2017-21 help to buy scheme - megathread. All help to buy discussion here please

memomtoo

oh! not confident as we are second time buyers but didn't buy a brand new last time. now really looking for one



Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.[/QUOTE]

Antares35

Markitron wrote: »

Yes, you can apply for it whenever you want. The only thing you have to do to apply is a tax return for the previous 4 years. At this point you are obviously better off waiting till 2020 as approval runs out at the end of the year.



Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.

Do you mean, our taxes in respect of 2017-2020 inclusive? Thank you

jimmy86

memomtoo wrote: »

and to calculate a rough estimate, each shows different estimations.

but for example, if we need something valued 370k, how much of deposit to keep?

As a second time buyer you need a 20% deposit, so €74k, banks can give an exemption to have this reduced to 10%, not sure what criteria you have to meet however. You would also have stamp duty (€3700), legal fees etc.

memomtoo

Also forgot the check,

Just incase we like a property that might be old and we need renovations to do.

example: property worth 320k, needed 40k renovation works inside then it has to be from our pockets is it? bank cannot consider that?

Markitron

Antares35 wrote: »

Do you mean, our taxes in respect of 2017-2020 inclusive? Thank you

Yes, if you are applying for HTB 2021, you need tax returns for 2017, 2018, 2019 and 2020.

Actually you may not need them all, the max you can get is 30k so if you paid 30k tax in 2020 and 2019 alone you wouldn't have to bother including the other years in your application.

memomtoo wrote: »

oh! not confident as we are second time buyers but didn't buy a brand new last time. now really looking for one

Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.

[/QUOTE]

Based on what you are saying, you definitely will not qualify for HTB. Both applicants can not have ever had a mortgage before and the house must be new.

Creamy Goodness

memomtoo wrote: »

Also forgot the check,

Just incase we like a property that might be old and we need renovations to do.

example: property worth 320k, needed 40k renovation works inside then it has to be from our pockets is it? bank cannot consider that?

Banks will only allow you to mortgage based on the house price. you'll have a hard time getting them to give money for renovations. Unfortunately these are the types of things that got Ireland in trouble in the last crash (along with 100% mortgages etc.). Banks are - and imo rightly so - more cautious.

memomtoo

aah makes sense.....

but for people who are seriously trying best to save as much as possible and the rules sound so hard now, deposit percent is really tough to make and moreover if brand new doesn't work, then at least do some renovations with old one

Jasna1982

memomtoo wrote: »

aah makes sense.....

but for people who are seriously trying best to save as much as possible and the rules sound so hard now, deposit percent is really tough to make and moreover if brand new doesn't work, then at least do some renovations with old one

You can apply for a deposit exemption (LTV) with the bank, where you will only need to have 10 instead of 20%.

But you don’t qualify for the HTB scheme

memomtoo

Jasna1982 wrote: »

You can apply for a deposit exemption (LTV) with the bank, where you will only need to have 10 instead of 20%.

But you don’t qualify for the HTB scheme

That is a definite goal as it sounds so hard to make so much money upfront but yes affordable to pay
But im yet trying to search on checklist to tick beforehand so carefully want to be eligible for it.

memomtoo

If anyone has an idea on how exemptions work
Please post here
As long as it’s possible

Markitron

memomtoo wrote: »

If anyone has an idea on how exemptions work
Please post here
As long as it’s possible

I'm not sure if you mean LTI or LTV exemptions, but the basic concept is essentially the same. They all depend on your disposable income and any loans/children you have. The more money you have and the less outgoings the better.

Every bank has their own rules as to who qualifies. If you are certain that you need one, you will probably be better off talking to a broker who may be able to point you in the right direction.

jojomaniakos

Hello, I know that HTB scheme requires the minimum loan to value to be at 70%. Does anyone know if there are any limitations on repaying a part of the loan early after closing? For example, if someone was able to come up with 5%-10% more within the first year, could they start with a variable rate on the loan to freely overpay with a lump sum? Would that violate any HTB scheme rules? Thanks!

memomtoo

Can i know if its a brand new property
Example a 3 bed costing 380k
What minimum amount extra we need for any utilities or flooring or whatever that builders not include in brand new construction?

memomtoo

If its a used property
Anyone have an idea if you did such works
Like if its an average 4bed house
If we need new flooring on ground floor
Windows brand new
Bathrooms tiling and any new essentials etc.,
In understand depends but for changing minimum things to make it look finer?

misstyc

memomtoo wrote: »

Can i know if its a brand new property
Example a 3 bed costing 380k
What minimum amount extra we need for any utilities or flooring or whatever that builders not include in brand new construction?

This should give you a guide, obviously the cost can only go up based on the type of floor etc

http://blog.tradesmen.ie/2020/01/laminate-flooring-price-survey-2020/

For white goods it depends on what you want obviously you could spend a small fortune on this stuff

Gardesana Pecher

Markitron wrote: »

Based on what you are saying, you definitely will not qualify for HTB. Both applicants can not have ever had a mortgage before and the house must be new.

Depends if they have bought in Ireland. They could have a property abroad with mortgage payments coming from a foreign bank account. They can still get HTB if it's not showing here.

sparkle109

Hi all
We have been approved for HTB and paid a partial deposit on a new build. The house won’t be ready until July 2022 so while we have approval in principle we haven’t progressed it. We have just got the signed contracts back from the builder, and want to claim the HTB now. Is approval in principle enough or is a formal offer letter needed?
Thanks for any tips

sparkle109

Hi all
We have been approved for HTB and paid a partial deposit on a new build. The house won’t be ready until July 2022 so while we have approval in principle we haven’t progressed it. We have just got the signed contracts back from the builder, and want to claim the HTB now. Is approval in principle enough or is a formal offer letter needed?
Thanks for any tips

Creamy Goodness

sparkle109 wrote: »

Hi all
We have been approved for HTB and paid a partial deposit on a new build. The house won’t be ready until July 2022 so while we have approval in principle we haven’t progressed it. We have just got the signed contracts back from the builder, and want to claim the HTB now. Is approval in principle enough or is a formal offer letter needed?
Thanks for any tips

Signed contract by both parties and formal offer letter (including address of the property) is required

It would be open for abuse if only AIP letter was required.

sparkle109

Thank you! We have the signed contracts but didn’t progress to final offer letter at the time as we knew we would have to reapply in 2021. Will look into progressing and getting that now.

Creamy Goodness wrote: »

Signed contract by both parties and formal offer letter (including address of the property) is required

It would be open for abuse if only AIP letter was required.

memomtoo

anyone has an idea, if we can apply for home improvement loan after property booked? any other criteria involved? will they reject for any reason?

This is it

memomtoo wrote: »

anyone has an idea, if we can apply for home improvement loan after property booked? any other criteria involved? will they reject for any reason?

Home improvement on a new build?

memomtoo

This is it wrote: »

Home improvement on a new build?

good question, it must be on used property

not sure do they approve on new build though?

This is it

memomtoo wrote: »

good question, it must be on used property

not sure do they approve on new build though?

I'm asking you, is it home improvement on a new build? Help to buy is for new build and self build

memomtoo

This is it wrote: »

I'm asking you, is it home improvement on a new build? Help to buy is for new build and self build

Home improvement loan for property that is used one

Not on new build or brand new

memomtoo

Say like we buy a used property and it need some renovations
Can we apply for home improvement loan or personal loan?

At what stage bank approve this for us?

GingerLily

memomtoo wrote: »

Say like we buy a used property and it need some renovations
Can we apply for home improvement loan or personal loan?

At what stage bank approve this for us?

This thread is for HTB which is exclusive to new builds.

DubLad69

I was wondering about choosing the tax years that you want to use.

Say if I signed contracts in 2020 and at the time the HTB was based on the 2016, 2017, 2018, 2019 tax years and offered 15k.

But then I only completed the sale in 2021. Could I then use the 2017, 2018, 2019 and 2020 tax years because that would then offer me €20k? Assuming that I didn't claim the HTB at the start to pay the deposit and only used it when drawing down the mortgage?

Creamy Goodness

DubLad69 wrote: »

I was wondering about choosing the tax years that you want to use.

Say if I signed contracts in 2020 and at the time the HTB was based on the 2016, 2017, 2018, 2019 tax years and offered 15k.

But then I only completed the sale in 2021. Could I then use the 2017, 2018, 2019 and 2020 tax years because that would then offer me €20k? Assuming that I didn't claim the HTB at the start to pay the deposit and only used it when drawing down the mortgage?

You (developer/builder) can only claim your HTB when you upload signed contract by both parties and a loan offer letter. If you don’t close until 2021 you can reject your current application and re-apply again when you can add the next tax year.

It’s the builder/developer that does the claim (outside of self builds) if you tell them there’s an extra 5k knocking about they’ll be more than happy to take it off you.

Jasna1982

DubLad69 wrote: »

I was wondering about choosing the tax years that you want to use.

Say if I signed contracts in 2020 and at the time the HTB was based on the 2016, 2017, 2018, 2019 tax years and offered 15k.

But then I only completed the sale in 2021. Could I then use the 2017, 2018, 2019 and 2020 tax years because that would then offer me €20k? Assuming that I didn't claim the HTB at the start to pay the deposit and only used it when drawing down the mortgage?

I think you even have to.
HTB expires on December 31st. If you haven't claimed by then, you need to file a new request for 2021