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Frequently Asked Questions

Please see below for a list of frequently asked questions about affordable housing in Ireland
What is an affordable home?
An affordable home is a home that you buy at a discount to the market price, and you must live in it.  If you sell within 20 years, you will have to pay back a percentage of the sale price to the local authority.
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How do I qualify for an affordable home? 
To qualify for an affordable home, you should:
  • Be a first-time buyer (but there are some exceptions, for example if you are divorced).
  • Have enough income to meet your mortgage repayments after you have paid all your other costs.
  • As a guide, earn between €25,000 and €58,000 if you are applying on your own and up to €75,000 between both of you if you are applying with someone else.  These are the approximate income limits only - lower income limits may apply.  
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What types of affordable homes are available?   
A range of different homes are available to buy, including
  • One, two and three-bedroomed apartments
  • Two and three-bedroomed houses
What makes these homes affordable is that they are all available at prices that are much lower than the market value.
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Who provides affordable homes? 
  • Most affordable homes are in private developments.  Usually, a percentage of all houses or apartments in a private development are made available to be sold as affordable homes.  These are sold at a discount to other houses and apartments in the development.  
  • Another way of providing affordable homes is to build them on land the local authority owns.  Land owned by the Government has also been made available for affordable homes.  Check with your local authority for details.
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How do I apply?
You apply to the local authority in the area in which you want to live in.  You can apply to more than one local authority.  Local authorities include county councils, city councils, borough councils and town councils.   All local authorities have application forms for affordable homes.  They may charge an application fee so check with your local authority.
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What happens once I apply?
The local authority will assess your application to decide whether you qualify for an affordable home.  They will send you a letter explaining the outcome of your application.  Some local authorities may ask you to go to a meeting to discuss your application in more detail.
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What are my chances of being offered an affordable home?
There is more demand for affordable homes in some places than others.  The number of affordable homes available may be limited in the area you would prefer to live in.  Keep you options open by considering alternative areas.
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How much is an affordable home?
An affordable home is a home that you buy at a discount to the market price, but the prices are different in different areas of the country.
The discount can also change depending on the property.  The price depends on the area in which you want to live and on the size and type of affordable home available.  The price of affordable homes in large towns and cities tends to be higher than elsewhere.  
In all cases you pay less for your affordable home than you would pay if you were buying it on the open market -  that is what makes it an 'affordable home'.
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Can I apply for an affordable home, if I am not an Irish citizen?
  • You may apply for an affordable home if you have the right to live and work permanently in Ireland. 
  • If you are from a country that is a member of the European Union (EU) or European Economic Area (EEA), you can apply for an affordable home as long as you are living and working in Ireland. 
  • If you are not from a country that is a member of the EU or EEA, you can check with your local authority.  The European Economic Area (EEA) includes the 25 EU member countries and Iceland, Lichtenstein and Norway.
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What is a mortgage?
A mortgage is a long-term loan that is secured against your home.
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How much can I afford to borrow?
As a guide, your mortgage repayments should not be more than one-third of your net income (after tax and social insurance (PRSI) have been taken off).  For example, if your net income is €2,700 per month, your mortgage repayments should not be more than €900 per month.  You need to be careful not to borrow more than you can afford to repay.
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What about a deposit and savings?
It is possible to borrow up to 97% of the purchase price of an affordable home.  This means that you need to save at least 3% of the price for a deposit.
You should be able to show that you have a record of saving.  Or, a record of rent paid may be taken into account as part of a saving record.  This can show your ability to pay a mortgage.
Banks/building societies may apply their own criteria, check with them first.
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Where can I get a mortgage for an affordable home?
You may get a mortgage either from the local authority or from the following organisations:
  • Bank of Ireland
  • Educational Building Society (EBS)
  • Ulster Bank
  • Haven Mortgages can be accessed through a mortgage broker
If you choose a mortgage with a bank or building society and the local authority offers you a home:
  • The local authority will give you a 'Confirmation for Lender' certificate, which describes the property and tells you the banks or building societies that may be willing to grant you a mortgage for your affordable home.
  • You can then take this certificate and apply for a mortgage with a bank or building society.  The term of your bank or building society mortgage (the number of years you make repayments for) can be for up to 35 years. 
If you choose a mortgage with the local authority:
  • The most you can borrow from a local authority is €220,000 (however, it is possible to buy a home with a value of more than this by taking part in a shared-ownership scheme).
  • The term of your local-authority mortgage can be for up to 30 years.
  • Your mortgage repayments cannot be more than 35% of your net income.  If you are applying for a mortgage with someone else, the repayments cannot be more than 35% of your net income put together.
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How long can a mortgage last?  
  • A mortgage can last from 15 to 35 years.  The number of years the mortgage lasts is called the term.  With a shorter term, you have higher monthly repayments but, because you pay the mortgage over a shorter period, you pay less interest in total.  With a longer term, you have lower monthly repayments but you pay more interest in total.
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Will I have to pay stamp duty?
As a first-time buyer, you will not have to pay any stamp duty.
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What about tax relief on my mortgage?
You get tax relief on the interest you pay on your mortgage.  The tax relief is applied by the lender providing your mortgage.  Your montly mortgage repayments are then reduced in line with this.  Your lender should give you with a TRS1 form which you will need to fill in and send to The Office of the Revenue Commissioners.
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Do I need mortgage-protection insurance? 
Yes. This is a special type of life assurance taken out for the term of the mortgage to make sure the mortgage is paid off if you die.
Mortgage-protection insurance from your local authority
If your mortgage is with the local authority, you must take out a mortgage-protection insurance policy with them and the cost will be added to your monthly repayments.
Mortgage-protection insurance from your bank or building society
If you get a mortgage with a bank or building society,  you will need to take out mortgage-protection insurance.  Discuss your options for mortgage-protection insurance with them.
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Am I entitled to other benefits?
If you are earning less than €28,000 a year (before tax and social insurance are taken off) or if you are a tenant of a local authority or voluntary housing association, you may qualify for help with your mortgage payments.
Mortgage Subsidy
A mortgage subsidy is help with your mortgage payments.  To qualify, your household income needs to have been less than €28,000 (before tax and social insurance is taken off) in the previous tax year and have your mortgage with the local authority.  Household income is the total income of the owners of the affordable home.  If you qualify for a mortgage subsidy your monthly mortgage repayments will be reduced.
Mortgage allowance scheme
    • The mortgage allowance scheme is an allowance of €11,450 to go towards your mortgage, paid over a five-year period.  If you are a tenant of the local authority, or you are buying the home you previously rented from the local authority, and you want to buy an affordable home, you may qualify for the mortgage allowance scheme. 
    • The allowance is paid directly to the lender providing your mortgage and your repayments are reduced for the first five years of your mortgage. The allowanxe paid in any year cannot be more than the total mortgage repayments due in that year. 
    • You may qualify for the mortgage subsidy and the mortgage allowance scheme, but you can only claim for one of them.  Which of these benefits you most will depend on your income.
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What is 'clawback'?
    • If you sell your affordable home within 20 years, you must pay back to the local authority a percentage of the sale price.  This is known as the 'clawback'.  This applies whether you have a local-authority mortgage or a mortgage with a bank or building society.
    • The local authority works out the clawback as follows.
    • When you buy your affordable home, you get it at a discount to other similar properties in the market.  The clawback is based on the percentage discount you get when you buy your affordable home.  If you decide to sell or remortgage your home, the local authority applies this percentage to the price you get for the sale. 
    • If you sell within the first 10 years, you must pay back the full percentage from the sale that you got as a discount when you bought your home. 
    • After 10 years, the percentage you must pay back reduces by one-tenth for each year you live in your home. 
    • If you sell your home after 20 years, you do not have to pay any 'clawback' to the local authority.  
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