Credit unions are set to offer loans to parents who want to help their adult children to get around the Central Bank mortgage deposit guidelines.
The rules, which were announced last week, mean banks will only be able to lend a maximum of 80% of the value of a home to buyers - while first time buyers will be allowed to borrow up to 90% to a limit of €220,000.
Speaking to the Sunday Independent, sources in the Central Bank say "it is possible" that loans to parents who can "demonstrate that they can meet repayments" will be offered to allow their children to beat the rules.
It was initially believed that parents could help children bypass the deposit rules by taking out loans for so-called 'home improvements', which would be used to boost their children's savings.
But credit unions say that will not be necessary, and that parents can be upfront about taking out loans specifically to help their children buy a home.
It is thought that any fresh competition in the mortgage market will intensify the already fierce battle among home-loan providers, which has pushed down borrowing costs.