Local authority home improvement loans
What are local authority home improvement loans?
You may be able to get a local authority home improvement loan if you want to improve, repair or extend your home and can't get a loan from a bank or building society. You must own and live in the home to qualify for the loan. These loans are only available from some local authorities, so you should contact your local authority to check if the scheme operates in your area.
Do I qualify?
To qualify for a local authority home improvement loan you must show the local authority that you cannot get a loan from a bank or building society. You must also meet one of the following criteria:
- Your house needs to be improved, repaired or extended because it is overcrowded and your income satisfies the income test below
- You are registered on a housing waiting list with a local authority
- You are a local authority tenant or a tenant purchaser and you want to buy a private house and return your present house to the local authority
- You are a tenant for more than one year of a home provided by an approved housing body (AHB) and you want to buy a private house and return your present house to the AHB
You only need to satisfy this income test if you need the loan to improve your home because it is overcrowded and you are not covered by one of the other criteria above.
You qualify if:
- You are a single-income household and your gross income before tax in the last income tax year was €40,000 or less
- You are a two-income household and your income is €100,000 or less after this calculation. Multiply the gross income (before tax) of the higher earner in the last income tax year by 2.5 and add the gross income of the other earner in the last income tax year.
How much can I borrow?
The maximum improvement loans are:
- €38,000 if the loan is secured by a mortgage on the house (or €50,000 if the home is on an offshore island)
- €15,000 if the loan is not secured by a mortgage on the house
A variable interest rate applies on these loans.
How long do I have to repay the loan?
You must repay the loan within 15 years of getting the payment.
How to apply
Contact your local authority to check if this scheme is available in your area and to find out how it works there.