What is a Rebuilding Ireland Home Loan?

A Rebuilding Ireland Home Loan is a new Government backed mortgage for first time buyers. It is available nationwide from all local authorities from 1st February 2018.

As a first time buyer you can apply for a Rebuilding Ireland Home Loan to purchase a new or second-hand property, or to build your own home.

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.

Warning: If you do not keep up your repayments you may lose your home. Warning: The cost of your monthly repayments may increase. Warning: You may have to pay charges if you pay off a fixed-rate loan early. WARNING: If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

Am I eligible?

To be eligible for a Rebuilding Ireland 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
have an annual gross income of not more than €50,000 as a single applicant or not more than €75,000 combined as joint applicants
submit two years certified accounts if self-employed
provide evidence of insufficient offers of finance from two banks or building societies
not be a current or previous owner of residential property in or outside the Republic of Ireland
occupy the property as your normal place of residence
purchase or self-build a property situated in the Republic of Ireland of no more than of 175 square metres (gross internal floor area)
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 an Irish Credit Bureau check

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

What are my interest rate options?

A Rebuilding Ireland Home Loan offers three rate products:

2% fixed for up to 25 years (APR 2.02%)*
2.25% fixed for up to 30 years (APR 2.27%)*
2.30% variable (subject to fluctuation) for up to 30 years (APR 2.32%)*

* 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.

If you choose 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 switch to a variable rate or pay off all or part of your mortgage.

If you choose a variable interest rate product:

You have the flexibility to make lump sum repayments, increase your repayments or make early repayments - but your monthly repayments could rise or fall over the life of your mortgage.

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

How much can I borrow?

With a Rebuilding Ireland 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 below 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.

All indicative monthly repayment amounts are for the loan amount only and exclusive of Mortgage Protection Insurance (MPI) which is a requirement of borrowing. This calculator gives indicative results for illustrative and guidance purposes only and is not an offer of a loan.

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 Rebuilding Ireland 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 (8am to 5pm - Monday to Friday) or from your local authority. Once submitted, all queries in relation to your application and the decision should be directed to your local authority.

Find Your local Authority : http://rebuildingirelandhomeloan.ie/localauthorities/

Telephone : 051 349720

Source : Rebuilding Ireland Home Loan