Frequently Asked Questions
Who can apply for a Rebuilding Ireland Home Loan?
The Rebuilding Ireland Home Loan is available to first-time buyers who meet all of the following conditions:
- Aged 18 years - 70 years.
- For single applicants:
- is earning a gross income of less than €50,000, and
- is in 2 years continuous employment (including self-employment) prior to application.
- For joint applicants:
- are earning a combined gross income of less than €75,000, and
- where both applicants are working, the primary applicant is in 2 years continuous employment (including self-employment), and the second applicant is in 1 year continuous employment (includes self-employment) prior to application.
- Applicant(s) must have received insufficient offers of finance from two mortgage lenders.
- Applicants must satisfy any other conditions and/or requirements, as stipulated by the local authority.
Am I eligible if I am not a first-time borrower?
What evidence of insufficient offers of finance is acceptable?
Applicant(s) must have received insufficient offers of finance from two mortgage lenders to apply for a Rebuilding Ireland Home Loan. Examples of acceptable evidence of this are:
- A letter of inadequate loan offer from a bank or building society
- A letter stating that your application is outside the lending criteria of the bank or building society
- A lender calculator output sheet showing inadequate loan capacity for the amount sought from your local authority
In all instances, the evidence must be dated within four weeks of submitting a Rebuilding Ireland Home Loan application.
Are there different maximum borrowing limits for Dublin and other areas?
Yes. Borrowing limits are higher in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, to reflect the more expensive property markets in those areas.
How much can I borrow?
The maximum loan amount under the Rebuilding Ireland Home Loan is limited to 90% of the market value of the property or, in the case of self-build properties, 90% of the total build costs.
For properties in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, the maximum loan amount is €288,000.
For the rest of the country, the maximum loan amount is €225,000.
The maximum loan amount is also limited by a Net Income Ratio.
What type of property can I purchase?
The Rebuilding Ireland Home Loan is only available for financing a Principal Private Residence (PPR) for the following purposes:
- To purchase a new, second-hand or self-build property.
- Where the gross internal floor area of the property does not exceed 175 square metres.
- The property complies with planning and building regulations.
- The property is located in the Republic of Ireland.
What is a fixed rate mortgage?
A fixed rate mortgage is a loan where the interest rate stays the same throughout the agreed period. With a fixed rate Rebuilding Ireland Home Loan this means that your mortgage repayments are the same every month for the life of the mortgage. This should making budgeting easier - but during the fixed rate period, you may be liable for a breakage fee if you switch to a variable rate or pay off all or part of your mortgage early.
Can I repay a fixed rate mortgage early?
You can repay a fixed rate mortgage early but you may be liable for a breakage fee.
What are the likely costs of early repayment of a fixed rate mortgage?
During the period of a fixed rate mortgage, you may be liable for a breakage fee if you switch to a variable rate or pay off all or part of your mortgage early. A breakage fee will only apply if the local authority cost of funds rate, applicable on the date of breaking the mortgage agreement, is LESS than the original local authority cost of funds rate on drawdown of your loan.
In the example below, a borrower takes out a 25-year fixed mortgage at a rate of 2.00% on 1st February 2018. On 1st February 2033 (with 10 years remaining), the mortgage outstanding is €90,000 and the borrower opts to break out of the fixed rate. The breakage cost calculation is:
- Amount [A] = €90,000
- Original local authority cost of funds on 1 February 2018 [B] = 1.50%
- Interest rate for local authority cost of funds for remaining term of 10 years on 1 February 2033 [C] = 1.25%
- Remaining term in days [T] = 3,652 days
- Breakage Calculation = (A x (B-C)) x T divided by 365 = (€90,000 x (1.50% - 1.25%)) x 3,652/365 = €2,251.23
- In this case the borrower would be charged a breakage fee of €2,251.23
Can the Help-To-Buy scheme be used towards a deposit?
Yes, the Help-To-Buy (HTB) scheme can be used towards a deposit. The HTB Application Number and HTB Access Code must be provided as part of the loan application. Full details on the Help-To-Buy scheme are available from www.revenue.ie
How long is a Rebuilding Ireland Home Loan letter of offer valid for?
A letter of loan offer is valid for a period of 6 months from date of issue, subject to the terms and conditions contained therein. However, the interest rate is determined by the date of draw down of the loan and this may change within the 6-month valid period.