Mortgage Interest Relief

New Applications for Mortgage Interest Relief.

In Budget 2011, Mortgage Interest Relief is increased to 30% for first time buyers who purchased their property between 2004 and 2008, Mortgage Interest Relief for first time buyers in 2012 remains at 25%, and for non first time buyers, remains at 15%. No relief will be availiable for any purchases from 2013 onwards.

 

Revenue has recently upgraded its online service for the making of claims to tax relief at source (TRS) on mortgage interest.

 

From 3rd of March 2011, new applications for mortgage interest relief should be made online at www.revenue.ie/go/022. This is a more efficient service which will allow customers to provide the required information in a user friendly manner.

 

If you are entitled to previously unclaimed Mortgage Interest Relief, the application should also be made online. Applications can be made up to a maximum of the four most recent tax years.

 

For further information on how to make your application for Mortgage Interest Relief, go to www.revenue.ie/go/022 or contact the TRS helpline at 1890 46 36 26.

 

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 In Budget 2011 The Minister made some changes to Mortgage Interest Relief. The changes had two main objectives. Firstly to stimulate first time buyer  home purchase activity, and also to signal that overall mortgage interest relief would be phased out by end  of 2018. For first time buyers to maximise the relief available to them, They should purchase by no later than 31/12/2012.

 

Maximum relief rates
 		  
Status Years Ceiling per Year Maximum Relief Relief rate per year Monthly Relief
First Time Buyer 1 and 2 €10,000 25% €2,500 €208.33
First Time Buyer 3,4 and 5 €10,000 22.5% €2,250 €187.50
First Time Buyer 6 and 7 €10,000 20% €2,000 €166.66
Non First Time Buyer All 7 years of loan €3,000 15% €450 €37.50

 

 
For more information see www.revenue.ie