THE CREDIT UNION Managers Association (CUMA) has called on the government to include authorised credit unions in the Help to Buy Scheme.
The scheme is a government initiative for first-time buyers, which provides a tax refund of up to €30,000 to put towards the deposit of a newly-built or self-built home.
It applies for homes that cost €500,000 or less and those who avail of the scheme must live in the property as their home for a minimum of five years.
There are a number of rules, limits and conditions for those who avail of the scheme, which is aimed at incentivising first-time buyers to purchase new properties to stimulate the building of new homes.
To qualify for the scheme, you must take out a mortgage with a qualifying lender. The pillar banks facilitate these mortgages.
However, CUMA is now urging that the scheme be available for credit unions to offer. It said this move would increase competition in the mortgage market and support first-time buyers.
The association’s chief executive Lisa Stapleton told the Joint Oireachtas Committee on Finance that the exclusion of credit unions from this scheme is a “missed opportunity” as the government continues to grapple with Ireland’s housing crisis.
“Credit unions have demonstrated that they can provide competitive financial products while remaining trusted, community-based lenders,” Stapleton said.
“Including authorised credit unions as qualifying lenders would increase competition, broaden access to homeownership and provide consumers with greater choice.
“It would also support government objectives around housing affordability, financial inclusion and the development of a more diverse financial services sector.”
Credit unions serve more than three million people, she added, and are continuing to expand and invest in its services.