Grants And Incentives to Buy Your Home

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The PPN recently covered grants and incentives for people living in their homes to make energy saving , environmental and domestic living improvements. However, what happens if you haven’t yet made it onto the first rung of the housing ladder? What help is there for first time buyers and potential home owners in Leitrim? There are currently two schemes available to Leitrim home buyers the Rebuilding Ireland Home Loan Scheme and the Mortgage Allowance Scheme.

Rebuilding Ireland Home Loan Scheme

This government-backed scheme is administered by local authorities and is unique in the opportunity it affords to first-time buyers seeking to take out a mortgage. It replaces the previous Home Choice Loan and local authority mortgages.

Borrowers can avail of reduced interest rates, higher loan amounts (i.e. greater than the standard 3.5 times yearly salary) and may use the Help to Buy Incentive towards the cost of their deposit, if they also qualify for that scheme.

The maximum market value of each property is capped at €320,000 in Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow; and at €250,000 in the rest of the country.

Three types of mortgages are available under this scheme:

  1. 2% fixed-rate interest, up to 25 years
  2. 2.25% fixed-rate interest, up to 30 years
  3. 2.3% variable-rate interest, up to 30 years

Do I Qualify?

In order to qualify for this scheme, you must:

  1. Be buying or building a property that is less than 175m² in size.
  2. Be a first-time buyer, aged between 18-70, with an income of less than €50,000 (if single applicant) or less than €75,000 (if joint application).
  3. Have a deposit of at least 10% of the property value.
  4. Be in continuous, permanent employment, and have been so employed for the preceding two years, at minimum.
  5. Intend to occupy the residence as your primary home.
  6. Be able to provide evidence that you were unable to secure sufficient offers of finance from two lenders.
  7. You must intend to occupy the residence as your primary home.

More information on eligibility, application and interest rates can be found on the Rebuilding Ireland website HERE.

Mortgage Allowance Scheme

This scheme aids social housing tenants or tenant purchasers who are looking to buy their own home, by paying an allowance towards their private mortgage of up to €11,450 over a five-year period.

This amount is paid directly to the lending organisation, starting at €3,560 in Year 1 and reducing each year to €1,270 in Year 5.

The scheme also applies to those living in housing associations for more than one year, who wish to rescind their tenancy in favour of purchasing or building their own home.

Do I Qualify?

In order to qualify for this scheme, you must:

Be borrowing a minimum of €38,092.14 on your mortgage.

Ensure that the amount received through the scheme in any year does not exceed the year’s mortgage payments.

NB: You are not eligible for this scheme if you are buying a home under the Shared Ownership Scheme.

How do I Apply?

You can obtain an application form and explanatory notes about the Mortgage Allowance Scheme from the Leitrim County Council website HERE.

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