People disagree on mortgage lending rules, but strongly oppose restrictions on inheritance from parents.



IRISH PEOPLE ARE DISTRIBUTED BY MORTGAGE RULES OF THE CENTRAL BANK, which limit the amount of mortgages available to people buying a home.

The survey was carried out Ireland thinks on behalf of Magazine Good informational project shows different views on mortgage rules, but there is clear agreement that there should be no limit to the money potential homeowners receive from their parents to buy a home.

Lending rules were introduced to ensure stability in the aftermath of the housing and banking crises and are revised every year.

There are exceptions to the rules, but in general they restrict people or couples from borrowing 3.5 times their income. The regulations also require first-time buyers to have a minimum deposit of 10% to qualify for a mortgage, while downstream buyers need 20%.

In Dáil this week, Tanayste Leo Varadkar said that the annual revision of the rules needs to be done as soon as possible

According to the survey, people are generally divided into two parts depending on whether they agree with the rules.

However, the tenants of those who live with their parents are more likely to oppose the rules.

The results show that 47% people agree with the rules and 47% not, 6% answered that they did not know.

Among people who live for free with parents or friends, 64% do not support the rules, most of them rent privately (55%) feel the same too.

Among people who already own a home and have a mortgage, 55% maintain the rules while 40% confront them.

As mortgage lending regulations gain more and more attention due to rise in house prices and potential homeowners facing competition from investment institutions, – wrote the director for financial stability of the Central Bank. Magazine last week that some forms of mortgage measures will become a “permanent feature” because they “reduce the risk of another loan-fueled housing boom.”

But while opinions on mortgage lending rules may differ, the survey found that the vast majority of people do not support restrictions on what people can get from their parents to buy a home.

When asked if there should be a limit 82% were against while just 13% were for. The numbers were stable across age groups and financial conditions.

Capital Acquisition Tax is a tax on gifts and inheritance.

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Under current income rules, a child is entitled to a lifetime tax-free threshold of € 335,000 in respect of gifts and inheritances taken from him or her parents.

This work is co-funded by Journal Media and the European Parliament’s grant program. Any opinions or conclusions expressed in this work belong to the author. The European Parliament does not participate in and is not responsible for the editorial content published by the project. For more information see here


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