# Department of Finance  warned government against Help to Buy Scheme



## Brendan Burgess (24 Mar 2018)

*Mortgage scheme for low earners involves 'significant risk exposure for the State' - Department of Finance*

By Charlie Weston

_Communications sent to the Housing Department from Finance before the scheme was introduced questioned the rationale for the new scheme.

“The rationale for this measure is unclear as this amounts to a demand-side measure in the context of a supply-related problem,” the Department of Finance wrote.

“Even if it were workable, this measure would do nothing to increase housing supply at a time when supply not demand is the problem.”

The Department of Housing said that its responses to the Finance officials addressed all the concerns.

“No changes were made to our proposal,” a spokesperson for the Housing Department said.

The Rebuilding Ireland Home Loan was never intended to increase supply, the spokesperson said.

“It is intended to facilitate a home loan to eligible applicants who were refused a mortgage with commercial lenders.”


Two months after initially raising concerns, officials in both the Department of Finance and the Department of Public Expenditure and Reform withdrew their objections to the scheme._


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