The Allowance

An allowance of up to €11,428 is paid over the first five years of your mortgage. Those eligible below must be willing to buy a private house and return their present one to the local authority:

• A tenant or tenant purchaser
• A tenant of more than one year of a house provided by a voluntary body under the Rental Subsidy Scheme.

To qualify

You must have a mortgage of at least €38,092 and the house being purchased or built must be suitable to your needs, meet certain standards and be acceptable to the local authority.
You may also qualify for the €3,809 new house grant and a low cost site.

How is the allowance paid?

The allowance is paid directly to the lending agency, reducing your annual repayments by the following amounts:
Year 1 - €3,560
Year 2 - €2,800
Year 3 - €2,040
Year 4 - €1,780
Year 5 - €1,270

The allowance paid in any year cannot exceed the amount of the mortgage repayments. If for instance your mortgage repayments in the 2nd year came to €2,539 then the allowance would be €2,539

Most people will find they still have mortgage repayments to make each month, but that the mortgage allowance reduces these.