State-backed mortgages expanded as price ceilings rise to €415,000 and single income limit increases to €80,000
Changes to Local Authority loans aimed at widening access to home ownership in higher-priced markets
19 February 2026 | 📧 editor@ipropertyradio.com
The Government has announced significant changes to the Local Authority Home Loan and the Local Authority Purchase and Renovation Loan, increasing maximum property price limits and raising the income threshold for single applicants.
The revised measures, confirmed by Housing Minister James Browne, will take effect in the second quarter of 2026. They are designed to reflect current market prices and expand eligibility for State-backed mortgages.
Under the changes, the maximum property price that can be financed through the schemes will rise across all local authority areas.
In Dublin local authorities, as well as Kildare and Wicklow, the ceiling will increase from €360,000 to €415,000. In Galway City, Cork City, Meath and Cork County, the limit will rise from €330,000 to €375,000.
In Clare, Kilkenny, Limerick, Waterford, Westmeath and Wexford, the cap will increase from €300,000 to €345,000. Galway County and Louth will also move to €345,000, up from €330,000. In Carlow, Cavan, Donegal, Kerry, Laois, Leitrim, Longford, Mayo, Monaghan, Offaly, Roscommon, Sligo and Tipperary, the maximum price will rise from €275,000 to €310,000.
The gross income limit for single applicants will increase from €70,000 to €80,000 nationwide. The joint applicant limit remains unchanged at €85,000.
The Local Authority Home Loan, launched in January 2022, provides fixed-rate mortgages to creditworthy first-time buyers and “fresh start” applicants who cannot secure sufficient finance from commercial lenders. Since February 2018, more than 4,300 buyers have purchased homes through the scheme and its predecessor, the Rebuilding Ireland Home Loan.
The loan offers two fixed-rate products: 4.00% fixed for up to 25 years, with an APR of 4.07%, and 4.05% fixed for up to 30 years, with an APR of 4.13%.
The Local Authority Purchase and Renovation Loan, introduced in July 2024, supports buyers purchasing and refurbishing vacant or derelict properties eligible for the Vacant Property Refurbishment Grant. It offers the same fixed rates, alongside a two-year variable bridging loan at 3.50% (APR 3.56%).
The bridging loan corresponds to the value of the Vacant Property Refurbishment Grant and must be repaid once the grant is paid or within two years, whichever occurs first. The combined total of the main mortgage and the bridging loan cannot exceed the maximum borrowing limit.
The Department said the revised thresholds are intended to ensure the schemes remain aligned with market conditions and continue to support moderate-income households seeking to access sustainable home ownership.
