Receiving Mortgage Interest Relief

S

Sammie

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Hi, I start paying my mortgage next month and have just filled out the TRS1 form and sent it to revenue. My interest for the first year is €11,872.

So with the budget and the latest mortgage relief:

20% of €8000 =1600

1600 % 12 = €133.34


Does this mean that in my pay each month I get €133.34 added to it because of mortgage interest relief??

If not how does it work?

thanks
 
Our mortgage comes out of my husband's account (but I still contribute half of it - oh well!). The full amount is deducted each month and the mortgage interest relief is paid into his account at the same time.
 
so does that mean that I wont see the money as such, but it comes off the interst paid each month? Reducing the amount of money I have to pay back each month or at the very end of the mortgage??

I don't understand it :confused: could you be so kind and explain the process to me please, laymans terms please....

the amount i have to pay back each month is €1239 interest for year one is €11,871
 
so you will actually pay€ 1106.00 that is, 1239€ less 133€ which Revenue will contribute..

As you will only begin paying your mortgage in February, your full year's relief of 20% of €4000 (single person) or €8000 (couple) will be spread over 11 months...
 
Sammie said:
so does that mean that I wont see the money as such, but it comes off the interst paid each month?
Click to expand...
Yes - owner occupier mortgage interest relief is granted at source so (assuming that you have applied for it and it has been granted - and you keep things up to date) your lender will deduct the relief from the interest part of your monthly repayment. You need to check your mortgage statements to make sure that it's all in order.
 
triplex said:
so you will actually pay€ 1106.00 that is, 1239€ less 133€ which Revenue will contribute..

As you will only begin paying your mortgage in February, your full year's relief of 20% of €4000 (single person) or €8000 (couple) will be spread over 11 months...
Click to expand...

I though this had changed to €8000 single and €16000 couple?
 
Hi Sammie, My lender credits my account with the Mortgage Interest Relief and then debits the repayment from my account.
 
Thanks everyone.

I'll probably get a letter from the bank once the trs is processed by revenue with the updated amount payable or how it's going to be handled. Would this be the norm?
 
Your account will just be reimbursed with the trs at the same time that they take out the full mortgage amount.

eg. your statement will show something like:

25/01/07 debit 1150
25/01/07 credit 166.00 (or whatever the trs is)

I don't think we got any letter from the bank about it - it's not the bank who will be giving you back the money, it'll be the government.
 
The account you are talking about, is that my mortgage account with the bank I borrowed the money from or my current account with my own bank?
 
Sammie said:
The account you are talking about, is that my mortgage account with the bank I borrowed the money from or my current account with my own bank?
Click to expand...

The account that the money comes out of will be reimbursed straightaway each month to the tune of whatever the tax relief you qualify for.
 
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