Applying for a Local Authority Loan

  • Rebuilding Ireland Home Loan

    Rebuilding Ireland Home Loan is a government backed mortgage for first time buyers.  It is available nationwide from all local authorities from 1st February 2018.  As a first time buyer you can apply for a Rebuilding Ireland Home Loan to purchase a new or second-hand property, or to build your own home.  The maximum market value of the property that can be purchased or self-built in the Galway City Council administrative area is €320,000.


  • Eligibility Criteria

    • You must be a First Time Buyer
    • Single applicant’s income must be less than €50,000
    • Joint applicants’ combined income must be less than €75,000
    • The primary earner on the application form must be in continuous employment for at least two years (this can be self-employment) and the second applicant must have at least one year’s continuous employment. Temporary amendments to these condition apply in light of economic impacts of COVID-19.  (See
    • Aged between 18 and 70 years (i.e. loan term must cease by the time the borrower reaches 70 years of age).
    • Applicants must prove that they have sought a mortgage from two lenders (banks or building societies) and have received inadequate funding offers or refusals from each before making an application
    • The maximum market value of a property that can be purchased in Galway City is €320,000.
    • The maximum loan amount that may be advanced is €288,000 over a maximum term of 30 years. The maximum loan-to-value ratio is 90%. 
    • All applications will be assessed based on the applicant(s) current income, their existing loans and financial commitments. An additional Mortgage Protection Insurance fee is levied on successful loan applications.
    • The property you wish to purchase must be located in the Galway City Council administrative area.
    • Applications should be submitted by post, preferably registered post as the applicant will have a record of it. All applicants will be interviewed before a Letter of Offer is sent.

    Rebuilding Ireland Home Loan - Application Form

    Rebuilding Ireland Home Loan - Frequently asked questions


  • Mortgage Protection Insurance

    It is a mandatory requirement that all applicants qualify for and have the approved Local Authority Mortgage Repayment Protection Plan (MRPP) Group Insurance Scheme in place before a loan can be issued. The current insurer is Utmost PanEurope dac.  At the point of joining the MRPP Scheme the borrower(s) must meet with the following:

    • Has attained the age of 18 years but not 55 years (60 if already covered under the policy and subsequently insuring rental equity/shared ownership element)
    • Was at work, and

    If this criteria is not satisfied it is only possible to obtain life cover.

    • Has not been prescribed, taken or been advised to take and medication or treatment for pre-existing medical conditions in the last 12 months for a period of more than 3 weeks (colds, influenza, backache, and oral contraceptive pill may be ignored) and,
    • In the last 24 months was not under the care of a consultant or specialist, or due to attend a hospital follow up or awaiting any medical referral, medical investigation, medical test results, surgical procedure or consultant, specialist or hospital appointment and,
    • Not been declined for Life, Disability or Private Medical Insurance and,
    • Continues to reside in the property covered by the agreement.


    If you do not keep up your repayments you may lose your home.  If you do not meet the repayments on your loan, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.  You may have to pay charges if you pay off a fixed-rate loan early.


  • Mortgage Allowance Scheme

    The Mortgage Allowance Scheme is a social housing option which assists tenants and tenant purchasers of local authority dwellings, who wish to return their dwellings to the authority and purchase or build a private dwelling for their own occupation.  It does this by reducing their mortgage repayments over the first five years of their mortgage.  The amount of the allowance is €11,450 payable over five years.  The allowance is paid directly to the lending agency and results in your mortgage repayments in the first five years being reduced by the relevant annual amount of the allowance, i.e. 

    • €3,560 in the 1st year
    • €2,800 in the 2nd year
    • €2,040 in the 3rd year
    • €1,780 in the 4th year
    • €1,270 in the 5th year

    The allowance paid in any year cannot exceed the amount of the mortgage repayments, and the applicant must continue to occupy the private dwelling as his/her normal place of residence throughout the 5-year period to which the allowance relates.  Please contact the Loans Section for further information.