The amount you can borrow under the Local Authority Purchase and Renovation Loan will depend on the level of renovation works required and the estimated end of works value of your home. The end of works value cannot exceed the maximum market property values set out for the Local Authority Home Loan. 

The maximum borrowing amounts are:

The deposit you need will depend on the level of renovation works required.

Where the amount you can borrow leaves a shortfall in the amount required, you will have to make up the shortfall in order to be approved for this loan. Proof of personal funds will be required.

Your deposit contribution must be made up of:

• personal savings of at least 3% of the value of the deposit
• funds of up to 7% of the value of the deposit, from an unborrowed source.

Personal savings must be accumulated over a period of at least 12 months before you make your application. You must provide certified or original bank or similar statements (post office, credit union, etc.) clearly showing a credible and consistent record of savings.

The balance of funds may be from a gift or other unborrowed source (i.e., not another loan).

The Local Authority Purchase and Renovation Loan is made up of two loans, a bridging loan that is equal to the amount of the Vacant Property Refurbishment Grant  (VPRG) that you have been approved for and an annuity loan which provides the remaining funding required (apart from the own funding you are required to have).  

The maximum loan to value is based on the amount of annuity loan compared to the end-of-works value of the property. The amount of annuity loan that you can borrow is dependent on the type of renovation work required and the end of works value of your home.

In addition to this you will be able to borrow an amount equal to the Vacant Property Refurbishment Grant (VPRG) amount you are approved for, subject to total loan amount remaining below the maximum LAPR amount allowed.

As the Local Authority Purchase and Renovation Loan is made up of two separate loans the maximum terms are different.

The maximum term over which you can borrow is 30 years for the fixed term annuity loan

The term may be shorter depending on your age. The number of years between the date of loan drawdown and the oldest applicant reaching the age of 70 determines the length of time over which you can borrow.

This means that a single applicant aged 35 years can have maximum term of 30 years, but a single applicant aged 45 years is limited to a maximum term of 25 years.

In the case of a joint application, one applicant aged 35 years and the other aged 45 years, the couple is limited to a maximum term of 25 years.

For the variable rate loan, the maximum term is 2 years. 

However, you are required to use the Vacant Property Refurbishment Grant to repay the bridging loan, so normally the term should be shorter than 2 years.

The Local Authority Purchase and Renovation Loan will be split into two parts, a fixed rate mortgage and a variable rate bridging loan, both of which will have different interest rates and repayment terms. The variable rate bridging loan is an interest only loan and will be equal to the Vacant Property Refurbishment Grant amount that you have been approved for. This variable rate bridging loan must be repaid once the Vacant Property Refurbishment Grant is paid out.

For the fixed rate annuity loan the Local Authority Purchase and Renovation Loan offers two fixed interest rate products:

4.00% fixed for up to 25 years (APR 4.07%)*

4.05% fixed for loans over 25 years and up to 30 years (APR 4.13%)*

* Rates are subject to change. Mortgage rates are set on the date of drawdown of your loan.

With 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 pay off all or part of your mortgage early.

All fixed 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.

Variable rate loans are loans for which the interest rate can rise or fall. For the bridging loan element of the Local Authority Purchase and Renovation Loan  you will only be required to make repayments that cover the interest on the loan, you will not be making any payments off the loan itself each month.

The variable interest rate is 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 interest payments.

The full amount of the loan will be repaid by you when you receive the  Vacant Property Refurbishment Grant (VPRG). However you can pay off earlier if you wish for no charge.

For the variable rate bridging loan the LAPR offers this at:

3.5% interest only variable rate for 2 years (APR 3.56%).

A fixed interest rate loan is a loan where the interest rate stays the same throughout an agreed period.  The annuity mortgage element of the the Local Authority Purchase and Renovation Loan interest rate is fixed for the full term of the mortgage. This means that your loan repayments are the same every month for the lifetime of the mortgage.

You can repay your fixed rate loan early, in full or in part. An early repayment charge may be applied.

Mortage Protection Insurance (MPI) is a requirement of borrowing.  The Local Authority MPI scheme is a group scheme.  It is obligatory for all borrowers who meet the eligibility criteria to join the scheme.  MPI is payable on both the annuity loan and the interest only bridging loan of the Local authority Purchase and Renovation loan.

Mortgage Protection Insurance (MPI) is a requirement of borrowing. The Local Authority MPI scheme is a group scheme. It is obligatory for all borrowers who meet the eligibility criteria to join the scheme.

The benefits include:

• an additional payment of €3,000 in the event of a member’s death, separate to life cover; and
• members are also covered for death up to age 75.

Full terms and conditions of the scheme are available from your local authority.

The Central Credit Register is a secure system for collecting personal and credit information on loans of €500 or more. The Central Credit Register is owned and operated by the Central Bank of Ireland.

The Central Credit Register is a national database that, on request, provides:

• an individual credit report detailing an applicant's credit agreements;
• a lender with comprehensive information to help with credit assessments; and
• the Central Bank with better insights into national trends in the provision of credit.

All applicants to the Local Authority Purchase and Renovation Loan must consent to the carrying out of credit check and reporting of the loan application to Central Credit Register.  Consent is given as part of the completion of the Local Authority Purchase and Renovation Loan application form.

If you have already obtained an approval in principle under the Local Authority Home Loan, and confirm this in your application form, and your personal eligibility and creditworthiness has already been confirmed under that scheme and you will not have to be reassessed under the Local Authority Purchase and Renovation Loan.  However, the Local Authority Home Loan approval in principle must have been issued within the last six months. If it is older than this, or if your financial situation has changed, you will have to undergo another financial and eligibility assessment under the Local Authority Purchase and Renovation Loan.

The Fresh Start principle allows people who have previously purchased or built a dwelling/dwellings  to be eligible to apply for a Local Authority Purchase and Renovation Loan.

You are eligible to apply for a Local Authority Purchase and Renovation Loan under the Fresh Start principle if you:

• Previously purchased or self-built a residential dwelling/dwellings, and
• Are divorced/separated or otherwise no longer in a relationship with your co-owning partner, and
• Have left the family home and divested yourself of your interest in the property

or

• Previously purchased or self-built a residential dwelling/dwellings, and
• Have been divested of this through insolvency or bankruptcy proceedings

The Fresh Start principle does not allow a Local Authority Purchase and Renovation Loan to be used to buy out a former partner’s share of a family home.

Note: If you are eligible under Fresh Start and you previously owned more than one dwelling you can still apply once you meet all the other eligibility criteria.

A list of the documentation that you need for Fresh Start principle is available in the Information Centre under  Fresh Start Principle | Local Authority Home Loan

The Fresh Start principle does not allow a Local Authority Purchase and Renovation Loan to be used to buy out a former partner’s share of a family home.

Yes, you will still be deemed eligible for the Local Authority Purchase and Renovation Loan as a Fresh Start applicant where you owned more than one dwelling.  You must have divested yourself of these dwellings and otherwise meet all the other Fresh Start criteria.

In such cases the most recently owned home must have been lost due to the ‘Fresh Start’ event i.e. experienced divorce/separation or insolvency/bankruptcy.

A Local Property Tax (LPT) check compares your PPSN against a database of people registered with Revenue for Local Property Tax.

Your consent to allow your local authority to conduct an LPT check is required as part of your application for the Local Authority Purchase and Renovation Loan.  An LPT check is carried out by your local authority to confirm your eligibility as a first-time buyer. The check is made via the Revenue's online LPT system.

In such a case where you are registered for the Local Property Tax but do not own, or have no interest in the registered property, your local authority will require further documentation as proof of this.

Yes, to be eligible for the Local Authority Purchase and Renovation Loan, you will also need to apply and be approved for the Vacant Property Refurbishment Grant. Proof of approval will be required.

No, the Help-to-Buy scheme is only open to applicants purchasing or building new build properties only.

For more information about the Local Authority Home Loan  please complete the contact form and your enquiry will be answered.

An applicant shall only be eligible for a Local Authority Purchase and Renovation Loan if—the combined gross income of all of the persons making the application does not exceed the following amounts:

 (i) one applicant, €80,000, or

(ii) more than one applicant, €85,000,

during the year before the date of the application;

No. You must be a first-time buyer to apply for a Local Authority Purchase and Renovation Loan unless you are availing of the Fresh Start Principle.

However, you are  permitted to have purchased the property which is the subject of the Local Authority Purchase and Renovation Loan application and still be eligible for the Local Authority Purchase and Renovation Loan, in which case you  would be applying for a renovation-only Local Authority Purchase and Renovation Loan. This must be the first home that you have purchased and you must have no outstanding mortgage on the property (as the Local Authority Purchase and Renovation Loan must have the first charge).

If you are married, in a civil partnership or in an intimate and committed relationship with a partner with whom you intend to reside within the property that you wish to purchase, you must apply for a Local Authority Purchase and Renovation Loan together with your spouse, civil partner or partner, either as a joint income applicant or a one earner joint applicant.

Yes, you are eligible to apply if you currently have a right to reside in the State

Yes. You are eligible to apply for the Local Authority Purchase and Renovation Loan if you inherited a property

No. To be eligible for the bridging loan for a renovation only, you must own your property and cannot have a mortgage on this property.

You must have received insufficient mortgage offers from two regulated mortgage providers to be eligible to apply for the Local Authority Purchase and Renovation Loan.  Evidence must be dated within twelve months of your application, and the amount you have been offered must be equal to or less than the Local Authority Purchase and Renovation Loan amount sought.

Examples of acceptable evidence are:

• A letter from a regulated mortgage provider showing the amount you requested and were offered, and/or
• A letter from a regulated mortgage provider stating that your application is outside their lending criteria, and/or
• A letter from a regulated mortgage provider stating that your application is has been refused for project specific reasons, and/or
• An on-line calculator output sheet from a regulated mortgage provider website, showing that you have insufficient borrowing capacity for the amount sought under your Local Authority Purchase and Renovation Loan application.
• A letter from a mortgage broker firm confirming that you have been unable to secure sufficient mortgage finance from two regulated mortgage providers, with supporting screenshots or print outs of the attempts made.

A regulated mortgage provider is a company that is regulated and permitted by the Central Bank of Ireland to provide monies to borrowers who wish to purchase a property, such as banks, building societies and credit unions.

You must complete the salary certificate on the Local Authority Purchase and Renovation Loan application form, which must be signed and stamped by your employer.

Where self-employed, you must provide a minimum of 2 years certified accounts (which should not be more than 18 months old), together with Notices of Assessment from Revenue for those years and an Accountant's or Auditor's Report (a qualified report is not acceptable) from a suitably qualified practitioner (such as ACCA/FCA/CPA/IPA) confirming that all taxes, personal and business, are up to date and in order and that there are no arrangements in place with Revenue in respect of outstanding tax liabilities.

Continuous employment does not need to be permanent, but continuous in nature. This means you may be in the same employment or in more than one employment for that period, where a break in employment has lasted no more than 4 weeks.

Multiple casual employments will not be considered eligible.

To be eligible for a Local Authority Purchase and Renovation Loan, you must be:

• in continuous employment for a minimum of two years, as a single applicant
• in continuous employment for a minimum of two years, as the sole earner in a joint application
• in continuous employment for a minimum of two years, as the primary earner in a joint application and be in continuous employment for a minimum of one year, as a secondary earner in a joint application.

Employment can be PAYE and/or self-employment.

Yes.  Further evidence of contract employment may be sought by the Local Authority to support an application for the Local Authority Purchase and Renovation Loan

Yes, you can apply for a Local Authority Purchase and Renovation Loan while you are on probation.  However, additional documentation may be requested from you as part of your application. It may be necessary for your probation period to have been completed before a final decision can be made and issued.

Your commission, overtime or a bonus will be included as part of your income for eligibility. However, the source and long-term nature of these incomes need to be considered in determining your borrowing and loan repayment capacity.

All additional income must be evidenced in the Local Authority Purchase and Renovation Loan Salary Certificate, payslips and bank account lodgements and verifiable as guaranteed and/or regular.

Certain long-term State Benefit payments may be considered, but only where the main income source is of an earned nature (i.e., more than 50% of the income that forms the full Local Authority Purchase and Renovation Loan application is from a source other than State Benefit payments).

Long-term State Benefit payments considered are:

• State Pension (Contributory);
• State Pension (Non-Contributory);
• Widow’s/Widower’s Pension;
• Blind Pension;
• Invalidity Pension;

100% of the above long-term State Benefit payments will be used. However, the long-term nature of the payment must be confirmed by the Department of Social Protection or other relevant Government Department.

Only income originating in the Republic of Ireland or Northern Ireland by applicants with rights of residency and rights to seek employment in the Republic of Ireland will be reckonable for eligibility. If you are unsure about this, please contact your local authority for confirmation.

For eligibility, your income is calculated:

• As reported in your PAYE/USC Statement of Liability (formerly P21) for the previous tax year, and/or
• As reported in your most recent Notice of Assessment from Revenue (which should not be more than 18months old).

Only income originating in the Republic of Ireland or Northern Ireland by applicants with rights of residency and rights to seek employment in the Republic of Ireland will be reckonable for borrowing and repayment capacities.

For borrowing, your income is calculated:

As your basic earned income as evidenced in the Local Authority Purchase and Renovation Loan Salary Certificate, payslips and bank account lodgements, and/or

An average of the most recent two-year income as reported in the accounts (which should not be more than 18 months old).

The value of the property after the renovation works are completed cannot exceed the geographic price caps set out below. An estimate of the end-of-works value must be supplied with the loan application. 

• €415,000 in Dublin, Kildare or Wicklow, or
•  €375,000 in Cork, Galway City or Meath, or
•  €345,000 in Clare, Galway (County), Kilkenny, Limerick, Louth, Waterford, Westmeath or Wexford, or
•  €310,000 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo or Tipperary.

The Local Authority Purchase and Renovation Loan application form is available to download here. You may also request a printed copy from your local authority.

A Local Authority Purchase and Renovation Loan application is considered valid when:

• the application form is completed in full, with all signatures and consents given and
• all relevant documentation, as detailed in the "Checklist for Applicants", is provided.

Failure to submit a valid application will result in your application being returned to you, which may cause delays.

A "Checklist for Applicants" is contained within the application form which details all the documentation needed. Your local authority may request further documentation where necessary.

List of documents needed:

1. A Completed Local Authority Purchase and Renovation Loan Application form.  If you  already have a Local Authority Home Loan approval in principle, this should also be provided.
2. Stage 1 Building Survey and Scope of Work
3. Stage 1 Cost Plan
4. Vacant Property Refurbishment Grant Approval or Approval in Principle (can be provided at later stage if not yet available)
5. Valuation of Property to be purchased and End of Works valuation (if applicable)
6. Proof of Building Professional’s Professional Indemnity Insurance
7. Stage 2 Scope of Works (if project passes Stage 1)
8. Stage 2 Cost Plan (if project passes Stage 1)

You send your completed application form to the local authority in which you intend to purchase.

In order to apply for a Local Authority Purchase and Renovation loan you must have identified a Vacant Property Refurbishment Grant eligible property. You must apply for the Local Authority Purchase and Renovation loan to the Local Authority where the property is located.

Yes, you will need to provide details of the property you intend to purchase and or renovate in order to apply for the Local Authority Purchase and Renovation Loan.

You will need to engage a Registered Construction Professional* to carry out the Stage 1 Building Survey and Scope of Works as well as the Stage 1 Cost Plan. You will also need a valuer to provide a valuation of the property after the renovation works are completed and valuation of the current value of the property if you are intending to buy it.

* A Registered Construction Professional has the same meaning as defined in the Regulation of Providers of Building Works and Miscellaneous Provisions Act 2022 – “registered construction professional” means a person whose name is entered in the register for quantity surveyors or register for building surveyors established under Part 3, 4 or 5 respectively of the Building Control Act 2007 or whose name is entered in the register kept by the Institution of Engineers of Ireland under  section 7 of The Institution of Civil Engineers of Ireland (Charter Amendment) Act 1969.

Yes. You are required to have a specified loan amount selected at the time of submitting your Local Authority Purchase and Renovation Loan application. You must complete the "Property Details" section of the application form.

The Home Loan Calculator will help you estimate the maximum amount you can borrow and afford to repay.

The final decision on your Local Authority Purchase and Renovation Loan application is made by your local authority.

Your local authority will send you a letter confirming its decision. The decision will be a "Decision to Decline" or an "Approval in Principle".

The decision on your application is made by your local authority in accordance with a national credit policy. The credit policy sets out terms and conditions of the Local Authority Purchase and Renovation Loan including eligibility criteria and supporting documentation required. Your application may be declined for one or more reasons. In addition to this your application will be reviewed to determine if your project is viable.

You must be able to satisfactorily demonstrate, with professional analysis, as appropriate, that you will be able to complete the renovations in full, and that on completion the property will  comply with the applicable building regulations.  The end value of the works /open market value once finished must still be  within the Local Authority Purchase and Renovation Loan house price and loan to value limits.

Yes. Your local authority has an Appeals Procedure in place. 

An Approval in Principle is valid for a period of six months from date of issue, subject to the terms and conditions contained therein. The interest rate referred to in an Approval in Principle is indicative and subject to change at any time before the drawdown of a Local Authority Purchase and Renovation Loan.

For information about your current application and its progress, the local authority which you applied to is available to answer any questions you may have. Contact details for your local authority are available  here.

It will be assessed in accordance with the credit policy underpinning the scheme.

The Local Authority Purchase and Renovation Loan is only available on homes that are eligible for the Vacant Property Refurbishment Grant (VPRG). Please see details of that scheme  here.

The Local Authority Purchase and Renovation Loan should only used for homes that require renovations. If you are seeking to purchase a home that is habitable (i.e. does not require renovations) you could consider the Local Authority Home Loan.

You cannot use the Local Authority Purchase and Renovation Loan to purchase a home only. The conditions of the Local Authority Purchase and Renovation Loan require the property to be brought up to compliance with building regulations, so the purchase of a derelict home without provision for renovations works to bring it up to the required standard is not covered by the Local Authority Purchase and Renovation Loan.

• The Vacant Property Refurbishment Grant is a payment you can get if you are turning a vacant house or building into your permanent home or a rental property.
• A grant of up to €50,000 is available.
• If the refurbishment costs for a derelict property exceed the standard grant of up to €50,000, a top-up grant amount of up to €20,000 is available. 

You can find out more about the Vacant Property Refurbishment Grantand how to apply here.

It is the responsibility of the applicant to assure themselves that the house that is the subject of the loan application is eligible for the Vacant Property Refurbishment Grant. Please see details of that scheme   here.

Yes. However, Vacant Property Refurbishment Grant Approval or Approval in Principle will need to be verified by the local authority before any loan can be drawn down. Therefore it is the responsibility of the applicant to assure themselves that the house that is the subject of the loan application is eligible for the Vacant Property Refurbishment Grant, or else they are undertaking the Local Authority Purchase and Renovation Loan application in vain.

In general, a person who owns the property can already apply for the Vacant Property Refurbishment Grant to their local authority.  For applicants who are seeking to buy a property, a Vacant Property Refurbishment Grant Approval in Principle can only be given when they can provide evidence that they are in active negotiations to buy a property. Therefore, Local Authority Purchase and Renovation Loan applicants who wish to use the Local Authority Purchase and Renovation Loan to buy the property may not yet be in a position to apply for the Vacant Property Refurbishment Grant.

It is advised that Local Authority Purchase and Renovation Loan applicants who are in a position to get Vacant Property Refurbishment Grant Approval in advance of their Local Authority Purchase and Renovation Loan application do so as this allows them to confirm that the house is Vacant Property Refurbishment Grant eligible. It also provides the Vacant Property Refurbishment Grant amount which can then be taken into account in their loan application.

Your Local Authority Purchase and Renovation Loan application will still be accepted if you do have Vacant Property Refurbishment Grant Approval or Approval in Principle before you apply for the Local Authority Purchase and Renovation Loan. You can estimate the Vacant Property Refurbishment Grant amount you think you will receive. However, you will need to have a Vacant Property Refurbishment Grant Approval or Approval in Principle, and the approved amount, before any funds are drawn down. If your Local Authority Purchase and Renovation Loan application passes an initial assessment, you will be in a position to apply for the Vacant Property Refurbishment Grant at that stage.

If the house turns out not to be eligible for the Vacant Property Refurbishment Grant, the Local Authority Purchase and Renovation Loan will be withdrawn. Furthermore, if the approved Vacant Property Refurbishment Grant amount is less than the amount indicated in the application form, your ability to repay the loan may need to be reassessed.

Yes, you can apply for the loan to cover the purchase price and additional renovation works as long as the loan remains within the scheme limits.

An applicant is permitted to have purchased the property which is the subject of the Local Authority Purchase and Renovation Loan (LAPR) application and still be eligible for the LAPR, in which case they would be applying for a renovation-only LAPR. This must be the first home that they have purchased and they must have no outstanding mortgage on the property. LAPR must have first charge on the property

Projects which have already commenced should not normally be considered. In particular, projects such as new extensions to existing dwellings already commenced are not eligible.

However, local authorities can use their discretion to consider whether, renovation only projects that have already commenced, may be eligible for the Local Authority Purchase and Renovation Loan .  For example, if you have already carried out improvements at your own expense, this may be considered to have made the project less risky from the local authority’s perspective.

In such cases, the project must satisfy all the conditions of the Local Authority Purchase and Renovation Loan , for example the projects must have the appropriate reports from professionals and the completed building must meet the requirements of the Building Regulations. In this regard, it is important that the previous works undertaken have not in some way compromised the project, for example by making it impossible for a building professional to give an opinion that the building is compliant with the Building Regulations.

In any case, funding cannot be provided for works already completed but only for works carried out following approval for the loan.

No, Local Authority Purchase and Renovation Loan (LAPR) is only available on homes that  are eligible for the Vacant Property Refurbishment Grant (VPRG).

You do not need to have Vacant Property Refurbishment Grant Approval or Approval in Principle before you apply for the Local Authority Purchase and Renovation Loan but you will need to have one of them before any funds are drawn down.

If you already own your home and do not have a mortgage on this property and it qualifies for the Vacant Property Refurbishment Grant you will be allowed to apply for funding to renovate the home, on the condition that the Local Authority Purchase and Renovation Loan has first charge on the home in question.

A ‘charge’ is a legal term used to describe the security that a lender has when it provides financing. The charge is made by the lender against an asset or assets that belong to the borrower.

When you take out a mortgage the lender places a charge on the property you’re buying. 

Charges are ranked by priority of repayment. A first charge is the highest priority that a lender can have.  

No, the Local Authority Purchase and Renovation Loan is only available on homes you intend to be your Principal Private Residence.