Local Authority Home Loan 2026 — New Limits and How to Qualify
The Local Authority Home Loan (LAHL) offers first-time buyers a government-backed mortgage at 3.55% fixed for up to 30 years. From April 2026, income and property price limits have been increased, making it accessible to more buyers than ever.
What Is the Local Authority Home Loan?
The LAHL is a government mortgage scheme for first-time buyers who have been refused a mortgage from two banks or building societies, or who were only offered insufficient amounts. It’s provided through your local county council at a fixed interest rate for the entire term — making it unique among Irish mortgage products.
The rate is currently 3.55% for terms up to 25 years and 3.8% for 25–30 year terms. Unlike bank rates, these are genuinely fixed for the full term — no nasty surprises when a fixed period ends.
April 2026 Income and Price Limits
The government increased the limits in April 2026 to reflect rising property prices:
| Area | Single Applicant Income | Joint Applicant Income | Property Price Limit |
|---|---|---|---|
| Dublin, Kildare, Wicklow, Meath, Louth, Cork City | €75,000 | €85,000 | €450,000 |
| Galway, Limerick, Waterford cities | €70,000 | €80,000 | €400,000 |
| Rest of Ireland | €65,000 | €75,000 | €350,000 |
How Much Can You Borrow?
The maximum loan is 90% of the property price (you need a 10% deposit). The mortgage amount is capped at the lesser of 90% of purchase price or 90% of market value. Maximum term is 30 years.
Monthly repayments are typically lower than bank mortgages because the rate is genuinely fixed. For a €300,000 loan over 30 years at 3.8%, the monthly repayment is approximately €1,398.
Stacking with Help to Buy and First Home Scheme
The LAHL can be combined with both the Help to Buy Scheme (up to €30,000 tax refund on new builds) and the First Home Scheme (state equity share). This triple stack is the most powerful combination available to first-time buyers in Ireland.
For example: €350,000 new build home, €315,000 LAHL mortgage, €30,000 Help to Buy refund covering most of the deposit, and the First Home Scheme covering any gap. Your actual cash outlay could be as low as €5,000–€10,000.
Eligibility Requirements
- First-time buyer (never owned a home before, worldwide)
- Aged 18–70 at application
- Income at or below the limits for your area
- Refused or offered insufficient mortgage from two regulated lenders
- Not in arrears on any loan, credit card, or utility bill
- Must occupy the property as your principal private residence
- Property must meet minimum standards and have a valid BER cert
One thing people miss: you’ll need a BER assessment from Homerating.ie as part of the application. If you’re buying a home that needs energy upgrades, check HomeEnergyGuide.ie for SEAI grant eligibility.
Application Process
- Get refused by two lenders — keep the refusal letters
- Check eligibility using our LAHL Calculator
- Contact your local authority housing department to express interest
- Submit the application with refusal letters, payslips, bank statements, and tax documents
- Attend the interview — most councils require a face-to-face meeting
- Receive approval in principle — typically 6–10 weeks
- Find your property and complete the purchase through a solicitor
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