Affordable Housing Scheme

Under the Local Authority Affordable Purchase Scheme, Cork City Council is helping people on moderate incomes to buy new homes at reduced prices. The Scheme is designed to help you bridge the gap between what you can afford to pay currently and the price of your new home.

Eligible applicants must purchase as much of their new home as they can, subject to the set minimum price of each house. Cork City Council will take a percentage equity share in your home equal to the difference between the open market value of the home and the reduced price you pay. For example, if a successful applicant purchases 85% of their home, Cork City Council will take a 15% equity interest in the property.

The Local Authority Affordable Purchase Scheme is primarily aimed at first-time buyers, with a few exceptions, and to be eligible you must show that you meet a number of requirements:

• You must be able to fund the purchase of your chosen property – you will need mortgage approval and a 10% deposit. Applicants who cannot show that they have access to sufficient finances to purchase a property will not qualify for the Scheme.
• Be over 18 years of age and have a right to reside indefinitely in the Republic of Ireland
• Be a First-Time Buyer or qualify under the Fresh Start principle*
• Income Limits apply to each scheme and house type
• You must purchase the property as your home
• You have not previously bought or built a property to live in (with the exception of Fresh Start applicants*)
• You cannot hold an interest in any another property
• You cannot have more accumulated savings than the money required to cover the deposit for the home and an additional €30,000. Anything above this is added to your purchasing power. And, if this goes above 95% of the market value of the property you are not eligible for the scheme.
• People who are married or in a civil partnership, or who are in a committed relationship and intend to reside in the home with their partner must apply jointly. Mortgage approval in Principle and Revenue’s Help to Buy (HTB) approval must also be in joint names.
• You will need to provide us with all the documents we need to assess your application. Incomplete applications cannot be assessed and will not be considered.
• The equity share amount that you require cannot be less than 5% of the value of your home. If you require less than 5% equity share, you will not be eligible for the scheme.
• *You may qualify if you are ‘Fresh Start’ applicant i.e. if you previously owned a home, but you no longer have a financial interest in it because you are now divorced, separated, or your relationship has ended, or you have gone through personal insolvency or bankruptcy. Please contact us at affordablehomes@corkcity.ie for more information.

You must be able to purchase your home with a mortgage and a minimum deposit of 10%.

• You will need to qualify for Mortgage Approval with a lender.
• You must borrow the maximum amount available to you (usually 4 times your gross household income).
• You have a minimum deposit of 10% of the purchase price
• While it is not a requirement, it is strongly recommended that applicants have their Mortgage Approval in Principle prior to applying for Affordable Housing.
• While you can apply for the scheme without mortgage approval, it is very important to note that you will be required to show mortgage approval when we start assessing your application. You should also be aware that Cork City Council may start the assessment of your application very shortly after you have submitted it.
• If you do not have mortgage approval when we are assessing your file, you will be required to submit it within 5 working days.
• In a very limited number of cases, applicants may not be able to avail of a mortgage of four times their gross household income. If you apply for the Scheme with a lower mortgage amount than we would expect based on your income, you will be required to provide Cork City Council with evidence that you cannot get a higher mortgage amount from your bank or financial institution. Applicants will be required to provide Cork City Council with the evidence the Council requires, in the format requested, within the timeframe given.
• Note that applicants cannot choose to avail of a lower mortgage than that which is available to them. You must apply for the Scheme with the maximum amount of mortgage you are entitled to.
• Some applicants with a higher income may also be eligible if their lender will not lend them four times their gross household income, or less than 85.5% of the market value of the property being applied for. Please note, evidence that an applicant cannot avail of a higher mortgage is required in the format requested by Cork City Council. Please contact affordablehomes@corkcity.ie for more information as to whether this exception may apply to you.
• You must provide Cork City Council with details of all your savings, on headed bank statements in your name, dated within the last three months. All savings details must be submitted with your application.

Please note that future /projected earnings / bonus etc cannot be taken into account in your application. Applicants must have sufficient finances in place at the time of assessment to show they can meet their purchase price.

• The purchase price you pay is calculated using your mortgage approval in principle and/or your financial ability to pay the minimum purchase price, whichever is greater.

• All Affordable properties advertised show a minimum and maximum purchase price, and the purchase price you will pay will be within this set price range.
• Applicants cannot choose to avail of the minimum purchase price - each applicant’s purchase price is determined in accordance with their gross household income and purchasing power.
• Applicants must apply with the following information:
  • Mortgage Approval in Principle, typically 4 times gross household income, plus,
  • Help to Buy if applicable, plus,
  • Savings information

Your purchase price is calculated as follows:

Mortgage approval amount, divided by 9, multiplied by 10.

If this amount is less than the minimum set price for your chosen property, you will pay the minimum purchase price.

• Applicants should confirm through the online portal application by self-declaration that they are a first-time buyer and/or Help to Buy approval, which is administered by Revenue Commissioners.
• If you are a first-time buyer, you should make a Help to Buy claim to Revenue. If you are eligible, your HTB claim will help you with the deposit you need to purchase your new home.
• Please also note that Local Property Tax ( LPT ) checks are conducted on all applicants.

No, the Local Authority Affordable Purchase Scheme and the First Home Scheme are both shared equity schemes but are different schemes to help you buy your home.  Purchasers cannot use the First Home Scheme with the Local Authority Affordable House Scheme

• The equity share is the percentage of the open market value the local authority will contribute to the purchase of your affordable home.
• Cork City Council will provide an affordable dwelling contribution towards the purchase of your home directly to the Developer.
• The amount provided will be the difference between the combined total of your maximum mortgage capacity, deposit and savings (where relevant) and the open market value of the home on the date you purchase it. This contribution will be expressed as a percentage and represents the equity share Cork City Council will retain in your home.
• You must buy back the local authority’s equity share in your home after 40 years. But, you can buy it back before then and you can make repayments at any time. You can buy back the full equity share in one payment or pay it back partially as you can afford to. However, the minimum repayment is €10,000.
• Certain events will automatically trigger the repayment of the equity share, these are known as ‘realisation events’. In general, the most typical case is when you sell your home. Other events when this may occur include, but are not limited to, bankruptcy, the property being subject to a Compulsory Purchase Order, or abandonment of the property, or in the event of the death of the homeowner(s).
• The equity share in your home is a percentage of the market value of your home. So, if property prices increase, the amount you have to pay back will increase. For example, if you bought your property in 2023 for €380,000 and Cork City Council provided equity of 20% or €76,000 and you want to buy back the equity share in 2025 when the property is valued at €400,000, you will have to pay 20% of this, which is €80,000.
• Purchasers will be required to sign ‘Affordable Dwelling Purchase Arrangement’ with Cork City Council. The Affordable Dwelling Purchase Arrangement is the legal agreement setting out the terms and conditions under which Cork City Council provides the Affordable Dwelling Contribution to you and that they will acquire an equity share in the property. This will be signed prior to the closing of the purchase of your affordable home.
• The Affordable Dwelling Purchase Agreement sets out how the affordable dwelling equity share can be redeemed by you as the homeowner and realised by Cork City Council. The agreement covers the obligations of you as the purchaser, and Cork City Council to each other and makes provision for the registration of the agreement with the Registry of Deeds/Land Registry. The agreement will also set out a valuation mechanism and when and how you, the homeowner, can make redemption

• Under the Scheme of Priority for Affordable Dwelling Purchase Arrangements where the number of eligible applicants exceeds the number of affordable dwellings for which applications are made, applications will be prioritised in line with the Cork City Council’s Scheme of Priority. A copy of this document is available in the Related Documentation Section.

Priority will be given on the following basis:

• Every Scheme will be advertised in a local paper, on our website, and on our social media pages.
• When the scheme is advertised, details of the date you can make your application on the online portal will be provided. The online portal will be open for at least three weeks, during which time you can make an application. You cannot make apply for a scheme once the online portal has been closed for new applications.
• All applications must be made on the Online Portal - there is no general application form or waiting list.
• Please note, you cannot register for the online portal in advance, you must register when the portal goes live on the date the portal opens.
• On the day the application portal opens, you will be required to register on the portal before you can proceed to application stage. You can then proceed to complete the online application form and upload the requested documentation.
• Supporting documentation is required when you make your application, and it is very important that you provide all the required information.
• Your application details and data submitted will only be retained for the development you apply for and will not be carried forward to any future affordable housing developments.
• You should only submit one application per affordable development. Multiple applications from the same applicant will not be considered. All information included as part of your application should be true as any false or misleading information may disqualify you.
• The following information is be required:
  • Personal details (e.g. name, date of birth, PPSN),
  • Confirmation that you are a First-Time buyer or that you qualify under the Fresh Start principle,
  • Evidence of the total gross annual income for your household for the preceding 12 months
  • Evidence of your 10% deposit and any savings, i.e., bank statements,
  • Evidence of your right to reside in the State,
  • Evidence of how you intend to finance the property, i.e., mortgage Approval –in Principle letter.

A checklist of all the documents required to apply is contained in the Related Documentation Section and should be read in conjunction with these FAQ’s.  Please note that only image type ­files can be uploaded on the portal, e.g. JPEG, PDF, PNG

• Applicants who submit incomplete applications will be contacted to request outstanding information and it is only when all the relevant information is received that your completed and submitted application will receive a date and time stamp.

It is the responsibility of each applicant to ensure that all required information and documentation is submitted at the time of application. Failure to do so could result in your application being deemed invalid.

Step 1: REGISTERING: Register with the online platform. You will need the following information: Your Full Name, a valid & active email address & a Mobile Phone Number. You will generate a registration verification number via text message, which you will enter to complete the set- up process.

Step 2: LOG ON: You will then be able to log on to the online platform to begin your application process. Again, as part of this login, you will generate a verification number via text message to your mobile device. You will then need to enter this six-digit code to log in.

Step 3: THE APPLICATION: You will be presented with 5 tabs. If you are a single applicant you will need to complete 4 tabs and if you are a joint applicant, five tabs will need to be completed.

Tab 1: Application

This tab will contain the general scheme information, such as scheme name, single or joint application, number of household members to reside in the house, type of property you are seeking etc.

Tab 2: Applicant A

This tab will contain the specifics of the principal applicant: name, date of birth, PPS number, Marital status, Nationality, contact telephone numbers and email, current address, employment details, previous year’s gross income details, the option to add details of other dependent household members (name, date of birth, age)

You will also be required on this tab to upload documents in relation to the following: proof of income (Salary Cert and Employment Detail Summary), proof of citizenship, proof of right to reside in Ireland, proof of buyer status i.e. Help To Buy, and proof of address.

Tab 3: Applicant B

This tab must be used where there is a secondary or joint applicant. The same details as above will be required.

Tab 4: Finance

All applicants will be required to provide evidence of their ability to finance the purchase of their selected property, i.e. mortgage approval in principle letter, Help to Buy amount if applicable and proof of savings i.e. recent statements.

Tab 5: Declarations

You will need to agree to a number of declarations in relation to your application e.g. the information you submitted is true and accurate, etc.

Your application will be assessed, and Cork City Council will determine your eligibility for an affordable home. When all applications have been assessed we will contact you via the online portal, which will send you an email, to advise if your application has been successful or unsuccessful. If you are successful, we will pass your details onto the estate agent who is dealing with the scheme, and you will begin the process of buying your new home.