There is mixed reaction to the announcement by the Central Bank yesterday that the rules governing mortgage approval were being changed – effective January 2017.
While the Minister for Finance Michael Noonan, The Housing Agency, Limerick Auctioneers and Estate Agents and Countrywide and the Construction Federation welcome the alteration to the rules governing mortgage approval, Broker group PIBA are disappointed that the changes do not benefit non-first-time buyers.
At present, for a home costing €300,000 a first time buyer needs a deposit of €38,000.
When the new rules are put in place, a first time buyer should qualify for mortgage approval with a deposit of €30,000 saving them €8,000.00.
Should the buyer qualify for the Government’s Help-to-Buy scheme for new homes, they will get a tax rebate of €15,000.
However, new homes are in short supply so competition will be tight amongst first time buyers for the limited number of new homes for sale.
What exactly do the rule changes mean for first time buyers? Read more in the business section of independent.ie http://www.independent.ie/business/personal-finance/property-mortgages/all-you-need-to-know-about-the-rule-change-for-firsttime-buyers-and-how-its-expected-to-spark-building-surge-35240942.html