Mortgage Interest Relief

irishguy

Just have a couple of questions around mortgage interest relief. I am considering buying a house with my girlfriend (we are both FTB's). So do we both get mortgage interest relief (10k each?) seen as we are not married or is it just 10k between us? Which would seem a bit unfair.
Also say our first years annual payments are equal to or greater than the 20k allowance does that me that we would effectively get 5k tax free off our mortgage (20k*25%) in year 1?

Trampas

you both get the full amount.

What size mortgage are you looking at?

Want to be some mortgage to get the full €5,000 back

irishguy

Thanks I wasnt sure. anything over 1666 per month would get the full amount. Havent decided on anything yet just weighing up the options

Pablo Sanchez

You get 20% of the 20k ie €4k, you take the total amount of relief and divide it by the lower tax band.

blast05

Take a 200K mortgage at 3% interest rate:

200,000 by .03 = 6,000 in interest per year
20% of 6,000 = 1200 (20% as this is the percentage you get back in mortgage relief)
So over 20 years at 3% your repayment would be 1109 per month minus 100 per month in mortgage interest relief

rameire

lets start again shall we.

if you are ftb's as you say and about to have a mortgage, you will receive in year 1 and 2, 25% of the interest up to and including the combined ceiling of 20k, (it will be the lower of the two (interest or ceiling))

year 3, 4 and 5 you will receive 22.5% of the lower (interest or ceiling)

year 6 and 7 you will receive 20% of the lower

year 8 and beyond your ceiling will reduce to 3k per person
you will then get 15% of the lower.

so max per year
1&2 = 208.33 per month per person
3,4&5 = 187.50 per month per person
6&7 = 166.66 per month per person
8+ = 37.50 per month per person

now lets say you sell up and buy again you do not loose your ftb status.
if you buy in the same year you will continue at that year.
if you buy in another year you will then move onto the next year.

the years follow the calendar and tax year.

so if you buy in november come jan you will be in year 2.

sweetie

Sorry to hijack the thread but what is the rate when the 7 years are up.
We will be seven years in October and was wondering is it significantly less
per month. Also is there a way to calculate the yearly total as I have to back claim a couple of years also.

rameire

sweetie wrote: »

Sorry to hijack the thread but what is the rate when the 7 years are up.
We will be seven years in October and was wondering is it significantly less
per month. Also is there a way to calculate the yearly total as I have to back claim a couple of years also.

trs goes jan to dec
so lets say you started oct 2005
the 1st trs year would end for you on the 31st dec
year 2 would start opn 1st jan.

after 7 years as ftb,
you go onto a rate of 15% of the interest or ceiling whichever is lower

ceiling is 3000 per customer.

rameire

sweetie wrote: »

Sorry to hijack the thread but what is the rate when the 7 years are up.
We will be seven years in October and was wondering is it significantly less
per month. Also is there a way to calculate the yearly total as I have to back claim a couple of years also.

also for previous years usually when you initially claim they do a back claim if you provide the relevant info.

if you havent,
go to the revenue.ie
and download a trs1p form

ask your bank for a cert of interest for all previous years
then fill out the form accordingly with the interest figures provided.
and send back to the revenue