House Purchase Loan

The House Purchase Loan is a home loan available to First Time Buyers. It is granted to eligible applicants for the construction or purchase of new or second hand homes. 

Applying for a House Purchase Loan

  • Print the House Purchase Loan Application Form (Word, 510Kb) and complete it.
  • A list of the supporting documentation to be submitted with it, is on page 2 of the application form.
  • Alternatively, House Purchase Loan application forms are available from the Housing Section, Cavan County Council.

 

Please note that original documentation is required to be submitted with the application, including the presentation of photographic identification in the form of a current passport or drivers licence.

Fees

  • An application fee of €25 is required. This is non-refundable.
  • If a loan is approved, the Borrower will be responsible for all legal costs, except for the legal investigation of title for which the Council is responsible.

Please note that all buyers including first time buyers are liable to the payment of stamp duty on the purchase of a house.

Eligibility

To be eligible to apply for a House Purchase Loan the applicant must be:

  • A first time buyer (exceptions may be made for legally separated or divorced applicants).
  • Earning less than €50,000 in the case of a single applicant or €75,000 in the case of joint applicants.
  • In continuous employment for at least two years in the case of the main applicant; in the case of the second applicant, in order for their income to be reckonable they must have at least one year’s continuous employment.
  • Aged between 18 and 70 years i.e. the loan term must cease by the time the borrower reaches the age of 70.

Key Criteria

  • Applicants must provide evidence that they have sought a mortgage from two other lenders. These can be either banks or building societies. Written refusal letters must be submitted and these letters must be of a recent date.
  • The maximum loan amount that may be advanced is €220,000.
  • The maximum loan term is 30 years.
  • The maximum loan to value (LTV) is 97%.
  • The property can be new (including self-build) or second-hand and must be situated in County Cavan.
  • The applicant(s) must occupy the property as their normal place of residence.
  • The property must have a gross internal floor area of 175 sq. metres or less, be in good condition and have good marketable title.
  • A good credit history is required and a credit check will be carried out.
  • Applicants must have a deposit of at least 3%. Statements showing a proven track record of savings for a period of at least 12 months must be submitted.
  • In the case of a joint application, neither applicant can be a current owner of a property.
  • The loan is repaid at a variable interest rate at monthly intervals. The payment rates may be adjusted by the lender from time to time.
  • All loans are advanced based on the applicant’s ability to repay, using net income ratio calculations. Repayments should not exceed 35% of net income.