- Extra capacity to fund growing pipeline of homebuilding projects after approving funding for over 15,000 new homes since inception
- First-ever time HBFI borrowed from the market to complement funding from the State
- Facility will build on HBFI’s existing €730m funding line from the Ireland Strategic Investment Fund
24 November 2025
Home Building Finance Ireland (HBFI), set up by the Government to fund the delivery of new homes, has boosted its total lending capacity by 27% with a new €200m facility with Danske Bank.
This is the first time that HBFI has raised market funding to complement its initial State funding, on which it has relied to date.
The new €200m facility will add to HBFI’s existing €730m facility with the Ireland Strategic Investment Fund (ISIF).
HBFI will use the extra capacity to fund a growing pipeline of homebuilding projects – particularly among SME (small and medium enterprise) housebuilders, where HBFI is increasing its focus in response to evolving market conditions.
HBFI has used its existing ISIF facility to approve €3bn in funding for over 15,000 new homes in over 200 developments in 25 counties throughout Ireland. 83% of approved facilities have related to SME housebuilders borrowing €20m or less at a time.
HBFI has been able to amplify its initial €730m credit line to generate a much higher level of approved funding, by recycling loans as they are repaid from the sale of completed homes. This allows HBFI to use repayments from earlier loans to fund new facilities with new borrowers.
The legislation establishing HBFI gives it the power to raise up to €750m in market funding, in addition to its €730m ISIF facility.
The Government supported HBFI’s decision to raise market funding at this time as part of its new housing plan, “Delivering Homes, Building Communities”, which was announced earlier this month.
Tánaiste and Minister for Finance, Simon Harris TD, said:
“Home Building Finance Ireland (HBFI) plays a key role in housing delivery and in providing finance to homebuilders across the country, particularly SMEs.
The Government is committed to ensuring that HBFI has the capacity and flexibility to respond to funding gaps and to support increased housing delivery. In line with this, as announced as part of Budget 2026, I welcome this external funding of €200 million which will strengthen HBFI’s capacity to continue to provide funding where it is most needed.
HBFI’s commitment to direct an additional €200 million to SME homebuilding projects will further help the SME sector as it seeks to scale up activity in the years ahead.”
HBFI Chief Executive, Dara Deering, said:
“Since opening for business in 2019, HBFI has made a substantial contribution to increasing the supply of new homes for first-time buyers, renters and people who need social housing, with over €3bn in funding approved to build over 15,000 new homes.
We’ve decided now is the right time to borrow from the market, as we continue to increase the number of housebuilding firms we support – particularly SME housebuilders.
This new facility will allow us to fund even more homes and to continue to play a supporting role in alleviating Ireland’s supply shortage.”
Danske Bank Head of International Units & Country Manager Ireland, Alistair Welch, said:
“Danske Bank is pleased to provide this facility to Home Building Finance Ireland (HBFI).
This facility, when added to HBFI's existing funding, will be used to add extra capacity to fund a pipeline of homebuilding projects, demonstrating HBFI’s commitment to providing additional funding to support homebuilders across Ireland.
We look forward to watching the projects progress in the years ahead.”
About HBFI
- Established under the Home Building Finance Ireland Act 2018.
- Commenced operations on 28th January 2019.
- Initial funding capacity of €730m made available by the Ireland Strategic Investment Fund (ISIF), which is recycled as early loans are repaid, freeing up capacity for new lending
- A private company with its own Board operating on a commercial basis, wholly owned by the Minister for Finance.
- HBFI is subject to State Aid rules and audited by the Comptroller & Auditor General.
- In June 2025, the then Minister for Finance, published the third review of HBFI, as required under Section 24 of the HBFI Act, which found that its continuation remains necessary given prevailing market conditions.