The Minister for Housing, Local Government and Heritage, Darragh O'Brien has announced significant improvements to the Local Authority Home Loan. The move means that people across Cavan and Monaghan will become eligible to apply for the State-backed mortgage.
The prices of homes eligible for a Local Authority Home Loan and income limits of those eligible to apply for a loan are being increased from the 1st of March 2023. In Cavan and Monaghan, the house price limits for homes eligible under the scheme will increase by €25,000 from €250,000 to €275,000 while income limits for joint applicants will increase to €85,000 and the income limit for a single applicant in Cavan will increase to €70,000.
Meanwhile, the Local Authority Home Loan was launched in January 2022 as part of Housing for All and aims to support creditworthy borrowers who are unable to get finance from commercial banks to buy a home. “I am delighted to announce these improvements to the Local Authority Home Loan which will take effect from the 1st of March.
"Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people in Monaghan can access the loan.
"Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan. The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan.
"The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people in Monaghan who want to own their own home," added Minister O'Brien.