According to reports this morning the Government plan on giving first-time homebuyers an income tax refund which would in turn act as a deposit for their mortgage.
Government sources say the refund grant will range between €5,000 and €15,000, and will be based on the property value instead of the applicant’s earnings.
It is also believed that the mortgage applicant will receive the payment in one lump sum, which would then be required to be deposited to the lending bank in question in order to meet the Central Bank requirements.
Current Central Bank rules state that all first-time buyers have to submit a deposit of 10% on the first €220,000 of the price of a home and 20% on the remainder.
However it is widely expected there will be a upper cap implemented to rule out over borrowing. Although scheme is being finalised it is expected the cap in the region of €350,000-€380,000.