More homebuyers in Donegal now eligible for Local Authority Home Loan

The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, today announced significant improvements to the Local Authority Home Loan that will result in more people in Donegal being eligible to apply for the State-backed mortgage.

The prices of homes eligible for a Local Authority Home Loan and income limits of those eligible to apply for a loan are being increased.

From 01 March 2023, house price limits for homes in Donegal that are eligible for the Local Authority Home Loan will increase by €25,000 from €250,000 to €275,000.


Income limits for joint applicants will increase to €85,000 and the income limit for a single applicant in Donegal will increase to €70,000.

The Local Authority Home Loan was launched in January 2022 as part of Housing for All. It supports creditworthy borrowers who are unable to get finance from commercial banks to buy a home. It can be used for new, second hand or self-build homes. It means those on more moderate incomes are helped by the State to achieve homeownership, a key aim for this Government.

Speaking after the announcement, Minister O’Brien said, “I am delighted to announce these improvements to the Local Authority Home Loan which will take effect from March 1st. Supporting home ownership is a key objective for this Government and the increase in eligible house prices coupled with the increase in income limits will mean more people in Donegal can access the loan.

“Importantly, building on changes made this time last year we are again increasing the income limit for single applicants so that those earning up to €70,000 who wish to purchase a home can avail of the State backed loan. The ‘Fresh Start Principle’ also applies whereby people who are divorced or separated and have no interest in the family home, or who have undergone insolvency proceedings, can also avail of the loan.

“The changes reflect the reality of today’s housing market and we will continue to keep the Local Authority Home Loan under review to ensure it remains a genuine and relevant support for people in Donegal who want to own their own home.”

Since February 2018 over 3,300 people have got on the property ladder through the Local Authority Home Loan and its predecessor the Rebuilding Ireland Home Loan.

Minister O’Brien, along with Public Expenditure and Reform Minister Paschal Donohoe TD, will sign the amendment regulations in the coming weeks.


The changes will take effect on 01 March 2023.

More information on the Local Authority Home Loan can be found at:

Receive quality journalism wherever you are, on any device. Keep up to date from the comfort of your own home with a digital subscription.
Any time | Any place | Anywhere

and get access to our archive editions dating back to 2007
Every Thursday
Every Monday

Donegal News is published by North West of Ireland Printing & Publishing Company Limited, trading as North-West News Group.
Registered in Northern Ireland, No. R0000576. St. Anne's Court, Letterkenny, County Donegal, Ireland