Changes to Help-to-Buy Scheme

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Sarenco

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The Help to Buy scheme was designed to help first-time buyers of newly built homes to assemble the required deposit.

The scheme provides for a rebate of tax paid over the previous 4 tax years.

Currently the amount of tax that may reclaimed is the higher of 5% of the purchase price or €20,000.

The Government has now announced that these limits are being increased to 10% of the purchase price or €30,000.

It strikes me that some FTBs will now be in a position to buy without saving any deposit at all.
 
We're FTBs who used the HTB scheme & are about to draw down mortgage in the next 24 to 48hrs. Does anyone know when this amendment to the HTB scheme is effective from & if it could/would apply to us? I believe our developer's solicitors have already received the 20k HTB payment.
 
Here's what the Minister for Housing had to say about the change -

“The expansion of the Help to Buy Scheme for new and self-build properties was a key commitment in the Programme for Government and I am delighted that this fund, which has already helped over 19,000 first-time buyers to purchase their own home, will be expanded. The maximum amount first-time buyers can claim will be increased to €30,000, thus helping thousands more to get on the property ladder."

No details on when this change will take effect.
 
Sarenco said:
Here's what the Minister for Housing had to say about the change -

“The expansion of the Help to Buy Scheme for new and self-build properties was a key commitment in the Programme for Government and I am delighted that this fund, which has already helped over 19,000 first-time buyers to purchase their own home, will be expanded. The maximum amount first-time buyers can claim will be increased to €30,000, thus helping thousands more to get on the property ladder."

No details on when this change will take effect.
Click to expand...

Thanks Sarenco. Yes I read that. The HTB portal hasn't been updated with the amended scheme details either. Sent an enquiry to Revenue.

Have any other government officials/ministers given clarity on the effective/start date for any of the other measures in the wider July stimulus package do you know?

Completion Statement from developer solicitors stated closure date is really next week & the developer's right to apply interest from closure date will be enforced. What interest % or amount that developer can & do tend to apply for missing closure date? Trying to determine if it could be more than 10k or not (diff between old & amended HTB scheme).
 
I too am interested in finding out when the effective date of the change takes place. The contract signing date seems to be the cut-off with the current scheme. Following the same precedent, this would suggest those who have already signed contracts but haven't drawn down the mortgage yet will still only be able to claim 5% HTB. See below link to the narrative of the current scheme.

Let us know if you hear otherwise.

 
Say on a 300,000e new home purchase - can this relief (30,000) actually function like a deposit for the purposes of mortgage deposit etc...........or do you still need to have say 30,000 of free cash on hand......and once a mortgage is drawn down & HTB is approved this money is given "back to you" so to speak?
 
I'm pretty sure when they clear this up, it will be along the lines of if buyer is seeking €x,000 from the scheme, they need to be bringing at least €x,000 to the table themselves. E.g. house value €280,000. Deposit of 28k is in place, but buyer seeks further 10% (28k) with HTB to get further 28k.
 
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Excellent news!

We applied for HTB in July 2019 and builder got 5% paid.
Our estate is still not ready.
Could I reapply to avail the remaining 5%?
 
Revenue call centre staff member advised this am that:
  • Revenue staff haven't received any information on the amendment, it's start/effective date or the eligibility or process for those who have applied & claimed already.
  • They don't know when they will receive more info.
  • Sending an enquiry via myaccount is best. As soon as more info is known it'll be replied to.
  • Revenue.ie is the best place to get updates & as soon as the info is available the site will be updated. That would likely be within the next 7 to 10 days.
  • He 'believed' the start date will be 1st Sept (as that is the start date for many other measures in the July stimulus package) but couldn't confirm yet
  • He 'presumed' those who have claimed already wouldn't be eligible but couldn't confirm yet.
 
Interesting reports on Boards that some developers have already bumped up prices to reflect the change to the HTB scheme -
www.boards.ie

Irish Property Market 2020 Part 2 - Page 44

isnt the answer if you are a teacher or nurse get out of dublin?
www.boards.ie www.boards.ie

The Minister is fooling himself if he really believes the HTB scheme is not inflationary.

I suppose we shouldn't be surprised to see a FF Minister subsidising builders.
 
Revised help-to-buy-scheme open for applications.

"Buyers who signed a contract for the purchase of a new house, or who drew down the first tranche of their mortgage in the case of a self-build, prior to July 23rd, will not satisfy the requirements of the enhanced scheme, but may still apply for the original relief, Revenue said.

In addition, buyers who have already submitted an application under the original scheme but who satisfy the requirements of the enhanced relief may cancel their original application and reapply for the new scheme."

www.irishtimes.com

Revised help-to-buy scheme opens for applications

Relief increased last month in stimulus plan to €30,000 or 10% of the property value
www.irishtimes.com www.irishtimes.com
 
We signed contracts in March 2019 and got 5% from HTB scheme. But our house is still not ready to move in.
Can we still claim the remaining 5% please?

Sarenco said:
Revised help-to-buy-scheme open for applications.

"Buyers who signed a contract for the purchase of a new house, or who drew down the first tranche of their mortgage in the case of a self-build, prior to July 23rd, will not satisfy the requirements of the enhanced scheme, but may still apply for the original relief, Revenue said.

In addition, buyers who have already submitted an application under the original scheme but who satisfy the requirements of the enhanced relief may cancel their original application and reapply for the new scheme."

www.irishtimes.com

Revised help-to-buy scheme opens for applications

Relief increased last month in stimulus plan to €30,000 or 10% of the property value
www.irishtimes.com www.irishtimes.com
Click to expand...
 
Just confirming my doubts about the enhanced Help to Buy scheme. Me and my partner are on a group application, my max relief available is 20k. My partner's max relief is 19k. The approved Group max relief is 30k.

Does that mean we can avail for the enhanced 30k of HTB scheme?
 
Chean08 said:
Just confirming my doubts about the enhanced Help to Buy scheme. Me and my partner are on a group application, my max relief available is 20k. My partner's max relief is 19k. The approved Group max relief is 30k.

Does that mean we can avail for the enhanced 30k of HTB scheme?
Click to expand...
Yes.
 
masterboy123 said:
We signed contracts in March 2019 and got 5% from HTB scheme.
Click to expand...

It's the scheme in effect when you sign contracts that will apply:

Buyers who signed a contract for the purchase of a new house, or who drew down the first tranche of their mortgage in the case of a self-build, prior to July 23rd, will not satisfy the requirements of the enhanced scheme, Revenue said.
Click to expand...
 
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