Home loan limit in Waterford to rise by €45,000

New house price limits of €345,000 for local authority loans in Waterford are set to come into force in the second quarter of this year.

The new limit will amount to an increase of €45,000 and Minister Cummins Minister of State for Planning & Local Government, John Cummins TD, welcomed the news saying it will 

create opportunities for local people to purchase new homes.

The Local Authority Home Loan is a Government-backed mortgage for first-time buyers and fresh start applicants.

 It can be used to purchase a new or second-hand property or for a self-build project and through the scheme local authorities can provide up to 90 per cent of the market value of the property.

“Following Cabinet approval yesterday, and an updated review of house prices and income limits in recent months, the house price limit is being raised by €45,000," said Minister Cummins. Highlighting that the increase will be first change implemented since March 2023, Minister Cummins said income limits for a single-earner will increase from €70,000 to €80,000 and will remain at €85,000 for couples. 

He said that was in recognition that some single income earners were being locked out of the scheme, despite meeting all other criteria.

A Local Authority Home Loan offers two fixed interest rate products: 3.35 per cent fixed for up to 25 years and 3.45 per cent for loans over 25 years and up to 30 years. Applicants must also have proof of two insufficient mortgage offers from two regulated finance providers.

“The Local Authority Home Loan provides opportunities for those who may not be able to secure finance from a lending institution," said Minister Cummins.

"It demonstrates that Local Government has an important role to play in providing practical routes into home ownership for first-time buyers and fresh start applicants,” he added, before going on to comment: “I would encourage anyone considering buying their first home that maybe having difficulties securing finance through the regular lending institutions to consider the opportunities available under the Local Authority Home Loan. It is important that the public understand the options that are open to them designed to help making owning a home attainable."

Applications can be made to Waterford City & County Council and more information can be found at www.localauthorityhomeloan.ie