Mortgage Interest Relief
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 maximize the relief available to them, They should purchase by no later than 31/12/2012. Below is a table for first time buyers and non-first time buyers.
The time limits for the expiry of Mortgage Interest Relief now extend for 7 years after 31/12/2012.Or earlier, depending on when the mortgage was taken out. The 25% limit has been increased to 30% for those people who bought between 2004 and 2008.
| 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 |