The Local Authority Home Loan is one of the most underused financial supports available to first-time buyers in Ireland — and one of the most valuable. It’s a government-backed mortgage scheme offering fixed interest rates significantly below the commercial market, available through your local county or city council. If you’ve been turned down by the banks, or if your income doesn’t quite stretch to commercial lending rates, this scheme is worth knowing about.
What Is the Local Authority Home Loan?
The Local Authority Home Loan (LAHL) is a government mortgage scheme that allows first-time buyers to borrow directly from their local authority (county or city council) rather than from a bank or building society.
The key advantage: the interest rate is set by the government, not by the commercial market. As of 2026, the fixed rate is 2.50% (25-year fixed) or 2.55% (30-year fixed) — substantially below the 3.10–3.45% available from commercial lenders.
The scheme is administered by the Housing Finance Agency (HFA) on behalf of local authorities. Funding comes from the Affordable Housing Fund.
Local Authority Home Loan Rates 2026
| Term | Fixed Rate |
|---|---|
| 25 years | 2.50% |
| 30 years | 2.55% |
Why these rates matter:
On a €200,000 mortgage over 30 years:
- Local Authority Home Loan at 2.55%: €789/mo — total interest: €84,040
- Commercial lender at 3.25%: €870/mo — total interest: €113,200
- Saving vs commercial: ~€81/mo, ~€29,160 over the full term
On a €288,000 mortgage (maximum in high-demand areas) over 30 years:
- LAHL at 2.55%: €1,136/mo
- Commercial at 3.25%: €1,253/mo
- Saving: ~€117/mo, ~€42,000 over 30 years
The rate is fixed for the full term of the mortgage — not just 2, 3, or 5 years. That’s a meaningful difference from commercial fixed rates which expire and typically revert to higher variable rates.
Who Is Eligible?
To qualify for the Local Authority Home Loan, you must meet all of the following:
Buyer status:
- You must be a first-time buyer — you cannot have previously owned residential property in Ireland or abroad
- If buying as a couple, all borrowers must be first-time buyers
Income limits:
- Single applicant: gross income must be €70,000 or less
- Joint applicants: combined gross income must be €85,000 or less
Previous lending:
- You must have been refused a mortgage, or received insufficient offers, from two regulated lenders (e.g. two banks)
- You must provide evidence of these refusals (letters from lenders)
Property:
- The property must be in the Republic of Ireland
- The property must be your principal private residence — you must intend to live there
- The property must meet the scheme’s value thresholds (see below)
Age:
- Applicants must be 18 or older
- Maximum age at end of mortgage term is typically 70
How Much Can You Borrow?
The maximum loan amount depends on where in Ireland the property is located:
| Area | Maximum loan |
|---|---|
| Dublin, Cork, Galway, Kildare, Meath, Wicklow, Louth | €288,000 |
| Rest of Ireland | €250,000 |
The loan covers up to 90% of the market value of the property — meaning you still need a minimum 10% deposit (same as the Central Bank requirement for first-time buyers).
There is also a property value cap:
- High-demand areas (Dublin etc.): €360,000 maximum purchase price
- Rest of Ireland: €310,000 maximum purchase price
If you need to buy above these thresholds, the Local Authority Home Loan is not available — you would need a commercial mortgage.
What Properties Qualify?
| Property type | Eligible? |
|---|---|
| New build | ✅ Yes |
| Second-hand property | ✅ Yes |
| Self-build | ✅ Yes (conditions apply) |
| Investment property | ❌ No |
| Holiday home | ❌ No |
| Apartment off-plan | ✅ Yes |
Unlike Help to Buy and the First Home Scheme — which are restricted to new builds — the Local Authority Home Loan applies to both new and second-hand properties. This is a significant advantage for buyers in areas where new builds are scarce or priced above the cap.
How Does It Compare to Commercial Mortgages?
| Feature | Local Authority Home Loan | Commercial mortgage |
|---|---|---|
| Rate | 2.50–2.55% (fixed for full term) | 3.10–3.45% (fixed for 2–10 years) |
| Income cap | €70,000 single / €85,000 joint | No cap |
| Eligibility | Refused by 2 banks | Open to all qualifying buyers |
| Property types | New and second-hand | New and second-hand |
| Property value cap | €310,000–€360,000 | None (subject to LTI limits) |
| Maximum loan | €250,000–€288,000 | No hard max (subject to income) |
| Rate lock | Full term | 2–10 years, then reverts |
The key trade-off: the income cap and maximum loan amount mean LAHL doesn’t suit higher earners or buyers in premium markets. But for buyers earning under €85,000 combined and buying within the price caps — particularly in towns and cities outside Dublin — it can be the cheapest mortgage available.
Can I Combine LAHL with Help to Buy or the First Home Scheme?
Help to Buy + LAHL: Yes, you can use Help to Buy alongside the Local Authority Home Loan on a qualifying new-build property. The HTB refund (up to €30,000) reduces the cash deposit you need to fund, while the LAHL provides the mortgage at the discounted rate.
First Home Scheme + LAHL: The First Home Scheme is generally not designed to be combined with the Local Authority Home Loan, as both are government equity/lending products. Check with your local authority for the current position.
How to Apply
Applications for the Local Authority Home Loan are made to the local authority where you intend to buy — not to a bank.
Step 1: Check eligibility Confirm you meet the income limits and that the property you’re considering is within the purchase price cap for your area.
Step 2: Get refused by two commercial lenders You need evidence of two mortgage refusals or inadequate offers. Apply to two banks first and document the outcome. Letters from lenders confirming refusal or insufficient offers are required.
Step 3: Gather your documents You’ll typically need:
- Proof of identity (passport or driving licence)
- Proof of address (utility bill, bank statement)
- 6 months recent bank statements
- Recent payslips / P60 (or 2 years accounts if self-employed)
- Evidence of deposit savings
- Lender refusal letters
- Property details (sale-agreed letter, contracts, or planning permission for self-builds)
Step 4: Submit your application Applications are submitted to the local authority housing department. Forms are available from the local authority directly or from the Housing Agency website.
Step 5: Assessment and approval The local authority assesses your application, typically within 4–8 weeks. If approved, you receive an approval letter which you can use to progress the property purchase.
Step 6: Drawdown Drawdown happens at closing, coordinated between the local authority and your solicitor.
Which Local Authority Do I Apply To?
You apply to the local authority in whose administrative area the property is located — not where you currently live.
- Dublin City: Dublin City Council
- Fingal, South Dublin, Dún Laoghaire-Rathdown: Respective county councils
- Cork City / County: Cork City Council or Cork County Council
- Galway City / County: Galway City Council or Galway County Council
- All other areas: Your relevant county or city council
Contact details for all local authorities are available at gov.ie.
Common Questions
Do I need to be rejected by two banks first? Yes. Evidence of two refusals (or insufficient offers) from regulated Irish lenders is a mandatory requirement. If you’ve only approached one bank, you need to try a second before applying to the local authority.
What counts as “insufficient offer”? If a bank offers you a smaller mortgage than you need to purchase the property — for example, you need €220,000 but are only approved for €160,000 — this can qualify as an insufficient offer. Get it in writing.
Is the Local Authority Home Loan available in all areas? Yes, every local authority in Ireland participates in the scheme, though the maximum loan and property value caps differ between high-demand and other areas.
Can I overpay the Local Authority Home Loan? Yes, overpayments are permitted. Contact your local authority housing department for details of how overpayments are applied.
What happens if I want to sell before the mortgage is paid off? You can sell at any time. The outstanding loan balance is repaid from the sale proceeds, the same as a commercial mortgage.
Is the Local Authority Home Loan available for investment properties? No. The property must be your principal private residence.
Can a non-Irish national apply? Yes, provided you meet all other eligibility criteria. There is no citizenship requirement — residency and intention to use the property as your principal home are what matter.
Local Authority Home Loan vs Help to Buy vs First Home Scheme
| Scheme | What it gives you | Property type | Income cap |
|---|---|---|---|
| Local Authority Home Loan | Below-market mortgage rate | New + second-hand | €70K/€85K |
| Help to Buy | Tax refund up to €30,000 | New build only | None |
| First Home Scheme | Government equity stake (up to 30–40%) | New build only | Yes |
All three can potentially be used by the same buyer on a new-build purchase (subject to eligibility checks). In that scenario: HTB reduces your deposit gap, the First Home Scheme bridges the affordability gap, and the LAHL provides a cheaper mortgage rate than any bank.
This article is for information purposes only and does not constitute financial advice. Eligibility conditions and rates are subject to change — always verify current details directly with your local authority or the Housing Finance Agency.