Navigating Ireland’s housing market isn’t always a walk in the park, especially for first-time buyers or those who have had mortgage applications rejected by traditional banks. But there’s good news with the Local Authority Home Loan Scheme. This scheme might just be the lifeline you need. Backed by the government and designed with affordability in mind, this scheme opens the door to homeownership for many who thought it out of reach.
In this guide, we’ll break down how can apply, how the local authority home loan process works, and whether this could be the right route for you.
What is the local authority home loan scheme?
The local authority home loan scheme is a government-backed initiative aimed at helping eligible first-time buyers (and certain other applicants) purchase a home. It’s issued directly by Ireland’s local authorities and offers competitive fixed interest rates for the full term of the loan, up to 30 years.
The key appeal? This scheme is especially popular with those who have been turned down by traditional Irish banks but still have the means to make regular repayments. The local authority home loan supports first-time buyers as well as so-called “fresh start” applicants, such as individuals who have gone through insolvency or a relationship breakdown. It’s also a popular option among those exploring the first home government scheme.
For many, it’s a critical bridge to homeownership when the door to traditional lending seems firmly shut.
Who can apply for a local authority home loan?
To qualify for a local authority home loan applicants must meet specific eligibility criteria, including:
- Be a first-time buyer or someone who qualifies as a ‘fresh start’ applicant (for example, someone who has gone through insolvency or separation).
- Be aged between 18 and 70.
- Earn less than €70,000 (gross) for single applicants or €85,000 for joint applicants.
- Have mortgage refusals from at least two regulated lenders.
- Be purchasing a property within local price caps.
- Plan to live in the home as your primary residence.
How to apply for a local authority home loan
Here’s a quick breakdown of the process:
Get approval in principle
Before making any offers on a property, secure approval in principle from your local authority. This shows you’re a serious buyer and gives a clear idea of your borrowing power. For broader context on this step, see our guide on how much can I borrow mortgage.
Submit documentation
You’ll need to gather a substantial set of documents—proof of income, ID, tax clearance, and more. Check out our checklist: what documents do I need for mortgage approval.
Complete the application form
The local authority home loan application form is available online through your local authority’s website or at their offices. Fill it out thoroughly, and don’t be shy about asking for guidance if needed.
Meet with a local authority officer
As part of the process, you’ll typically meet with an officer who’ll review your application and discuss your income, housing needs and repayment capacity.
What properties are eligible under the scheme?
Not every property qualifies. Eligible properties under the local authority home loan scheme include:
- Newly built homes
- Second-hand homes
- Self-build properties
The home must fall under the property price limits set for your county and be suitable for your household size.
Local authority home improvement loans: Who can use them and for what?
While the local authority home loan focuses on house purchase, local authority home loans are also available for home improvements. These are a different breed of loan altogether. Local authority home improvement loans are designed for existing homeowners who need to upgrade or repair their properties rather than purchase. Eligible improvements include:
- Energy efficiency upgrades (like insulation, heat pumps, or solar panels)
- Essential repairs (such as roof or structural work)
You’ll need to demonstrate both the necessity and cost-effectiveness of the proposed improvements. These loans often appeal to those ineligible for grants but still eager to modernise their homes sustainably.
Benefits of choosing a local authority home loan
Why consider this route? The appeal of local authority lending goes beyond simple access to funding:
- Fixed interest rates for the full loan term, providing long-term financial stability
- Support for applicants turned down by banks
- Low deposit requirements in some cases
- The possibility to combine with other supports, like the government help to buy house scheme.
These features make the local authority home loan scheme and local authority home improvement loans attractive, stable options in a challenging market.
Things to consider before applying
While attractive, these loans aren’t without their caveats:
- Eligibility rules are strict, and documentation requirements can be extensive
- Loan amounts capped based on income and location
- Possible delays in approval due to volume or documentation issues. Do expect some delays.
Still, if you’re realistic about timelines and requirements, local authority loans could be a valuable tool in your journey toward owning or improving your home.
How MortgageLine can support your local authority home loan journey
A lot of hopeful homebuyers assume they won’t qualify for a traditional mortgage—and sometimes, they’re right. But often, they’re not. At MortgageLine, we help you explore every avenue.
Before committing to a local authority home loan, let’s check your eligibility for standard first time buyer mortgages. You might be pleasantly surprised.
We also provide insights into the local authority affordable purchase scheme and offer first time home buyer tips that can make your journey smoother.
Contact us today for a free mortgage review call.
FAQs
What is the interest rate for a local authority mortgage?
Local authority home loan rates are fixed for up to 30 years and currently range from around 3.35% to 3.50%, depending on the loan term. Check with your Local Authority for details.
How much deposit do you need for a local authority home loan?
Typically, a 10% deposit is required, but this can sometimes be supplemented with various schemes like the Help to Buy (Tax Rebate) Scheme.
Can I get a loan from my local council?
Yes, if you meet the criteria for the local authority loan scheme or home improvement loans.
