Local Authority Home Loan
A fixed rate mortgage from your local authority of up to 90% of the market value of the home, with the most you can borrow set by county, from €279,000 to €373,500.
Last checked October 2026
What it is
A government mortgage from your local council for people who cannot get a big enough loan from a bank. The big difference from Help to Buy and the First Home Scheme is that it covers second-hand homes and self-builds as well as new builds. You normally need to be a first-time buyer, but there are two ways round that. One is the Fresh Start principle, if you are divorced or separated or came through insolvency or bankruptcy. The other is if you only ever owned a property through inheritance. There is also a faster route if your landlord has served you a notice of termination. You can borrow up to 90% of the market value, with price ceilings by county: €415,000 in Dublin, Kildare and Wicklow, €375,000 in Cork, Galway City and Meath, then €345,000 and €310,000 elsewhere. Income limits are €80,000 single and €85,000 joint. You need two years of continuous employment as the main earner, one year if you are the second earner on a joint application, and evidence that two banks turned you down or offered too little. Aged 18 to 70. It cannot be combined with the First Home Scheme, but it CAN be the mortgage behind an Affordable Purchase or Starter Home Purchase home.
Who can get it
- You are a first-time buyer or eligible under the Fresh Start principle. Fresh Start covers a person whose relationship has ended and who has left the family home and kept no interest in it. It also covers a person who lost a home through insolvency or bankruptcy and exited that process at least 12 months ago. In both cases you must have sold or given up every home you bought or built before. Fresh Start cannot be used to buy out a former partner's share of the family home. Owning a home only through inheritance does not count against you.
- You are aged 18 to 70, you will live in the home and you have a right to reside in the State. Couples, civil partners and partners in a committed relationship must apply together.
- Your gross income is no more than €80,000 as a single applicant or €85,000 jointly.
- Two regulated lenders have refused you or offered less than you need. You also need two years of continuous employment (one year if you are the second earner on a joint application), a savings record of at least 12 months and a good credit record.
- The home's market value cannot be above €415,000 in Dublin, Kildare and Wicklow, €375,000 in Cork, Galway City and Meath, €345,000 in Clare, Galway County, Kilkenny, Limerick, Louth, Waterford, Westmeath and Wexford or €310,000 in the other counties. A home bought under a State starter home scheme can have a market value above these limits, but the price you pay must be within them. The most you can borrow is 90% of those figures, from €373,500 down to €279,000.
- You need a deposit of at least 10%. At least 3% must come from your own savings and up to 7% can come from an unborrowed source, such as a gift. Help to Buy can go towards the deposit on a new home or self-build.
- The rate is fixed for the full term. In October 2026 it was 4.00% for up to 25 years and 4.05% for over 25 and up to 30 years. The rate is set on the date of drawdown and can change before then. The maximum term is 30 years and is shortened if the oldest applicant would pass 70 before it ends. Mortgage protection insurance is required.
- You cannot use it for a home bought under the First Home Scheme. You can use it to buy a newly built home under a State starter home scheme if your mortgage and deposit will not cover the market value, as long as the price you pay is within the county limit. It cannot fund a refurbishment, although a separate Purchase and Renovation Loan exists for some derelict homes. A self-build must be a new construction that has not yet started.
- Tenants served with a notice of termination have a faster application route to buy their current home or another one.
How to apply
Applications go to the local authority in the area where you want to buy, using the application form on localauthorityhomeloan.ie. Have your proof of two lenders' decisions, dated within 12 months of the application, ready with your income and savings documents.
Go to the official page →Checked against the official source on 7 October 2026. Always confirm the details on the official page before applying.
Questions people ask
How much can I borrow?
Up to 90% of the market value of the home, but the home's value must be within the limit for the county. That puts the most you can borrow at €373,500 in Dublin, Kildare and Wicklow, €337,500 in Cork, Galway City and Meath, €310,500 in the next group of counties and €279,000 elsewhere.
Can I use it for a second-hand home or a self-build?
Yes. It covers new and second-hand homes and self-builds. A self-build must be a new construction, so a house that is part-built or already started when you apply will not be considered.
Can I use it with Help to Buy or the First Home Scheme?
You can use Help to Buy towards your deposit if you are buying or self-building a new home. You cannot use the Local Authority Home Loan for a home bought under the First Home Scheme.
What if my landlord has served me a notice of termination?
There is a faster application process for tenants who have received a notice of termination. You can use it to buy your current rental property or another property, as your principal private residence. Contact the local authority in the area where you want to buy.
Related guides
- Help to Buy
- First Home Scheme
- Affordable Purchase Scheme
- Cost Rental Tenant in Situ
- Mortgage Interest Tax Credit
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