20% house-deposit rule to be delayed

20% house-deposit rule to be delayed

mortgage-title-003A new rule which would see home buyers forced to save 20% of a deposit before taking out a mortgage is to be delayed.

The rule was due to come into place on January 1, but now the Central Bank reportedly will not meet its own deadline to enforce the new measure.

It comes as the Oireachtas Finance Committee meets this morning to discuss mortgage insurance schemes and how they could work in Ireland.

The schemes, which would guarantee a portion of mortgages to first time buyers, would allow them to borrow more than 80% of the property price, as a third party would insure 10% of the price.

Senior counsel Ross Maguire, who is co-founder of New Beginning, said the insurance schemes would also protect homeowners if the property sells for less than they paid for it.

“As well as paying their mortgage, a person would also pay an insurance policy so that if the property is sold for less than the amount of the loan, the first 10% would be covered by the deposit and the second 10% by the insurance scheme,” he said.

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