'Lots of us did' - Leo Varadkar claims 'getting money from parents' is an option for people looking for house deposit

House stock image Photo: Deposit

Laura Larkin

Taoiseach Leo Varadkar has said in the Dail that getting money from parents is one of several avenues open to people looking to gather a housing deposit, saying "lots of us did".

Responding to questions from Labour leader Brendan Howlin on people faced with the “hopeless task” of gathering significant deposits Mr Varadkar suggested getting money from parents as one way to get a deposit together.

“It has always been the case that a person needs to raise a deposit to buy a house. People do it in many different ways,” he said.

“Sometimes people go abroad for a period and earn money. Others get money from their parents. Lots of us did. Others get money through other loans. Sometimes people stay at home for a period and raise a deposit in that way,” he added.

The Fine Gael leader said that the only time in history people were not faced with the need to gather significant amounts was during the boom when 100pc mortgages were available, adding that this was not something he wished to return to.

On Monday the Government launched the Affordable Mortgage Scheme under which first-time buyers will be able to get a loan worth up to €288,000 with an interest rate of 2.25pc for 30 years.

The mortgage is only available to people who earn less than €50,000 per year or a combined €75,000 in the case of a joint application.

The scheme has drawn criticism from opposition parties who say it will only serve a small section of society and does not address supply issues.

Mr Varadkar said today the scheme would be assessed in the coming months and he predicted it will be expanded to allow the Government to offer “these low cost loans with fixed interest rates to more people”.