Mortgage Relief for First-Time Buyers in Ireland

C

Caleb

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I'm looking at buying my first property in Ireland, but already have a property abroad. Do I still qualify for first time buyer's mortgage relief?
 
Just to tag on to this thread..
I qualify as a first time buyer under Revenue rules (separated and buying 1st home since I left the original family one) - will I qualify for the 1st time buyers grant? I've recently been told I qualify and have been assigned to an affordable housing accommodation. It's early days - their correspondence doesn't even confirm the property price!!!
 
ClubMan said:
Yes. But you will not be a FTB with regard to stamp duty.
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Is this well known? If I organise my first purchase in Ireland, after previously owning abroad, will the Bank be likely to understand that I qualify for full TRS as a FTB even though I don't qualify for stamp duty relief?

My wife and I previously owned a tiny flat in North London before we escaped over here over a year ago, and we don't want to try to slip the net for stamp duty, but we do need to qualify for FTB TRS relief in order to qualify for the mortgage we want. We only owned the flat for a short time, so we hardly made any money on it and we are forced to take on a 100% mortgage. Our savings barely cover the stamp duty and fees as it is!

Thanks for your help guys. I registered to ask this question, but I have been using you as a resource for some time.

Syl
 
Sylvester3 said:
Is this well known? If I organise my first purchase in Ireland, after previously owning abroad, will the Bank be likely to understand that I qualify for full TRS as a FTB even though I don't qualify for stamp duty relief?
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It's up to you to claim mortgage interest relief via a TRS1 form so ultimately you supply the details to the lender and Revenue.
 
ClubMan said:
It's up to you to claim mortgage interest relief via a TRS1 form so ultimately you supply the details to the lender and Revenue.
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Thank you for getting back to me so quickly!

I'm sorry if I'm being a bit thick, but does that mean I tell the lender "Yes I'm a first time buyer, please take that into account when calculating my tax relief and possible mortgage" whilst I simultaneously go to my solicitor and say "I'm not a first time buyer, please pay the revenue stamp duty"?

The problem is I can't see this benefit described in detail on the revenue website - it is only from this site that I know that I am still entitled to full FTB TRS relief. The only reference to a definition of a FTB on the revenue website that I have found thus far does not allow for our current situation. Could you direct me to an official page that will lay my poor mind at ease, please?
 
Sylvester3 said:
but does that mean I tell the lender "Yes I'm a first time buyer, please take that into account when calculating my tax relief and possible mortgage" whilst I simultaneously go to my solicitor and say "I'm not a first time buyer, please pay the revenue stamp duty"?
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In effect - yes. To claim owner occupier mortgage interest relief you fill in this form and return it to Revenue who will then contact your lender about granting relief at source.

[broken link removed]

With regard to stamp duty you tell your solicitor that you are not a first time buyer or at least your history with regard to owning a property in the past.
The problem is I can't see this benefit described in detail on the revenue website - it is only from this site that I know that I am still entitled to full FTB TRS relief.
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What about [broken link removed]?
The only reference to a definition of a FTB on the revenue website that I have found thus far does not allow for our current situation. Could you direct me to an official page that will lay my poor mind at ease, please?
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The use of the terms "FTB" and "first mortgage" in relation to owner occupier mortgage interest tax relief are indeed confusing since non FTBs and those on a second or subsequent mortgage can still qualify for some or all of the 7 years of preferential "FTB" relief! Rest assured that if you have not claimed this relief in the past (even if you previously owned a property and are not a FTB for stamp duty purposes) then once you claim you are entitled to 7 years of the preferential FTB rates of relief. I'm not sure that I can link to an autoritative source of information on this but it is the case.
 
Thanks once again! One more question then, the form TRS1 asks if I have had a mortgage before and for how long. It does not ask if this mortgage was obtained whilst living abroad, so putting no would potentially make you liable for fraud, wouldn't it? Or do we just assume at this stage that the revenue is only interested in mortgages obtained in Ireland?

Syl
 
I am paying my mortgage since July but I still have not applied for my TRS. Will these few months be given together (July, Aug, Sept, and Oct) so I might get a month mortgage free because of the backlog? Am confused as to what way it will work.
 
Bob the slob said:
I am paying my mortgage since July but I still have not applied for my TRS. Will these few months be given together (July, Aug, Sept, and Oct) so I might get a month mortgage free because of the backlog? Am confused as to what way it will work.
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It will be backdated but I don't know exactly how - e.g. lump sum or some other way. Best to apply ASAP.
 
Sylvester3 said:
Thanks once again! One more question then, the form TRS1 asks if I have had a mortgage before and for how long. It does not ask if this mortgage was obtained whilst living abroad, so putting no would potentially make you liable for fraud, wouldn't it? Or do we just assume at this stage that the revenue is only interested in mortgages obtained in Ireland?

Syl
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I'm not sure to be honest and you might need to check with Revenue.
 
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