What is the Local Authority Home Loan Scheme?

Formerly the Rebuilding Ireland Home Loan, the programme was revamped in January 2022 and changed to the Local Authority Home Loan Scheme.

The Local Authority home Loan scheme is a government-backed mortgage for first-time buyers and fresh start applicants, accessible on a national level through local authorities.

Overview of the Local Authority Home Loan Scheme:

local authority home loan scheme

  • It is open to Fresh Start applicants

    • A “Fresh Start” applicant specifically refers to an applicant who may be divorced, legally separated/separated or the relationship has ended, with no financial interest in the family home, making them eligible for this scheme also.

  • It is also open to applicants who have undergone personal insolvency/bankruptcy proceedings.

  • With this specific scheme, the interest rate is fixed over the lifetime of the mortgage, making repayments the same for the duration.

  • It is usable on a new build, second-hand home, self-build, with the Local Authority providing up to 90% of the property’s market value. However, the maximum loan granted is determined on location.

Key Details

  • The scheme offers two varying 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%)*

  • To be eligible, applicants must have a gross annual income of less than €80,000 (single applicants) and €85,000 (joint applicants)

  • Applicants also must have at least 10% of the property’s market price or purchase price, whichever is the lesser.

  • The Help To Buy scheme can be used towards the required 10% deposit.

  • You can borrow up to 90% of the market value of the property.

Maximum market values of the property that can be purchased or self-built vary by local authority area and were updated in April 2026. Please refer to localauthorityhomeloan.ie for the current property price ceiling that applies in your area.

Note: Please verify the APR figures (4.07% and 4.13%) against the current rates on localauthorityhomeloan.ie before publishing, as these may have been updated alongside the April 2026 changes.

For more information on this Scheme please visit: https://localauthorityhomeloan.ie/ , which will cover:

  • What is a Local Authority Home Loan
  • Am I eligible
  • What are my interest rate options
  • How much can I borrow?
  • How do I apply

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Warning

If you do not keep up your repayments you may lose your home.

Warning

The Cost of your monthly repayments may increase

Warning

This new loan may take longer to payoff than your previous loans. This means you may pay more than if you paid over a shorter term

Warning

Purchasing this product may negatively impact on your ability to fund future needs