Local Authority Home Loan 2026 — Fixed-rate government mortgage
Local Authority Home Loan in Ireland 2026
The Local Authority Home Loan is a government-backed fixed-rate mortgage for first-time buyers who cannot get sufficient financing from commercial banks. Income limits: €70,000 single, €85,000 combined. Up to 90% loan-to-value. Rate fixed for the full 25 or 30 year term. Can be combined with Help to Buy and the First Home Scheme. This is the complete 2026 guide.
Local Authority Home Loan 2026 — Key figures
- Single income limit
- €70,000 gross/year
- Couple income limit
- €85,000 combined gross/year
- Rate (25-year term)
- Approx. 4.00% fixed
- Rate (30-year term)
- Approx. 4.05% fixed
- Maximum LTV
- 90% (min. 10% deposit)
- Commercial refusals needed
- 2 (refusal or insufficient offer)
Eligibility decision tree
- Are you a first-time buyer or qualifying fresh start applicant?
Yes → continue No → not eligible. - Is your gross income under €70,000 (single) or €85,000 combined (couple)?
Yes → continue No → not eligible for LAHL. Consider commercial mortgage or First Home Scheme only. - Have you been refused a mortgage or offered insufficient funds by at least 2 commercial lenders?
Yes → continue No → apply to 2 commercial lenders first. You need written evidence of refusal or insufficient offer. - Is the property within the regional price ceiling for your area? (€500,000 Dublin; €450,000 Cork/Galway city; €400,000 elsewhere)
Yes → continue No → property too expensive for LAHL. - Do you have at least a 10% deposit? (Can include Help to Buy)
Yes → you likely qualify. Apply at localauthorityhomeloan.ie No → consider Help to Buy scheme for up to €30,000 deposit, or save the remaining difference.
Property price ceilings by region
| Region | Maximum property price | Counties included |
|---|---|---|
| Dublin area | €500,000 | Dublin City, Dún Laoghaire-Rathdown, South Dublin, Fingal, Wicklow, Kildare, Meath |
| Cork and Galway cities | €450,000 | Cork City, Galway City |
| All other areas | €400,000 | All remaining counties |
Worked examples — monthly repayment estimates
Example 1 — Single person, €300,000 property, 30-year term
- Property price: €300,000
- Deposit (10%): €30,000 (e.g. €25,000 Help to Buy + €5,000 savings)
- Loan amount: €270,000
- Rate: 4.05% fixed for 30 years
- Estimated monthly repayment: approx. €1,298/month
- Total cost over 30 years: approx. €467,000 (including interest)
Gross income requirement: under €70,000/year. At typical €50,000 income, this repayment is approx. 31% of gross monthly — within normal affordability range.
Example 2 — Couple, €380,000 property in Dublin, 30-year term, using Help to Buy
- Property price: €380,000 (new build)
- Help to Buy: €30,000 (Revenue refund, paid directly to solicitor)
- Additional savings: €8,000
- Total deposit: €38,000 (10% of purchase price)
- Loan amount: €342,000
- Rate: 4.05% fixed for 30 years
- Estimated monthly repayment: approx. €1,647/month
Combined income must be under €85,000. Both applicants must be first-time buyers. Property must qualify for Help to Buy (new build).
Example 3 — LAHL + Help to Buy + First Home Scheme combined
- Property price: €420,000 (new build, Dublin area)
- Help to Buy (Revenue): €30,000
- First Home Scheme equity (10%): €42,000
- Personal savings: €0
- Total deposit: €72,000 (17% — exceeds 10% minimum)
- LAHL loan required: €348,000
- Monthly repayment (30yr, 4.05%): approx. €1,676/month
- FHS service charge (from year 6 on €42k equity): 1.75% → approx. €735/year
Application walkthrough
- Get refused by two commercial lenders
Apply to at least two commercial banks or credit unions and get written evidence of refusal or an offer that is insufficient for the purchase you need. Keep all letters and correspondence — you will need these for your LAHL application.
- Prepare your documents
You will need: letter(s) of refusal or insufficient offer from two commercial lenders; 3 months’ payslips (employed) or 2 years’ Revenue assessments and accounts (self-employed); 6 months’ bank statements; proof of savings/deposit; signed booking agreement or sale agreed notice from the vendor; Government photo ID; proof of address; PPS numbers.
- Apply at localauthorityhomeloan.ie
Complete the online application at localauthorityhomeloan.ie. Select the local authority where the property is located. Upload your documents. An application fee may apply.
- Assessment and credit check
Your local authority credit committee assesses your application. They will perform a credit check and assess affordability. Processing typically takes 8–12 weeks. You may be asked for additional information.
- Loan approval and drawdown
If approved, you receive a formal loan offer. Your solicitor coordinates the drawdown with your local authority at the time of closing. The funds are paid to the vendor’s solicitor on the closing date.
Required documents checklist
- Written refusal or insufficient offer from two commercial lenders
- 3 months’ payslips (employed) or 2 years’ accounts + Revenue Notice of Assessment (self-employed)
- 6 months’ bank statements for all accounts
- Evidence of deposit/savings (matching bank statements)
- Signed booking agreement or sale agreed letter from vendor/estate agent
- Government-issued photo ID (passport or driving licence)
- Proof of current address (utility bill or bank statement, not more than 3 months old)
- PPS numbers for all applicants
- Evidence of Help to Buy approval (if using HTB)
Reasons applications are refused
| Reason | What to do |
|---|---|
| Income exceeds the limit (€70k single / €85k couple) | Consider commercial mortgage with First Home Scheme instead. LAHL income limits are strict. |
| Not a first-time buyer (and not a qualifying fresh start) | Confirm your fresh start status if applicable. Contact your local authority for guidance. |
| Fewer than two commercial refusals provided | Apply to a second commercial lender and obtain written evidence. Must be two separate lenders. |
| Property above the regional price ceiling | Consider a lower-priced property or a different area. Price ceiling limits are firm. |
| Insufficient deposit / savings | Use Help to Buy to supplement deposit. Consider First Home Scheme to reduce loan required. |
| Poor credit history | Review your credit report at centralcreditregister.ie. Address any issues before reapplying. |
| Affordability concern | Consider a longer term (30 years) or a lower purchase price to reduce monthly repayment. |
Frequently asked questions
- You must apply to two commercial lenders first — the LAHL is not a first-resort product, it is for those refused or under-offered by the private market.
- The income limits are gross, not net — €70,000 for single, €85,000 for couple, assessed before tax deductions.
- The fixed rate is fixed for the entire mortgage term (25 or 30 years), not just a fixed period — your repayment never changes.
- The LAHL is administered by your local authority, not a bank — apply at localauthorityhomeloan.ie or through your county/city council.
- LAHL can be combined with Help to Buy and First Home Scheme — using all three together maximises affordability for new builds.
- The 10% deposit can come from Help to Buy — you don’t need 10% in personal savings if the HTB refund covers the deposit requirement.
This page was reviewed against official localauthorityhomeloan.ie and Gov.ie guidance. LAHL 2026: income limits €70,000 (single) / €85,000 (couple), 90% LTV, fixed rate for full term, requires two commercial refusals, apply at localauthorityhomeloan.ie.
Information Accuracy — This guide has been independently researched and reviewed using official Irish government sources available on the publication date. Government schemes, payment rates, eligibility rules and legislation may change over time. Before making financial, legal or welfare decisions, always confirm the latest information directly with the relevant Irish authority.