Intro Text 

What is the Mortgage Allowance Scheme?

The Mortgage Allowance Scheme is a social housing option which assists tenants and tenant purchasers of local authority dwellings, who wish to return their dwellings to the authority and purchase or build a private dwelling for their own occupation.  It does this by reducing their mortgage repayments over the first five years of their mortgage. 

Mortgage Allowance Scheme

The amount of the allowance is €11,450 payable over five years.  The allowance is paid directly to the lending agency and results in your mortgage repayments in the first five years being reduced by the relevant annual amount of the allowance, i.e. 

  • €3,560 in the 1st year
  • €2,800 in the 2nd year
  • €2,040 in the 3rd year
  • €1,780 in the 4th year
  • €1,270 in the 5th year

The allowance paid in any year cannot exceed the amount of the mortgage repayments, and the applicant must continue to occupy the private dwelling as his/her normal place of residence throughout the 5-year period to which the allowance relates.

Who is eligible to avail of this scheme:

If you are:

  1. A tenant of a local authority house, or a tenant purchaser, and wish to buy a private house or build your own house and return your present house to the local authority, or
  2.  A tenant of a house for more than 1 year provided by a voluntary body under the Rental Subsidy Scheme, who wishes to buy a private house or build your own and return your present house to the voluntary body.

You may apply to avail of this scheme.

How do I apply?

Application forms are available from the Local Authority and are processed by the Local Authority.  Provisional approval is issued first by the Local Authority in the form of a letter of intent.   If the Local Authority is the lender, they forward the forms to the Department of Housing, Planning and Local Government. If an outside agency is the lender, a certificate of approval issued by the local authority is given to the lending agency for them to forward to Department of Housing, Planning and Local Government.

 

Back