Local Authority Mortgages expanded as property price ceilings and single income limit rise helping more people to become homeowners
- Published on: 19 February 2026
- Last updated on: 19 February 2026
The Minister for Housing, Local Government and Heritage, James Browne TD has today announced significant enhancements to the Local Authority Home Loan and the Local Authority Purchase and Renovation Loan, increasing both the maximum eligible property prices and the income thresholds for applicants.
These changes will enable more individuals and families across the country to qualify for a State-backed mortgage. The revised limits are designed to reflect current market conditions and ensure that prospective first-time buyers and other eligible applicants have an opportunity to access the necessary finance to purchase their own home.
Minister Browne said:
“Raising the income thresholds and property price thresholds ensures the Local Authority Home Loan remains an effective support for people who are ready to buy but face challenges accessing finance. These changes reaffirm the Government’s commitment to widening access to sustainable homeownership.
“Supporting people on moderate incomes to realise their ambition of becoming homeowners is a key objective of our Housing Action Plan, Delivering Homes, Building Communities. By increasing both property price ceilings and the single income limit, we are ensuring more people can access a secure mortgage and take an important step towards homeownership.”
The Local Authority Home Loan was launched in January 2022 and the Local Authority Purchase and Renovation loan was launched in July 2024. Both loans support creditworthy first-time buyers and fresh start applicants who are unable to get sufficient finance from commercial banks to buy a home or buy and renovate a vacant or derelict property that is eligible for the Vacant Property Refurbishment Grant.
Since February 2018 over 4,300 people have managed to buy their own home through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.
The changes to the Local Authority Home Loan and the Local Authority Purchase and Renovation loan will come into effect in Q2 2026 and are outlined in the Editors Note below.
More information on the Local Authority Home Loan can be found on the Local Authority Home Loan webpage.
ENDS
EDITORS NOTE
What are the changes to the Local Authority Home Loan and the Local Authority Purchase and Renovation loan from the existing rules?
(1) New house price limits for all local authority areas:
- €415,000 – an increase from €360,000 for Dun Laoghaire Rathdown, South Dublin County Council, Dublin City Council, Fingal County Council, Kildare and Wicklow;
- €375,000 – increase from €330,000 for Galway City, Cork City, Meath and Cork County;
- €345,000 – increase from €300,000 for Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford and an increase from €330,000 for Galway County and Louth;
- €310,000 – increase from €275,000 for Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary.
(2) Increased income limit for all single applicants in each local authority area:
- increase from €70,000 to €80,000 for all single applicants.
- the joint applicants’ income limit will remain at its current level (€85,000).
Local Authority Home Loan
The Local Authority Home Loan offers two fixed interest rate products:
- 4.00% fixed for up to 25 years (APR 4.07%).
- 4.05% fixed for up to 30 years (APR 4.13%).
Local Authority Purchase and Renovation Loan
The Local Authority Purchase and Renovation loan offers the same interest rates as the Local Authority Home Loan and a two-year variable interest rate bridging loan at 3.50% (APR 3.56%).
The bridging loan is equal to the amount of the Vacant Property Refurbishment Grant and is repayable to the local authority once the grant is paid out or within two years, whichever is the earliest.
For clarity and in respect of the Local Authority Purchase and Renovation Loan, the combined amount of the fixed rate annuity loan and the interest only bridging loan cannot exceed the maximum amount that can be borrowed.
More information on the Local Authority Purchase and Renovation Loan can be found on the Local Authority Purchase and Renovation Loan webpage.