Rebuilding Ireland home loan

DonnieCorko

I am wondering if anyone has got 5x or more of their salary for this scheme? I thought you could get 5x but when I input my salary in the calculator (50k), it comes out at a maximum loan amount of 223k instead of the expected 250k, which now is pretty much the same as what the banks would give me.

Anyone know what the situation is?

shawki

https://www.boards.ie/discussion/comment/121276900#Comment_121276900

Interest rates went up a few weeks ago reducing what people can borrow.

RichardAnd

https://www.boards.ie/discussion/comment/121276921#Comment_121276921

I think that the rise in rates only increases the monthly payment; it doesn’t decrease the total amount that one can borrow.

When I applied for a mortgage, 3.5 times gross salary was offered, but I was told that exceptions could be made. It’s currently 4 times the gross salary, so I would assume that exceptions allow this limit to rise to 5 times, or close enough. It depends on the bank.

shawki

https://www.boards.ie/discussion/comment/121277281#Comment_121277281

It does affect borrowing amounts.

You are talking about banks, this thread is only for the LAHL.

RichardAnd

https://www.boards.ie/discussion/comment/121277531#Comment_121277531

Ah okay. Apologies for the confusion.

DonnieCorko

https://www.boards.ie/discussion/comment/121277531#Comment_121277531

Thats crazy that it affects the borrowing amounts. Where did you hear that?

I can get 200k with the bank or 225k with the RIHL. It used to be 250k, almost pointless waiting for RIHL at this stage.

shawki

https://www.boards.ie/discussion/comment/121296415#Comment_121296415

From checking the calculator. When the interest rate went up at the end of September, what I could borrow was reduced by €17k.

Went from 4.85x to 4.46x income.

Single buyer so the amounts may be different from a couple.

DonnieCorko

https://www.boards.ie/discussion/comment/121297430#Comment_121297430

Thank for the reply. I also seem to be at 4.5 times my income as well. I heard before of people getting as much as 5.2 times their income (few years ago in this thread) which was more than what the calculator said so hopefully they will still do something simiiar.

waterfordgirl

Hi Everyone. Im about to apply for the Local Authority Homeloan and need 2 insufficient offers/declunes. I'll get obe online from AIB - where else are they handy/straightforward to get? Lotsa paperwork required so just want to get these as handy as possible!

akelly02

https://www.boards.ie/discussion/comment/121309533#Comment_121309533

boi and ptsv have online calculators you can print.

shawki

https://www.boards.ie/discussion/comment/121309533#Comment_121309533

BOI took about two days last time I did it.

JCN12

You can also get approval in principle from AIB online, well at least you could up until last year without too much effort.

shawki

Anyone have luck drawing down recently?

The interest in this scheme seemed to have died down a lot since the last increase.

WoolyJumper

Anyone know if there are restrictions on if/when you can sell you house? Not that that is in the plan but good to know if something came up. I felt like I read 5 year but I can deem to find any info online now

shawki

https://www.boards.ie/discussion/comment/121656368#Comment_121656368

No restrictions on selling.

Kbash599

Hey all,

Hoping to apply for this in the Laois area. I'm working full time in the same job since 2021 and my wife is on long term disability and receives carers allowance, we have 2 children 14 and 6. I understand that the council will consider some form of social welfare payments as long as one income is from full time work, would be really curious if anyone with a similar situation has applied and how you got on.

Also a question on savings. We have been saving for this for the past 2 years and finally ready to apply. We save 2k per month and have done for approx 18 months, looking through the statements in addition to this we also on 2 occasions put a small bit extra in within the last 12 months, and last march also paid in 2500. I previously read that we should be saving the exact same amount every month. Does anyone who has applied successfully have any experience with this that can clarify?

Any information would be greatly appreciated!

JCN12

https://www.boards.ie/discussion/comment/121679940#Comment_121679940

The amount saved should be the same every month.

Additional savings at random are ok as long as your regularly monthly savings do not vary and are allocated around the same time every month.

shawki

https://www.boards.ie/discussion/comment/121679940#Comment_121679940

They won’t consider the extra amounts, they’ll stick with the regular figure.

Prepare for the long haul, my approval took 12 weeks.

Biggest sticking point for me was my credit card usage, they just prefer if you don’t use it at all.

Kbash599

https://www.boards.ie/discussion/comment/121682484#Comment_121682484

Oh dear that is worrying to hear.

We do have a credit card with 1500 limit. It is occasionally used but never more than 50 euro owing at any given time and always paid within the month. Currently zero balance. As 6 months statements are required, these will show it was used 4/6 months. I would wait for 6 months no use but unfortunately we have to leave our current house before the end of August so not much time.

In the end did you have to close the credit card down in order to get a mortgage?

shawki

https://www.boards.ie/discussion/comment/121683573#Comment_121683573

It was only my recent credit card statement they were concerned with.

I still got approved but €4K less than the calculator with a balance of around €400, I was told to keep the balance at €0.

WoolyJumper

I recently got approval and noticed that once going sale agreed on the property for final loan approval they want a structural report and a drainage report. Is this standard for every property or will this only be required depending on the outcome of the valuation and structural report? For example if there is no issues with the structural report will they still require a drainage survey. That could get complicated if you are buying an apartment for example.