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Buying house before TRS tax credit deadline

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  • 16-06-2012 12:00pm
    #1
    riclad
    Registered Users Posts: 8,184 ✭✭✭


    I,M wondering if my sister was to buy a house ,when would she need to sign the contract to buy ,
    is it simply the conveyancing has to be complete before december this year.
    ie if she wants to be able to claim trs tax credits on the mortgage.
    I understand trs tax credit ,s on mortgage interest are being phased out this year in december.


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    #2
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    riclad wrote: »
    I,M wondering if my sister was to buy a house ,when would she need to sign the contract to buy ,
    is it simply the conveyancing has to be complete before december this year.
    ie if she wants to be able to claim trs tax credits on the mortgage.
    I understand trs tax credit ,s on mortgage interest are being phased out this year in december.

    When your sister signs the contract is largely irrelevant. In order to qualify for TRS the loan has to have been issued and interest accruing on the loan. This happens when the solicitor requests the money from the bank and if it's sent by EFT it starts that day, if it's sent by cheque it's starts accruing from when the cheque is cashed i.e. solicitor lodges it to their client a/c. Banks have a cut-off date of anywhere between the 15-20th December for issuing mortgage funds so the loan has to have been drawdown by this date. Even if the actual closing date isn't due till Jan 2013 by drawing down the mortgage this side of Christmas she'll meet the deadline.


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    #3
    riclad
    Registered Users Posts: 8,184 ✭✭✭riclad


    I presume the buyers solicitor, could not ask for the bank to transfer cheque by eft until after the buyer has signed the contract to buy the house.


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    #4
    killers1
    Registered Users Posts: 1,443 ✭✭✭killers1


    riclad wrote: »
    I presume the buyers solicitor, could not ask for the bank to transfer cheque by eft until after the buyer has signed the contract to buy the house.

    They actually could but you run the risk of the sale falling through, returning the monies to the bank and paying the interest for whatever period it was issued..


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