Mortgage Allowance Scheme


Social housing tenants and tenant purchasers who are taking out a mortgage to buy or build a private house may qualify for the Mortgage Allowance Scheme. The Scheme is designed to ease the transition from social housing to paying a mortgage.

An allowance of up to €11,450 is payable directly to the lending agency over a 5-year period and your repayments are reduced accordingly for the first 5 years of the mortgage. Your mortgage may be from a commercial lending agency or from a local authority.


You may be eligible if 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. However, if you are buying a house under the Shared Ownership Scheme, you are not eligible for the Mortgage Allowance Scheme.
  • An approved housing body tenant for more than 1 year in housing provided under the Rental Subsidy Scheme, and you are giving up your tenancy and taking out a mortgage to buy or build a private house.

The house must be suitable for your needs, meet certain minimum standards and be acceptable to the local authority. The amount of the mortgage must be at least €38,092.14.

The allowance is paid directly to the lending agency and your mortgage payments are reduced in each of the first 5 years as follows:

Year Allowance per year
First €3,560
Second €2,800
Third €2,040
Fourth €1,780
Fifth €1,270

The allowance paid in any year cannot exceed the amount of the mortgage repayments.

How to apply

Your local authority will have more information and application forms.

Page edited: 2 September 2019