Only half of first-time home buyers got mortgage approval under a government-backed program
Only half of first-time buyers who applied for a government-backed mortgage program got approval.
Data from the Ministry of Housing shows that only 3,942 first-time buyers out of 7,949 applicants have been given the green light since the launch of the Rebuilding Ireland Home Loan program in February 2018.
This equates to only 50% of applicants nationwide.
Rebuilding Ireland Home Loans are government guaranteed mortgage loans for first time buyers available from 31 local authorities.
It can be used to buy new or used property or for self-build, providing up to 90% of the property’s market value.
First-time buyers must have been refused a mortgage or offered an insufficient mortgage loan by at least two banks or building societies to benefit from the program.
The maximum loan amount is determined by the location of the property and applicants must have an annual gross income of € 50,000 as a single applicant or € 75,000 as joint applicants.
Data released in a parliamentary question shows Meath County Council has the highest mortgage approval rate, with 63% of applicants getting the home loan.
Dublin City Council has the second highest rate at 61%, while Westmeath County Council has the third at 59%.
Leitrim County Council has the lowest mortgage approval rate, with just 26% of applicants getting the home loan.
Monaghan County Council approved only 30% of applicants, while Mayo County Council, Waterford City and County Council, and Carlow County Council all approved only 36% of applicants. mortgage applicants.
The Fingal County Council, which approved 56% of first-time buyers, received the largest number of applicants, with 1,018, since the launch of the home loan program more than three years ago.
Dublin City Council received the second highest number of applications, with 906, and approved 61%.
South Dublin County Council received 531 applications and granted mortgages to 52% of applicants.
The most common reasons first-time buyers were not approved were because they had not demonstrated repayment capacity, their net income ratio was not in line with policy, or they had an unsatisfactory savings balance or report from the Irish Credit Bureau.
First-time buyers with poor financial management were also refused mortgage loans.
Housing Minister Darragh O’Brien said local authorities ultimately decide whether or not to grant government guaranteed mortgages to first-time buyers.
He said: “The Housing Agency provides a central support service which assesses applications for a reconstruction mortgage in Ireland on behalf of local authorities and makes recommendations to authorities to approve or deny applications.
“Each local authority must have a credit commission and it is up to this commission to decide on loan applications, in accordance with the regulations, with regard to the recommendations made by the Housing Agency.
“The final decision on loan approval rests with each local authority and its credit committee on a case-by-case basis.
“Decisions on all housing loan applications must be made in accordance with the legal credit policy underlying the Scheme, in order to ensure consistency of treatment for all applicants.
“Loan applicants who are dissatisfied with a loan application decision from a local authority credit committee can appeal that decision to the local authority. Details of the appeal process can be obtained from the competent local authority. “
He added: “The Rebuilding Ireland mortgage program is designed to provide creditworthy first-time buyers with access to sustainable mortgages to purchase new or used properties.
“The Rebuilding Ireland home loan gives first-time buyers access to mortgage financing that they might not otherwise have been able to afford at a higher interest rate.
A total of 210 million euros has been granted this year to local authorities to lend under the Rebuilding Ireland mortgage program.
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