Local Authority Home Loan Calculator Ireland – Complete Guide to the Council Mortgage
The Local Authority Home Loan (formerly the Rebuilding Ireland Home Loan) is a government-backed mortgage designed to help first-time buyers and eligible applicants who cannot secure sufficient finance from commercial lenders. Our local authority home loan calculator helps you estimate your monthly repayments at the fixed 3.35% interest rate, check loan limits for your area, and compare costs with standard commercial mortgages — all in seconds.
What Is the Local Authority Home Loan?
The Local Authority Home Loan Ireland is a mortgage provided by your local council (city or county council) at a fixed interest rate for the full term of the loan. It was introduced to replace the Rebuilding Ireland Home Loan scheme and is available to applicants who meet specific income and eligibility criteria. The key advantage is its fixed interest rate of 3.35%, which provides payment certainty for up to 30 years — something most commercial mortgages cannot offer.
Loan Limits and Location Rules
The maximum loan amount depends on where you plan to buy:
- •Dublin, Cork, and Galway: Maximum loan of €320,000
- •Rest of Ireland: Maximum loan of €250,000
- •LTV limit: Maximum 90% loan-to-value (minimum 10% deposit)
- •Term: Up to 30 years
Eligibility Requirements
To qualify for the local authority home loan, you must meet the following criteria:
- •First-time buyer (or a fresh start applicant following divorce/separation, or someone who has undergone insolvency)
- •Income limits: Gross annual income up to €70,000 for a single applicant or €85,000 for joint applicants
- •Refused by two lenders: You must have been turned down by at least two commercial mortgage providers
- •Primary residence: The property must be your principal private residence
- •Employment: Must be in continuous employment for at least two years (or self-employed for three years)
Local Authority Loan vs Standard Mortgage
The main advantage of the local authority mortgage is the long-term fixed rate. While commercial lenders typically offer fixed rates for 1–10 years before reverting to a variable rate, the Local Authority Home Loan is fixed at 3.35% for the entire term. This means your monthly payment will never change, giving you complete certainty for budgeting. Use the comparison table above to see how this rate compares with typical commercial mortgage rates.
However, there are trade-offs. The loan limits may be lower than what you could borrow commercially, and the eligibility criteria are strict. If you can secure a lower rate from a commercial lender, even for a fixed period, it may work out cheaper overall. The local authority mortgage calculator above helps you compare these scenarios.
Making Extra Payments
Even with the attractive fixed rate, making extra payments on your local authority home loan can save you a significant amount of interest over 25–30 years:
- ✓Interest savings: An extra €100/month on a €250,000 loan can save over €20,000 in interest
- ✓Earlier payoff: Extra payments can reduce your 25-year term by 3–5 years
- ✓Financial freedom: Owning your home outright sooner provides peace of mind
How to Apply
Applications for the Local Authority Home Loan are made through your local city or county council. You will need to provide proof of income, evidence of refusal from two commercial lenders, identification, and details of the property you wish to purchase. The approval process typically takes 6–8 weeks, though this can vary by local authority.
Important Considerations
- ⚠The fixed rate of 3.35% applies to new applications — existing Rebuilding Ireland loans may have different terms.
- ⚠Mortgage protection insurance is required and is an additional cost.
- ⚠Home insurance is required before drawdown.
- ⚠Check with your local authority for the most up-to-date terms and conditions.
Summary
The Local Authority Home Loan is an excellent option for eligible first-time buyers in Ireland who cannot secure a commercial mortgage. Use this free local authority home loan calculator to estimate your monthly repayments, compare with standard mortgages, and explore how extra payments can reduce your borrowing costs. Always contact your local council directly for the most current eligibility requirements and application procedures.