The Initiative aims to provide home buyers with a level of protection against a fall in residential property prices from current levels over the next five years.
The initiative is available to owner-occupiers who wish to buy a new home.
The Initiative offers the home buyer 20% protection from the risk of further house price declines for the first 5 years of the mortgage.
Three mortgage providers are participating in the initiative; Bank of Ireland, EBS and Permanent TSB
The home buyer must first obtain mortgage approval for the full mortgage amount from an approved mortgage provider.
Home buyers will pay 80% of the property’s value upfront. The remaining amount (up to 20% of the property’s value) will be paid in five years by the mortgage provider (on behalf of the home buyer) directly to NAMA.
All properties to be included in the Initiative have been pre-approved by NAMA and are located nationally.
Subject to review, the Initiative will continue to introduce further properties on a phased basis.
Sales transactions are undertaken in the normal manner, with contracts for sale exchanged between the home buyer and the vendor.