New affordable housing measures will help build a sustainable future for the people of Carlow -DEERING

22nd January, 2018

Local Fine Gael TD., Pat Deering, has said the Rebuilding Ireland Home Loan, Affordable Purchase Scheme and Affordable Rental Scheme will support people and families in our communities who are not eligible for social housing, but who also cannot afford to rent or buy their own home.
Deputy Deering said: “I am delighted to welcome my Fine Gael colleague, Housing Minister Eoghan Murphy’s announcement, guaranteeing that homes will be affordable for the buyer and renter.
“We are doing this in three ways- through the Rebuilding Ireland Home Loan, the Affordable Purchase Scheme and the Affordable Rental Scheme.
“The Rebuilding Ireland Home Loan is a new Government-backed mortgage for first-time buyers. It will be available from our local authority here in Carlow from Thursday, 1 February 2018.
“The loan can be used both for new and second-hand properties, or to build your own home. In line with Central Bank rules, a person or couple can borrow up to 90% of the market value of the property. Under the loan, they can choose a fixed rate of 2%-2.25% interest for 25 – 30 years, so they will have absolute certainty of their repayments over the lifetime of the loan.
“To avail of the Rebuilding Ireland Home Loan, your annual gross income cannot exceed €50,000 as a single applicant, or €75,000 for joint applicants. There’s also a cap on the value of the home you can buy. €250,000 is the cap in Carlow.
“For example, a couple earning €75,000 and living in Carlow could afford to buy a house worth €250,000 provided they have €25,000 deposit between them.
“They could then borrow up to €225,000 from our local authority. Borrowers will pay a fixed interest rate of 2% to 2.25% for 25 to 30 years.
“A Home Loan Calculator is available on so you can get an idea of how much you could borrow and what the repayment rates might be. This website is now live.”
Deputy Deering continued: “The new Affordable Purchase Scheme is a national scheme that will see affordable homes built initially on State land, in co-operation with local authorities.
“This will enable people to get a home of their own, supported by and in partnership with the State.  With local authorities providing the land at reduced or no cost to facilitate affordable homes, the price of the affordable house will be discounted and the State will retain an equity share in the house, relative to the discount from the full price.
“So for example, a house that costs €250,000 may be made available to purchase at €200,000.  The equity share can be paid off, interest free, by the purchaser at a later date.  Or if the owner wants to sell early, the State can take that portion back at the time of sale.
DeputyDeering added: “For renters, we recognise that we can do more, and so a further way of addressing affordability of homes is through an Affordable Rental Scheme.
“This will be done using a cost rental model. Cost rental means that the rent paid covers the cost of building the property, together with ongoing management and maintenance charges, but with a minimal profit margin included.
“This provides greater certainty around the rent, regardless of what is happening in the market.
“Fine Gael in Government is committed to strengthening communities and building a sustainable future. We are committed to supporting families and giving them a helping hand.
“Each of these innovations will facilitate the construction of thousands of new homes across the country at more affordable prices.”