Mortgage interest relief

houseoffun14

Hoping someone can point me in the correct direction. I was just going through the stament from my bank, and noticed the tax relief on my mortgage is €116 every month.

I took out a mortgage three years ago for €207,000 for a married couple I am wondering if this level of tax relief is correct for a maried couple?

Thanks

Dub13

Moved to Accommodation & Property

Conar

Seems a little low.
I took out my mortgage 3 years ago for 216000 and I get €166.69 permonth.
We are a couple living in sin too so I thought we'd get less.

Is it your first house?

Brainz

usually the way it works is as follows for a married coupl - new rates from the budget yesterday included

Mortgage Amount x interest rate % = yearly interest –

Yearly rate (if below ceiling of €20 000) multiple this by 20% (tax) = tax credit Divided by 12 months = Monthly tax credit

pm if you want me to work it out

Socky72

Hi,

are you supposed to fill in some kind of forms on purchase i.e does your solicitor register you for mortgage interest relief? or do you have to register with the revenue?

Sorry if a silly Question but it seems on topic.

BobbyD10

I believe there is a TRS form which you complete and send back to their offices in Limerick I think.

K_P

Info and form here: http://www.revenue.ie/index.htm?/faqs/trs_relief.htm

I wasn't quite sure how the whole system worked (and was hoping yesterday's changes would benefit me) so rang Revenue today. As a poster said above, it's actually a simple enough process. I don't know what interest rate you're paying, but for simplicity's sake let's assume it's 5%

Mortgage €207,000 x interest rate 5% = interest paid per year = €10,350

You're already below the previous interest ceiling of €16k so yesterday's changes won't affect you.

€10,350 x 20% interest relief rate = total interest relief per annum = €2,070

€2,070 / 12 = interest relief per month = €172.50

The interest relief you're receiving does seem a bit low so worth checking out. But, those calculations are based on an imaginary interest rate so probably aren't totally accurate. It's worth looking into and if it turns out you haven't received your entitlement, you'll get a nice big refund cheque in the post in a few weeks. I did a few months ago. Pretty nice surprise!

Socky72

Thanks for the info. Much appreciated.

Victor

Isn't this partially dependent on income? If you aren't earning enough, you can't avail of the full TRS?

alice8

Hi all

does anyone know what the rate of mortgage interest relief for a first time buyer who started their mortgage in 2006 was for the years 2006, 2007 and 2008? I can't see anything on the revenue site and we're trying to claim in retrospect. Was the rate 20%?

Thanks!

Victor

alice8 wrote: »

Hi all

does anyone know what the rate of mortgage interest relief for a first time buyer who started their mortgage in 2006 was for the years 2006, 2007 and 2008? I can't see anything on the revenue site and we're trying to claim in retrospect. Was the rate 20%?

Thanks!

It would have been the relevant rate of income tax.

You may have difficulty claiming back more than 4 years.