this means that repayments are made monthly and consist of contributions made to both the capital of the loan and the interest that accumulates on the loan. The capital refers to the amount borrowed from the lender, while the interest refers to the additional cost that is incurred from borrowing the capital. 

A maximum of 90% of the market value of the home can be borrowed in this loan. Additionally, there are limits to the market values of homes that can be purchased or self-built with this loan. The maximum market value in Cork, Dublin, Galway, Kildare, Louth, Meath, and Wicklow is €320,000 and €250,000 in the rest of the country.

Eligibility Requirements

There are several eligibility requirements that must be satisfied in order to qualify for the Rebuilding Ireland Home Loan. A few of these requirements include that you must be a first-time buyer, between the ages of 18 and 70, occupy the home as your normal place of residence, and consent to an Irish Credit Bureau check. An exhaustive list of eligibility requirements can be found here. 

Interest Rate Options

Two fixed interest rate options are offered in the Rebuilding Ireland Home Loan. The first option is 2.754% fixed for up to 25 years (APR 2.78%), while the second option is 2.995% fixed for up to 30 years (APR 3.04%). The APR, or annual percentage rate, accounts for the other costs of the loan like closing costs and lender fees and is, therefore, higher than the interest rate. The APR offers a more holistic view on the total cost of the mortgage. 

Application Process

To apply for the Rebuilding Ireland Home Loan, you can fill out an application on the Rebuilding Ireland Home Loan website. The application must be completed in its entirety with the necessary supporting documents outlined in the applicant checklist also included. It is recommended that applications be submitted in person to ensure that all information is completed accurately.

The Rebuilding Ireland Home Loan can be a great option for those who qualify and has aided in making home ownership more widely available in Ireland.