Dublin City Council home mortgage income threshold set to rise this April
The income threshold for getting a home loan from Dublin City Council is set to increase to €80,000 this April.
The Local Authority Home Loan supports buyers who cannot get funding from commercial banks. While the income limit for couples remains at €85,000, the threshold for single applicants is set to rise from €70,000. Additionally, the maximum house price eligible for the loan will increase from €360,000 to €415,000.
In a presentation delivered to representatives at last week’s Finance SPC meeting, Administrative Officer Deirdre Cahill outlined details of the loan, which is a response to government policy of promoting home ownership for those who closed off from traditional means. At the end of February 2026, Dublin City Council’s loan book consisted of 2,049 loans with a total value of €205m.
The eligibility criteria for gaining a loan from the council is to be a first time buyer of between 18 and 70 years of age. Applicants must be in continuous employment for a minimum of two years, as the primary earner or be in continuous employment for a minimum of one year, as a secondary earner.
The loan must be for the recipient's normal place of residence and they can borrow up to 90% of the cost with a 10% deposit. The Local Authority Home Loan offers two fixed interest rate products: 4.00% fixed for up to 25 years (APR 4.07%) and 4.05% fixed for up to 30 years (APR 4.13%).
At the end of February 2026, 445 loans were in arrears with a value of €5.9m. However, Ms Cahill explained there are systems in place to help those who fall behind in their payments. The Mortgage Support Unit functions to address borrowers experiencing difficulties, who are engaged through the Mortgage Arrears Resolution Process (MARP).
MARP was implemented in 2012 and offers solutions like interest only payments for a period of six months, capitalisation of arrears, and extending the loan. They can also change the type of mortgage from shared ownership to annuity.
In serious cases, the Local Authority Mortgage to Rent (LAMTR) scheme, which was introduced in 2014, is utilised. This is a government initiative to assist homeowners who have fallen into arrears and are at risk of losing their home.
The scheme allows local authorities to purchase the home at market value while allowing the tenant to remain living there. Ms Cahill described the scheme as a “win-win situation” for addressing unsustainable rent arrears. Since its introduction 312 unsustainable mortgages have gone through the LAMTR process and are now tenants of Dublin City Council .
While the council has nearly €6m owed in arrears, Ms Cahill most of these come from “legacy arrears” and that they are happy with the rate of repayment. She said if it were not for legacy arrears they would have near 100% collection rate, but taking everything into consideration the figure is approximately 75%.
Potential applicants can find more information and learn how much they can borrow by using the home loan calculator on www.localauthorityhomeloan.ie .
This content is funded by the Local Democracy Reporting Scheme