New affordable house loans from next week

NEW affordable housing measures are to be introduced next week for first time buyers who have been refused finance.

The Rebuilding Ireland Home Loan will be commenced by local authorities, including Cork County Council, on Thursday next, February 1.

To qualify, your annual gross income cannot exceed €50,000 as a single applicant, or €75,000 for joint applicants.

There’s also a cap on the value of the home you can buy. In Cork, the maximum market value is €320,000.

The loan can be used both for new and second-hand properties, or to build your own home. In line with Central Bank rules, a person or couple can borrow up to 90% of the market value.

Under the loan, they can choose a fixed rate of 2%-2.25% interest for 25 - 30 years, so they will have absolute certainty of their repayments over the lifetime of the loan.

A Home Loan Calculator, which gives an indication of borrowing levels and repayment rates, is available at www.rebuildingirelandhomeloan. ie.

“In addition to the Rebuilding Ireland Home Loan, the Government is also introducing an Affordable Purchase Scheme and Affordable Rental Scheme,” said Deputy David Stanton (FG).

“These three schemes will support people and families in our communities who are not eligible for social housing, but who also cannot afford to rent or buy their own home.