Chapter 2 of 10 · Schemes and grants · 10 of 14
The Local Authority Home Loan: the council mortgage explained
Checked 21 Oct 2026the Central Bank's mortgage measures, Revenue's rules and the scheme operators' published terms.
The council mortgage for buyers refused by two lenders: €80,000 income limit, county price ceilings from 1 April 2026, rates and how to apply.
Written in plain English for the person buying, selling or switching. This guide covers the Republic of Ireland only.
The Local Authority Home Loan is a mortgage from your county or city council. It is for people on ordinary incomes who cannot get a big enough mortgage from a bank. The rate is fixed for the whole term, so the repayment never changes.
This guide covers who qualifies, the income limits, the price ceilings, the rates, the two-refusals rule and how to apply. The Local Authority Home Loan calculator works out your own figures.
A worked example first
Fiona earns €58,000. She is a first-time buyer in County Cork. Two lenders turned her down for the amount she needs. She finds a house for €300,000, within the Cork ceiling of €375,000.
- The most the council lends is 90% of the price: €270,000.
- Her deposit is 10%: €30,000.
- Over 25 years at 4.00%, the repayment is about €1,425 a month.
- Over 30 years at 4.05%, the repayment is about €1,297 a month.
Those are the loan's own fixed rates. Nothing else changes them for the life of the loan.
Who qualifies
You must meet all of these:
- A first-time buyer, or a Fresh Start applicant. Fresh Start covers people who are separated or divorced, or who have been through insolvency, and have no interest in a home now.
- Gross income within the limit. Gross income is pay before tax. The limit is €80,000 for one applicant and €85,000 for a joint application.
- Refused a mortgage, or offered less than you need, by two regulated lenders. A broker's letter covering both is accepted.
- Aged 18 to 70.
- A right to live and work in the State.
- Buying or building a home within the price ceiling for your council, to live in as your home.
The income limits rose on 1 April 2026. Before that, a single applicant's limit was €70,000. The joint limit stayed at €85,000. The changes page tracks future changes.
The price ceilings by county
The ceiling is the most the home can cost. The council does not lend on a home above it. The ceilings from 1 April 2026 are in four bands.
| County | Ceiling |
|---|---|
| Dublin | €415,000 |
| Kildare | €415,000 |
| Wicklow | €415,000 |
| Cork | €375,000 |
| Galway | €375,000 |
| Meath | €375,000 |
| Clare | €345,000 |
| Limerick | €345,000 |
| Louth | €345,000 |
| Waterford | €345,000 |
| Westmeath | €345,000 |
| Carlow | €310,000 (to confirm) |
| Cavan | €310,000 (to confirm) |
| Donegal | €310,000 (to confirm) |
| Kerry | €310,000 (to confirm) |
| Kilkenny | €310,000 (to confirm) |
| Laois | €310,000 (to confirm) |
| Leitrim | €310,000 (to confirm) |
| Longford | €310,000 (to confirm) |
| Mayo | €310,000 (to confirm) |
| Monaghan | €310,000 (to confirm) |
| Offaly | €310,000 (to confirm) |
| Roscommon | €310,000 (to confirm) |
| Sligo | €310,000 (to confirm) |
| Tipperary | €310,000 (to confirm) |
| Wexford | €310,000 (to confirm) |
The named bands come from the 2026 guidance note and the gov.ie release. The counties marked "to confirm" sit in the band the note's wording suggests, and have not yet been confirmed one by one. Ask your council for its figure before you rely on it. Each county page carries the ceiling too.
The ceiling is not the same as the First Home Scheme's ceiling, which is higher. The First Home Scheme price ceilings are a separate table.
The rates
The loan is fixed for its whole term. That means the rate, and the monthly repayment, stay the same from the first month to the last.
| Term | Rate | APRC |
|---|---|---|
| Up to 25 years | 4.00% | 4.07% |
| Up to 30 years | 4.05% | 4.13% |
APRC is the annual percentage rate of charge: the rate with the loan's costs included, used to compare loans. The rates page on the scheme's site is undated. Check it before you apply.
For comparison, the Central Bank's average rate on new mortgages was 3.53% in August 2026. The council loan's rate is a little above that average. The difference is the term: a bank fixed rate runs for a set number of years and then ends, while the council's rate runs for the whole loan. The mortgage rates comparison shows the bank rates.
How much you can borrow
The council lends up to 90% of the price. You need a 10% deposit from savings, a gift, or Help to Buy on a new build. Ask your council whether Help to Buy can form part of your deposit on the home you have in mind.
The council also checks that you can afford the repayment. It looks at your income, your outgoings and your credit history. A council can lend less than 90% if it judges the repayment too high for your income.
The Central Bank's 4 times income rule applies to banks. The council applies its own affordability test. Ask your council for the most it would lend on your income before you go house hunting.
The two-refusals rule
You must show that two regulated lenders have refused you a mortgage, or offered you less than you need. A regulated lender is a bank or other lender on the Central Bank's register.
The proof is a letter from each lender. A broker (on the Central Bank's register) can give one letter covering two lenders. A mortgage advisor is the usual route, because they can approach two lenders at once.
The letters need to be recent. Councils set their own limit on how old a letter can be. Get them when you are ready to apply, not months before.
Mortgage protection insurance
You must take out the council's own mortgage protection insurance. This is a life policy that pays off the loan if you die. The Consumer Credit Act 1995, section 126, requires mortgage protection on every home loan. The council runs its own group scheme and its cost is added to the repayment. Ask your council for the current cost when you apply.
How to apply
- Check your income against the limit and the home against the ceiling.
- Get your two refusal letters, or one broker's letter covering two lenders.
- Download the application form from the scheme's site or your council's site.
- Gather the documents: photo ID, proof of address, payslips and a salary certificate, bank statements, proof of your deposit, tax documents, and the refusal letters.
- Send the form and documents to your council's housing loans section.
- The council assesses it and sends a decision in writing.
- If approved, you get an approval in principle. Approval in principle is the council's estimate of what it would lend, valid for a set time.
- Find a home, go sale agreed, and send the council the details.
- The council values the home and issues a loan offer.
- Your solicitor (check the Law Society's register) does the legal work. A conveyancing solicitor handles the contracts and the closing.
The waiting
Councils handle applications in order. A complete application moves faster than one with missing documents. Some councils publish their current time to a decision; others tell you when you apply.
An approval in principle has a time limit. If you have not found a home before it runs out, you can apply to renew it. Ask about the limit when you get the approval.
Self-builds and new builds
The loan covers a home you build yourself, within the ceiling. The council values the finished home. It also covers new builds from a developer. Help to Buy applies to both, subject to its own rules. The Help to Buy guide explains them.
Where this leaves you
Put your income, your county and a price into the Local Authority Home Loan calculator to see the limit, the ceiling and the repayment at both fixed rates. The first-time buyer journey shows the steps around it. For the two refusal letters, get quotes from a broker, and for the legal work, from a solicitor.
Questions people ask
Who qualifies for the Local Authority Home Loan?
A first-time buyer or Fresh Start applicant aged 18 to 70, with gross income up to €80,000 alone or €85,000 as a couple, who has been refused a mortgage or offered too little by two lenders. The home must be within the county's price ceiling.
What is the interest rate on the Local Authority Home Loan?
4.00% fixed for the whole term on a loan up to 25 years, and 4.05% fixed for the whole term on a loan up to 30 years. The rate never changes over the life of the loan. The rates page on the scheme's site is undated, so check it before you apply.
How much can I borrow with the Local Authority Home Loan?
Up to 90% of the price, within your county's ceiling, and within what the council judges you can repay. The ceilings run from €310,000 to €415,000. You need a 10% deposit.
Do I need two mortgage refusals for the council loan?
Yes. You need to show that two regulated lenders refused you, or offered less than you need. A letter from a mortgage broker covering two lenders is accepted.
How long does a Local Authority Home Loan take?
Councils give their own timescales. Allow several weeks from a complete application to a decision, and longer if documents are missing. Ask your council for its current time when you apply.