Good Financial Standing

Applicant(s) must:

• have a credible savings record of a minimum of 12 months duration immediately prior to making an application.
• provide evidence that their savings have accumulated over a period of at least 12 months.
• provide bank or similar statements (post office, credit union, etc.) for a 12-month period immediately prior to making an application clearly showing a credible and consistent track record of savings.

Deposit amount

• The minimum deposit you need will depend on the level of renovation works required,

Vacant (Minor works)- 10% of the Purchase Price + 10% of the Renovation Cost

Vacant (Major works)- 10% of the Purchase Price + 10% of the Renovation Cost

Derelict                        - 20% of the Purchase Price + 10% of the Renovation Cost

• The minimum deposit can be made up of both personal savings and gifts/other unborrowed sources.
• The personal savings must be no less than 3% of the total value of the purchase price and the renovation cost and must be evidenced at the time of making a Local Authority Purchase and Renovation Loan application.
• A gift or money from other unborrowed sources can make up the balance of the deposit.
• All of the applicant(s) financial contribution (from unborrowed sources) will be in place and evidenced in the applicant(s) bank account prior to loan drawdown. Their source must be verified and provided as part of the Local Authority Purchase and Renovation Loan application.
• Unexplained lump sum lodgements made to any account within the 12 month period prior to making a Local Authority Purchase and Renovation Loan application must be explained and supported by documentary evidence if they are to be considered when computing the cash savings contribution to the deposit.
• For clarity, even if gifts or money from other unborrowed sources make up more than the the minimum deposit  , documented cash savings of at least 3% of the total value of the purchase price and renovation cost are still required.

Please note: The applicant(s) must provide bank or similar statements (post office, credit union, etc.) clearly showing a credible and consistent track record of savings. For clarity, it is not necessary that the minimum deposit is solely gathered within the preceding 12 month period. However, a track record of savings in the 12 month period prior to application must be consistent and would be expected to show regular savings and the deposit being maintained and/or increased in this period. If this is not the case, further financial information will be required.

Maximum Loan amount and term

• The maximum loan amount is specified in the Housing Purchase and Renovation Loans Regulations 2024 (SI No. 353 of 2024) or any Regulations or enactment amending or replacing those Regulations.
• The maximum mortgage loan (including the bridging loan) cannot exceed;

      €324,000 in Dublin, Kildare or Wicklow, or,

     €297,000 in Cork, Galway, Louth or Meath, or

    €270,000 in Clare, Kilkenny, Limerick, Waterford, Westmeath or Wexford, or

    €247,500 in Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly,         Roscommon, Sligo and Tipperary

• The maximum loan term is 30 years up to the age of 70 of the oldest borrower and must be repaid by an annuity of principal and interest combined. All payments shall be made at monthly intervals by direct debit. 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.

Interest Rate

A Local Authority Purchase and Renovation Loan has two interest rates, a fixed rate mortgage and a variable rate bridging loan. 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.

• 4.00 % for loans with a term up to 25 years (APR 4.07%)
•  4.05% fixed for loans over 25 years and up to 30 years (APR 4.13%)

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 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. Interest rates are subject to change at any time before the drawdown of a Local Authority Purchase and Renovation Loan. The interest rate is determined by the applicable rate on the date of drawdown and is fixed for the full term.

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 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.

Borrowing Record

Where the applicant(s) have a previous or existing borrowing record, this will be considered as part of the application for the Local Authority Purchase and Renovation Loan.

• Applicant(s) must provide evidence of all existing borrowings with 12-month up-to-date statements.