Covid-19 Pandemic Supports Dail Éireann — 2020-11-26 ============================================================ Pádraig O'Sullivan (FF), Cork North-Central I have been contacted by many aspiring homeowners over the past few months about their mortgage applications. Unfortunately, they are facing much uncertainty about their applications to financial institutions and the drawing down of funding because their employers are availing of the temporary Covid-19 wage subsidy scheme. I know the Minister has engaged with banks about this. During his discussions with the banks, has he received any indication as to how many people are being affected? I have seen in my constituency office, as I am sure the Minister has in his, a volume of queries coming in and I know it is a significant matter. Catherine Connolly (CC), Galway West Deputy Pa Daly is not in the Chamber but this is grouped with his Question No. 68. Paschal Donohoe (FG), Dublin Central I was about to ask which question this refers to. Catherine Connolly (CC), Galway West They are grouped but they are separate questions. Paschal Donohoe (FG), Dublin Central The numbers do not make a difference in me getting to the material. I can deal with the Deputies' questions and I thank them for raising the matter. I propose to take Questions Nos. 68 and 71 together. I have raised the matter with the chief executive officers of all the banks and my officials continue to raise it. I have passed this view strongly to the banks and some have now indicated publicly the same view. Participation in a wage subsidy scheme should not, in general, preclude somebody from being able to get a loan or a mortgage. This must be evaluated on a case-by-case basis by the banks but they are trying to strike a balance, which I understand. I also understand that it is a difficult case to make to those who are worried about whether they will be able to get a loan or a mortgage but the banks need to take care with granting a loan to people who, in a few months or next year, may not be able to repay it because their employer has ended up in difficulty due to the effects of Covid-19 or the effect of changes in the wage subsidy scheme. This goes back to the principle of ensuring that lending is done with care and in a way that is in the long-term interest of the borrower. Again, being on one of our subsidy schemes should not, in general, preclude somebody from getting a loan but the viability of the employer and the nature of the support the employer is getting are matters that must be taken into account. It is my expectation that many of the employers that are on our wage subsidy schemes will continue to be viable and successful in the future. These subsidy schemes should be seen for what they are, namely, an exceptional bridge to get Irish employers through an exceptionally demanding time. Pádraig O'Sullivan (FF), Cork North-Central I thank the Minister for his response. I appreciate that the regulatory framework for the decision to grant or refuse an individual application for a mortgage is a matter for the financial institutions. However, many of the constituents to whom I have spoken have not been impacted financially. The issue is that they cannot draw down a previously approved mortgage. Often their employers provide letters to state that their employment will not be affected and there is no long-term financial difficulty, yet they are not able to draw down the mortgage. I urge the Minister to engage further with the banks on this issue. Paschal Donohoe (FG), Dublin Central I will continue to follow up on this matter. It is very important, not only for those directly affected who are looking to draw down a mortgage but also because the programmes that we have in place now will be in place throughout much of 2021. It is important in the context of our mortgage market continuing to operate and mortgages continuing to be issued, that broad schemes which will continue in some format into and for most of 2021, are not an impediment to people accessing a loan. It has to be done on a case-by-case basis but I hope and expect that if an employer is willing to vouch for and provide evidence of the continued viability of the company, this would be an important element in the evaluation of a loan application. I assure the Deputy that I will continue to raise this matter Pádraig O'Sullivan (FF), Cork North-Central I thank the Minister for his response and appreciate where he is coming from regarding the importance of protecting people who may not have long-term financial security. Nobody is advocating that banks approve loans to people whose jobs are not viable or that they lend recklessly. I am not suggesting that for one minute. I emphasise that I am referring to applicants who were pre-approved for mortgages. They are having difficulty with the drawdown of same because they are on one of these schemes. I am grateful for the opportunity to raise this issue again because it is imperative that we continue to allow people who can purchase a home to do so in order to ensure that we have a functioning housing market. On that note, I welcome the recent announcement by the Minister for Housing, Local Government and Heritage on the launch of an affordable housing scheme. I eagerly await the details on this. I would be grateful if the Minister and his officials would continue to keep the mortgage issue under review. Paschal Donohoe (FG), Dublin Central We will do so. Many of the decisions on the granting of a mortgage were made at a time when the country and the world were very different; things have changed now. I know Deputy O'Sullivan is not advocating an irresponsible approach to these matters. The case he is making is that if there is every prospect of an employer continuing to be viable in the future, that should be taken into account when a person is looking to draw down a loan for which he or she qualified in the recent past. I understand that point and will continue to raise this matter with the banking sector. I recognise the sensitivity of the matter to which the Deputy refers for those who are raising it with him. --- Source: Houses of the Oireachtas. Licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). The Official Report is revised after first publication; the fetch timestamp below identifies the version quoted. Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/dail/2020-11-26/debate/main Retrieved: 2026-08-14T04:48:51+00:00 Sitting date: 2020-11-26