The Housing Minister has announced the launch of a new state lender that aims to deliver 7,500 homes within five years.
Home Building Finance Ireland has been given €750 million to lend to builders and developers.
HBFI lending will be on commercial market terms and will take into account the track record of the borrower.
Applications for more than €35 million or for less than 10 units will not be considered.
The Government says the new agency will "supplement rather than compete with existing residential development lenders".
It will instead focus on helping lenders who are experiencing difficulty in securing funding from banks or other institutions for "commercially viable" residential developments.
Minister @Paschald and Minister for Housing, Planning and Local Government @MurphyEoghan today launched Home Building Finance Ireland. The agency has the ability to fund the delivery of c.7,500 homes over the next 5 years. Applications are open today via https://t.co/aPKmo7g7P7 pic.twitter.com/VcnuK9SeEZ
— Department of Finance (@IRLDeptFinance) January 28, 2019
Minster Eoghan Murphy said HBFI will see homes built across the country, and suggested the new initiative will help increase the supply of new properties.
He explained: "It's going to lend to builders and developers up and down the country... smaller builders and developers who will now, with this funding, be able to meet the demand that is there in communities.
"[It will be] in areas where affordability might not be the challenge, but actually the financing of building is the real challenge."
