Home Choice Loan
Introduction
Home Choice Loan is a mortgage for first-time buyers who cannot get a mortgage or sufficient finance from a bank or a building society. It provides access to credit for first-time buyers who can afford to purchase on the open market and can afford to repay a mortgage.
A Home Choice Loan is the same as a normal capital- and interest-bearing mortgage which is repaid on a monthly basis.
Four designated local authorities provide Home Choice Loans on behalf of all remaining local authorities.
Rules
Who can get a Home Choice Loan?
To qualify for a Home Choice Loan you must:
- Be a first-time buyer (some exceptions may apply, for example, if divorced)
- Earn more than €35,000 as a single applicant or over €45,000 combined income as joint applicants
- Be in continuous employment for at least one year (if self-employed you must be able to submit 2 years' certified accounts)
- Have proof of being unsuccessful in securing a sufficient mortgage from 2 banks or building societies to buy a home.
What property can you buy?
Home Choice Loan is available for the purchase of a new or second-hand property or to build your own home. The property must comply with building and planning regulations and must be:
- Acceptable for mortgage purposes
- Located in the Republic of Ireland
- For sale on the open market
- A residential property that you will live in
- Covered by Home Bond, Premier Guarantee or equivalent (new properties only)
- No larger than 175 square metres
Rates
Home Choice Loan will provide up to 92% of the market value of a property up to a maximum of €285,000. This means, you can borrow up to €285,000 depending on your income, up to a maximum of 92% of the value of the property purchased.
Your mortgage term can be for a period up to 30 years.
A Home Choice Loan may not be increased in the future. However, you can refinance your Home Choice Loan by switching it to another bank or building society.
Interest rate
Home Choice Loan has only one interest rate, which is variable.
The interest rate is currently (May 2011) 4.2% variable (4.28% APR). The Annual Percentage Rate (APR) is higher than the variable interest rate because the APR takes into account some of the costs that you pay when getting the mortgage.
At the current interest rate of 4.2%, the cost per thousand is €4.89 per month over a 30-year term.
For example: A €200,000 Home Choice Loan will cost you €978 per month at the current interest rate.
How to apply
To apply for a Home Choice Loan first you must contact a Home Choice Loan authorised broker in your area to see if you are eligible for a Home Choice Loan. If you are eligible and have a property you want to buy you should complete an application with your broker. Your broker will submit your application to a centralised Home Choice Loan assessment service.
Your mortgage broker will be told of the decision. If you are successful, you will need to get an authorised valuer to assess the value of the property you want to buy. You will also need to appoint a solicitor to undertake the legal conveyance work.
Once the valuation is agreed, and all other requirements satisfied, a loan offer will be issued by one of the 4 designated local authorities.
Four designated local authorities operate the scheme on behalf of all other local authorities. The 4 designated local authorities are:
- Dublin City Council
- Cork City Council
- Kilkenny County Council
- Galway County Council
Where to apply
Contact a Home Choice Loan authorised broker in your area to see if you are eligible for a Home Choice Loan.
More information is available from the Home Choice Loan website or from Lo-call 1890 252 842.
A Home Choice Loan customer brochure (pdf) is available on the Home Choice Loan website.
Language
Related Documents
- Paying for a home in Ireland
Loans for buying a home in Ireland are available from building societies, banks, and local authorities. There are different kinds of mortgages, and tax relief is available on interest payments. - Local authority mortgages
Local authorities can provide mortgages to people who cannot get a loan from a building society or bank. - Mortgage interest relief
Tax relief on mortgage interest payments, including new arrangements for 2012.
Contact Us
If you have a question relating to this topic you can contact the Citizens Information Phone Service on 0761 07 4000 (Monday to Friday, 9am to 9pm) or you can visit your local Citizens Information Centre.