The Irish government has announced a new loan scheme to help people buy their first home.
The new scheme, which will be offered in April, will help first-time buyers who have the cash to repay a mortgage on their first-home purchase, as well as those who have a low deposit.
The scheme, called Instant Loan, will be available to all borrowers.
The aim is to help first time buyers buy a house with a down payment of under €600,000.
It will not apply to those who are already buying a house, or those who already own a property, but those with a low savings amount will be eligible.
The amount that can be borrowed depends on the age of the borrower and the age and income of the person buying the property.
A person with a deposit of less than €600 will be able to borrow up to €1,000 per week for the first six months of the scheme.
The average interest rate will be 6.5 per cent.
People who have taken out a loan will also be able take out an instalment loan of up to 50 per cent of the purchase price, or a loan of more than the purchase cost, whichever is higher.
This is to cover any cost over the initial deposit.
Mortgage companies are already charging borrowers a fee to cover the cost of buying a home.
There are restrictions to the amount that lenders can charge for the loan, however.
For instance, borrowers are only allowed to borrow less than 50 per the purchase value, or €500,000 for a loan to be guaranteed.
The minimum deposit for a mortgage will be limited to 10 per cent, and those who do not pay a minimum amount are subject to a penalty.
The rules for the loans are still being worked out.
There will be a cap on the amount of money that borrowers can borrow.
The Government will make sure that those who cannot afford the amount can borrow, but there are restrictions on who can borrow and how much they can borrow at any given time.
The current limit is €9,200 for a first-year mortgage and €10,800 for a second-year.
In a recent survey of Irish mortgage lenders, there were some who said that those with the lowest savings would be able borrow a total of €3,400 for a fixed rate mortgage, with a maximum of €50,000 available for a homebuyer with a minimum deposit of €1 million.
The other option for first-timers is to take out a second mortgage, which means they are allowed to pay more than €10 million on their deposit.
Interest rates are also capped at 6.25 per cent for a three-year loan.
The government has not made any announcement on the interest rate for the new mortgage scheme.
It is expected to be up and running by April next year.
It has also announced that it is going to set up a National Mortgage Guarantee Fund (NMFG), which will offer loans to people who can not afford a loan and who can make repayments on their mortgages.
The NMG will be run by the National Mortgage Bank.
It also announced the launch of a new national mortgage service, with an emphasis on those who want to buy their home in the first place.
The National Mortgage Insurance Scheme will provide the funding for mortgage insurance.
It covers all types of mortgages, including variable rates, variable duration and variable rate mortgages, as long as they are not over-subscribed.
This means that people who have not paid off their mortgage can be insured if they have a balance of more that €20,000 and are unable to afford a mortgage.
The money will be paid out in monthly instalments over a period of five years.
The NPIB will also provide loan insurance to anyone who is not eligible for an Irish National Mortgage, but who is willing to take on a mortgage through the National Housing Assistance Scheme (NHAS).
The NPIA is currently administered by the Central Bank.
However, it will soon have a new administrator.
This will be the National Planning Authority, and will have a staff of more people than the NPIA.
It currently has 1,300 staff.
The agency will also take on more staff to manage the National Finance and Management Agency (NFA) and its loan scheme, and also a new unit for planning and finance.
The New Finance Minister will now be in charge of all three agencies.
These new units will be tasked with managing the National Home Buyer Loan Scheme (NHBLS), the National Building Loan Scheme and the National Land Loan Scheme.
The three banks will also also work together on the National Asset Management Scheme.
There is also a planned increase in the number of loans for first home buyers.
It was announced last year that first-Home Buyers Grant (HAB) will be doubled, with funding being provided by the Government.
There has been some criticism that the HAB has not been sufficient to address the shortage of new homes