The Environment Minister says a Central Bank proposal to limit mortgages to 80% of a property's value will have to be changed.
Alan Kelly says the plan - which will mean buyers will need a deposit of 20% upfront - is too high.
His comments come amid reports the Government is considering a new insurance scheme to get around the Central Bank rules and make it easier for first-time buyers to get a mortgage.
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The details are still being finalised but it is likely to be based on similar schemes in Canada, Finland and the UK.
Environment Minister Alan Kelly says the issue needs to be dealt with:
