Other Information

Maximum loan amount is €185,000.

The form of application for a tax clearance certificate can be obtained from the County Council Housing Office when the loan application form is being submitted. In the case of new dwellings being purchased from builders or erected by a builder for the applicant under a building contract, loans will be approved only where both the Builder and the Dwelling are registered under the National House Building Guarantee Scheme (Homebond). (This Scheme is administered by the National House Building Guarantee Company Ltd. whose registered office is at Federation House, Canal Road, Dublin 6). Every application for an advance shall be considered entirely on its own merits and the Housing Authority reserve the right of refusing any application without assigning a reason thereon.

Every loan made by the Housing Authority shall be governed by this Scheme, and the provisions of the Housing Act, 1966, and the regulations made thereunder. It must be clearly understood that this Scheme shall be read in conjunction with the relevant Mortgage Deed entered into by the Housing Authority with the borrower.

Any inspections by or on behalf of the Council of the dwelling house being offered as security for the required is only a cursory visual inspection. No responsibility or liability whatsoever is accepted by the Council, or is to be implied as to the value or condition of the property by reason of such inspection, or any consequent report thereon.

Applicants are advised for their own protection to instruct their own Surveyor/Architect to inspect the property.

Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.

All House Purchase Loans approved include loan protection so that eligible borrowers' loans are repaid in the event of death or permanent total disablement. In the event of temporary total disablement, loan repayments after three months disability are maintained (subject to certain provisions and limitations). Please note that this plan is only available to new borrowers under age 55 who are in good health and in gainful employment at the date of approval of the loan. In a case where there are two joint borrowers the plan is available to both parties. The cover is provided by means of an insurance policy. The cost is met by a small addition to the rate of interest charged to eligible borrowers. The cost of the policy to the borrower may vary in light of claims experience. Cover is subject to the terms and conditions of the policy. Further details are available on request.

An advance in respect of the erection a house may be made in instalments. Not more than three instalments will be paid in respect of any one house, before its completion, and the total sum to be advanced by way of instalments at any time shall not exceed ninety per cent of the value of the work at that time. Instalments will be made in the following manner, 25% at wall plate level, 50% when internal plastering has been completed, the balance when the house is completed.

FAQ's

Can I choose any house I like?

Yes. When you have been approved in principle for a local authority house purchase loan, you may select a new or existing house or build a house. The house must be suitable to your needs, meet certain minimum standards and be acceptable to the local authority.

What size of loan can I get?

The loan can be up to 95% of the price of the house subject to a maximum of €185,000 and also subject to repayments not amounting to more than 35% of the household net income (i.e. income after tax and PRSI).

How much will my repayments be?

The interest rate on local authority house purchase loans is variable (i.e. it moves up and down) in line with movements in the building society variable mortgage rates. The current interest rate is 5%. In addition, a charge (.0.598% currently) is made to meet the cost of mortgage protection insurance to protect the interests of the surviving family by paying off the loan in the event of the death of the borrower or either borrower in the case of joint application.

What happens if I am not eligible for Mortgage protection?

Applicants not eligible for Mortgage Protection Insurance will only be considered in very exceptional circumstances and must be able to obtain private Mortgage Protection cover or some other form of security acceptable to the Council.

What happens if the council do not have the required certification of the Copy Land Registry Map?

Where the required certification of the Copy Land Registry Map cannot be carried out by the Council, it will be necessary for the Mortgagee to obtain and submit to the Council at their own expense, a Declaration of Identity certified by a competent Engineer or Architect.

Are there any time limits on the completion of the house?

If an instalment of the advance is paid before the house is completed and the house has not been entirely completed and made fit for habitation within six months of the date of such payment of the instalment, the amount advanced with interest shall be repaid forthwith on written demand of the Housing Authority without prejudice to all and every preceding condition and to the powers vested in the mortgage.

Are there any time limits on the purchase of the house?

A loan shall, in the case of a house duly completed within the prescribed time, be repayable by monthly instalments comprising principal and interest combined. Interest for the full period from the date of any advance on account of the loan to date on which the first payment falls due shall be paid monthly from the date of issue of such advance. The first instalment of principal and interest on a loan in respect of a house duly completed shall be repayable on the first of the month following the date of issue of the final instalment of the loan. Repayment on the amount advanced shall be by way of annuity in 360 monthly instalments of principal and interest combined payable on the first of each month.

What is the rate of Interest?

The rate of interest to be charged will be approximately 0.75 of one per cent per annum in excess of the rate of interest at which the money for the making of the loan is borrowed by the housing authority but the interest payable on a loan shall vary from time to time in accordance with the rates prevailing.

Can I repay the mortgage at any time?

The borrower may after one month's notice, in writing, and on paying all sums due on account of interest, repay to the housing authority the whole of the outstanding principal of a loan, or any part thereon being €63 or a multiple of €63.

What other charges may I encounter?

The following charges will be payable by the borrower; the cost of investigation of title, preparation of mortgage, registration of mortgage and all necessary outlay.

Can I transfer my interest in the house?

The borrower shall be at a liberty at any time, with the consent of the Housing Authority, to transfer his interest in the house. A fee of €12.70 or that which may be decided by the Housing Authority, non-refundable under any circumstances shall be payable in respect of each transfer. The borrower shall also be liable for all legal costs and outlay including any legal costs incurred by the Housing Authority, in connection with the transfer. Any such transfer shall be made subject to the conditions set out in paragraph 13 above.

Note: The borrower shall be personally liable for the repayment of any sum due in respect of a loan until he shall have transferred with he consent of the Housing Authority, his interest in the house in respect of which the loan was made.