Increases to income limits in Louth announced for Local Authority Home Loan

The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, today announced changes to the Local Authority Home Loan, that the Government says will result in more people in Louth being eligible to apply for the State-backed mortgage.

The prices of homes eligible for a Local Authority Home Loan and income limits of those eligible to apply for a loan are being increased. The following changes to the Local Authority Home Loan will come into effect on 01 March 2023:

• Increase from €310,00 to €330,000 in the house price limit for houses in Louth.
• Increase from €50,000 and €65,000 to €70,000 for all single applicants nationwide.
• Increase from €75,000 to €85,000 for all joint applicants nationwide.

The Local Authority Home Loan was launched in January 2022 as part of Housing for All. It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It can be used for new, second hand or self-build homes. It is aimed at those on more moderate incomes, in order to achieve homeownership, with help from the State.

A Local Authority Home Loan offers two fixed interest rate products:

• 3.35% fixed for up to 25 years (APR 3.40%)*
• 3.45% fixed for up to 30 years (APR 3.51%)*

More information on the Local Authority Home Loan can be found at https://localauthorityhomeloan.ie/
The maximum amounts that can be borrowed will be as follows:

• In areas with a house price limit of €275,000, the borrowing limit will be €247,500
• In areas with a house price limit of €300,000, the borrowing limit will be €270,000
• In areas with a house price limit of €330,000, the borrowing limit will be €297,000
• In areas with a house price limit of €360,000, the borrowing limit will be €324,000.

Speaking after the announcement, Minister O’Brien said: “I am delighted to announce these improvements to the Local Authority Home Loan which will take effect from March 1st. Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people can access the loan.

"Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan. The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan.

"The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people who want to own their own home.”