New Local Authority Home Loan

Apply for a Local Authority Home Loan

Local Authority Home Loan

A Local Authority Home Loan is a Government backed mortgage for first time buyers or other eligible applicants through local authorities. The scheme is for the purchase of new or second-hand residential properties and for self-builds. It also includes the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.

The "Fresh Start" principle means that people who are divorced or separated and have no interest in the family home, or who have undergone personal insolvency or bankruptcy arrangement or proceedings or other legal process, will be eligible to apply.

The Local Authority Home Loan is available nationwide from all local authorities from 4th January 2022.

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 of 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 Local Authority 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 the primary earner or be in continuous employment for a minimum of one year, as a secondary earner (see Temporary Amendments in Light of Economic Impacts of COVID-19 under What is continuous employment? on our FAQ page here)
as a single applicant have an annual gross income of not more than €65,000 (gross) in counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and be earning under €50,000 (gross) in all other counties
as joint applicants have an annual gross income of not more than €75,000(gross)in all counties
submit two years certified accounts if self-employed
provide proof of insufficient mortgage offers of finance from two regulated financial providers
not be a current or previous owner of residential property in or outside the Republic of Ireland, unless you are a "Fresh Start" applicant
applicants are required to declare that they are first time buyers. They must authorise the Local Authority to conduct such checks as are necessary to confirm this, such as conducting Local Property Tax check.
occupy the property as your normal place of residence
purchase or self-build a property situated in the Republic of Ireland
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 a Central Credit Register check
currently have a legal right to reside and work in the State and be able to demonstrate that they are habitually resident in Ireland

Eligibility is subject to submission of a complete Local Authority Home Loan application form and confirmation by your local authority.

What are my interest rate options?

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

2.495% fixed for up to 25 years (APR 2.52%)*
2.745% fixed for up to 30 years (APR 2.78%)*

* Rates are subject to change. Mortgage rates are set on the date of drawdown of your loan.

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.

With 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 pay off all or part of your mortgage early.

You should seek independent financial advice on which product is most suitable for you.

How much can I borrow?

With a Local Authority Home Loan you can borrow up to 90% of the market value of a residential 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.

This limits the amount that can be borrowed to no more than €288,000 in the counties Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow and no more than €225,000 in the rest of the country.

Use the home loan calculator here to get an indication of how much you can borrow over the maximum term allowable and what the estimated repayments would be. A shorter term will reduce the amount you can borrow.

For information on interest rates and how much you can borrow please visit localauthorityhomeloan.ie.

How do I apply?

If you think you are eligible and can afford the repayments on the amount you need to borrow, you can complete a Local Authority Home Loan application form here.

You must complete all sections of the application form and provide the supporting documents described in the applicant checklist.

Your application form must be signed by all applicants and submitted to your local authority. Applicants are strongly advised to submit their applications in person, as posted applications are often not completed correctly and have to be returned.

Your application will be assessed and you will be advised of the decision in writing. Lending criteria, terms and conditions apply. Security and Insurance required. Further information on how to apply is available from our help desk at 051 349720 (8 am to 5 pm - Monday to Friday) or from Kilkenny County Council, Loans Section - (056) 7794935. Once submitted, all queries in relation to your application and the decision should be directed to your local authority.

Download the latest documents

Local Authority Home Loan Information Booklet.pdf (size 320.2 KB)

Local Authority Home Loan Application Form.pdf (size 605.5 KB)