Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 896 and 897 together.

The Local Authority Home Loan is a Government backed mortgage scheme for creditworthy applicants who cannot get sufficient funding from commercial banks to purchase or build a home. It has been available nationwide from local authorities since 4 January 2022 for first-time buyers and fresh start applicants. The loan can be used both for new and second-hand properties, or to self-build.

Local authorities borrow from the Housing Finance Agency to finance their lending under the Local Authority Home Loan scheme.

The interest rate for the Local Authority Home Loan is not directly linked to the European Central Bank refinancing rates; however, as the cost of finance to the Housing Finance Agency is determined by the cost of finance on international markets, the monetary policy decisions of the European Central Bank do ultimately have an influence. Loans issued under the Local Authority Home Loan must be on a prudential basis in order to protect the financial interests of both borrowers and local authorities, which may result in interest rate changes for future funding tranches.

The current interest rate charged to new borrowers for loans drawn down is as follows:

• For mortgages up to 25 years the interest rate to be applied is 4%
• For mortgages over 25 and up to 30 years the interest rate to be applied is 4.05%

The total cost to local authority borrowers for new loans is set out below. This includes the Local Authority Mortgage Protection Insurance [LAMPI] premium. The Local Authority Mortgage Protection Insurance scheme has applied to all house purchase loans approved by local authorities after 1 July 1986, including the Local Authority Home Loan scheme. Local authority mortgage protection insurance, for life only cover, is currently charged at the rate of 0.182%.

The total payment per month per €1,000 of a loan therefore is:

• 25 Year loan: €5.43 (€5.28 + €0.15 LAMPI)
• 30 Year loan: €4.95 (€4.80 + €0.15 LAMPI)

Further information on the Local Authority Home Loan Scheme can be found at: localauthorityhomeloan.ie/

The First Home Scheme does not apply an interest rate. A service charge applies to the percentage value of unredeemed equity from year 6 in order to cover administrative costs associated with the equity facility. Further information on the First Home Scheme service charge is available at: www.firsthomescheme.ie/about-the-scheme/managing-your-equity-facility/

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The Tenant (Incremental) Purchase Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the scheme. The scheme is underpinned by the Housing (Miscellaneous Provisions) Act 2014 and the Housing (Sale of Local Authority Houses) Regulations 2015, as amended by the Housing (Sale of Local Authority Houses) (Amendment) Regulations 2023.

The Regulations provide for a number of specified classes of houses to be excluded from sale, including houses which have been specifically designed for occupation by one or more elderly person. This ensures that, at a time of unprecedented demand, and at a time where my Department must consider the diverse needs of an ageing population, that the stock of houses designed for occupation by older persons is not eroded over time and the properties remain available for people most in need of social housing support.

My Department monitors schemes such as this on an ongoing basis to ensure that they remain effective and sustainable, however, there are no plans to amend this aspect of the scheme at this time.