How do I apply for the new Government Backed First Time Buyer Mortgage Scheme
Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers. It is available nationwide from all local authorities from 1st February 2018.
As a first-time buyer you can apply for a Rebuilding Ireland Home Loan to purchase a new or second-hand property, or to build your own home. The loan is a normal Capital and Interest-bearing mortgage which is repaid by direct debit on a monthly basis.
You can borrow up to 90% of the market value of the property.
Maximum market values of the property that can be purchased or self-built are:
€320,000 in the counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow, and
€250,000 in the rest of the country.
Am I eligible?
To be eligible for a Rebuilding Ireland Home Loan you must
- be a first-time buyer
- be aged between 18 and 70 years
- be in continuous employment for a minimum of two years, as a primary applicant or be in continuous employment for a minimum of one year, as a secondary applicant
- have an 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 self-employed
- provide evidence of insufficient offers of finance from two banks or building societies
- not be a current or previous owner of residential property in or outside the Republic of Ireland
- occupy the property as your normal place of residence
- purchase or self-build a property situated in the Republic of Ireland of no more than of 175 square metres (gross internal floor area)
- purchase or self-build a property which does not exceed the maximum market value applicable for the county in which it is located
- consent to an Irish Credit Bureau check
Eligibility is subject to submission of a complete Rebuilding Ireland Home Loan application form and confirmation by your local authority.
What Rates are available?
2% fixed for up to 25 years (APR 2.02%)
2.25% fixed for up to 30 years (APR 2.27%)
2.30% variable (subject to fluctuation) for up to 30 years (APR 2.32%)
- All rates are exclusive of Mortgage Protection Insurance (MPI) which is a requirement of borrowing. Eligible borrowers are required to partake in the local authority collective MPI scheme. MPI is payable monthly, in addition to loan repayments.
- If you choose a fixed interest rate product:
Your monthly repayments remain the same for the full fixed rate loan period, 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.
- If you choose a variable interest rate product:
You have the flexibility to make lump sum repayments, increase your repayments or make early repayments – but your monthly repayments could rise or fall over the life of your mortgage.
As Financial Advisors we can give advice on which product is most suitable for you. Contact Us Today