Buying a Home on the Open Market

• Homes are usually bought on the open market and financed through a mortgage from a lender such as a bank or building society. Buyers will normally need to pay at least 10% of the purchase price as a deposit to secure a mortgage.
• If you want to buy or build a home but are unable to get a loan from two lenders (banks or building societies) you may be eligible to apply to a local authority for a House Purchase Loan or a Home Choice Loan (see below).

Home Choice Loan

• Home Choice Loan is a mortgage for first time buyers to buy a new or second hand home or to build their own home.  Home Choice Loan may be an option if you are a first time buyer and have been unsuccessful in obtaining finance on the open market but are in a position to borrow and repay a mortgage.  Home Choice Loan provides up to 92% of the market value of the property you are buying or building. The maximum amount you can borrow is €285,000.  The loan is a normal capital and interest bearing mortgage, which you have to repay each month.

Affordable Homes

• An affordable home is for people who cannot afford to buy a home on the open market.  It is provided at a discount to the market price, and must be owner occupied.
• If the home is sold within 20 years, a percentage of the sale price is paid to the local authority.  This is known as a 'Clawback'.
• Different types of affordable homes are available to buy, including: one-, two- and three-bedroomed apartments and two- and three-bedroomed houses.
• Most affordable homes are in private developments. Usually, a percentage of all houses or apartments in a private development are made available to be sold as affordable homes. These are sold at a discount to other houses and apartments in the development.
• Check with your local authority for details or visit www.affordablehome.ie

Home Ownership Supports for Low Income Households:

1. Mortgage Interest Tax Relief
   Homeowners are given financial support in the form of mortgage interest tax relief. Mortgage interest relief is a tax relief based on the amount of mortgage interest that you pay in a given tax year for your principal private residence (your home). It is administered via Tax Relief at Source (TRS).
2. Mortgage Interest Supplement
   Mortgage Interest Supplement provides short term support for people who need it to help pay their mortgage interest. It is administered by Community Welfare Officers. You will only get assistance with the interest portion of your mortgage repayments. You will not get help with the portion that pays off the actual loan and house insurance.
3. Tenant Purchase
   Tenant Purchase was introduced to enable tenants of local authorities to buy their own home at a reduced rate. To qualify you must be a tenant of the local authority for at least 12 months.  The price is set by the local authority. There is a discount for each year of your tenancy.
4. Mortgage Allowance Scheme
   The Mortgage Allowance Scheme is an allowance of up to €11,450 to go towards your mortgage, paid over a five-year period. If you are a tenant of the local authority, or you are buying the home you previously rented from the local authority and you want to buy an affordable home, you may qualify for the mortgage allowance.