Mortage TRS Calc

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candyman

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While trying to calculate how my TRS is calc'd by the bank, I came across a very helpful article on the revenue site which explains it quite well in respect of a single person.

The example below is from the revenue site and details the position of TRS in Year 3 as of Jan 2009:
Interest Paid: €10,000
Eligible Amount as a First Time Buyer: €10,000
Relief Rate for First Time Buyer: 22.5%
Relief to be granted is calculate as: €10,000 * 22.5% = €2,250
Monthly TRS based on above figures: €2,250/12= €187.50 per month

If I was a single FTB in Year 3 I'd expect to see 187.50 in TRS monthly.

I bought with my partner in 2006, we are both FTB owner occupiers in 3rd year of mortgage and on Jan 2nd 2009 we got 205.22 back in TRS down from 237.94 in Dec 08.

Anyone any idea how the bank has calc'd 205.22 as my new TRS?

Many thanks.
 
do you pay more than 10k in interest per year? are you married?

Is one persons allowance up to 10K, but the next persons allowance can start over 10K, so your getting more relief than if one person had of bought the house.
 
Senna said:
do you pay more than 10k in interest per year?
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Honestly I'm not sure on this one. We are in Year 3 of a 300k+ mortgage over 30 yrs so I'm guessing we do hit the 10k interest a year as most of what is paid back at this stage of a mortgage is typically interest.

Senna said:
are you married?
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no. cohabiting.

Senna said:
Is one persons allowance up to 10K, but the next persons allowance can start over 10K, so your getting more relief than if one person had of bought the house.
Click to expand...
Not sure if this is a question or a statement Senna! ;-)
 
When did you buy the house?? i phoned the Revenue yesterday as our trs didnt seem right, we bought the house in September 2007 so by right we are first time buyers in year 2 so should be getting 25% as per budget but as per revenue we are first time buyers in year 3 as they calculated the TRS from Jan to December so we are only getting 22.5%
 
Elainee40 said:
When did you buy the house?? i phoned the Revenue yesterday as our trs didnt seem right, we bought the house in September 2007 so by right we are first time buyers in year 2 so should be getting 25% as per budget but as per revenue we are first time buyers in year 3 as they calculated the TRS from Jan to December so we are only getting 22.5%
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we bought in june 2006. So we should be year 3 but if your logic is correct above we are prob viewed by the revenue as year 4. Either way we are still at 22.5. Anyone got any idea how trs is calcd for a co hab non married couple?
 
Whatever year you buy in is year 1. So if you bought June 2006, 2006 is year 1, 2007 year 2, 2008 year 3 and so on.
 
I also have a problem with my TRS. We bought last year in April 2008. We are on a fixed rate for 2-years. The Mortgage Relief rate has gone up in the Budget from 20% to 25% for first time buyers for the first two years, however the mortgage amount taken from our account this month was over 100euro more than it was last month. I don't understand how the amount can go up when the mortgage relief rate has increased. Maybe I am missing something?? I will have to contact the revenue to suss it out.

Anyone else experience this or can explain the increase?
 
Pantone said:
I also have a problem with my TRS. We bought last year in April 2008. We are on a fixed rate for 2-years. The Mortgage Relief rate has gone up in the Budget from 20% to 25% for first time buyers for the first two years, however the mortgage amount taken from our account this month was over 100euro more than it was last month. I don't understand how the amount can go up when the mortgage relief rate has increased. Maybe I am missing something?? I will have to contact the revenue to suss it out.

Anyone else experience this or can explain the increase?
Click to expand...

The reason for the difference is probably because last year your TRS for the whole year was paid over 8/9 months (since you bought in April) whereas this year it is divided over the entire 12 months

i.e last year if a couple your TRS was €4000 for the year which would have been around (€500 per month from MAy on)

this year TRS would be €5000 but over 12 months so €416 per month
 
A query from me too, if anyone can help!
I bought my house in June 2006 (100% finance- don't remind me!)
However, I only drewdown the 10% deposit initially. I didn't drawdown the remaining 90% until May 2008 as the property was completed then.
What year would I be considered under?

My current TRS is €266pm but this is backdated as I only started receiving it in May - ie 6 months into the year)
 
I reckon the OP's trs amount has reduced due to the reduction of interest rates from the ECB.
As your mortgage repayments go down, due to the reduction of interest being paid, so too does your tax relief on the interest as you're paying less every month.
 
Soarer said:
I reckon the OP's trs amount has reduced due to the reduction of interest rates from the ECB.
As your mortgage repayments go down, due to the reduction of interest being paid, so too does your tax relief on the interest as you're paying less every month.
Click to expand...

I reckon your right here Soarer. Makes sense that if the monthly mortgage amount goes down so too does the TRS. However I'm still trying to work out the maths on how the TRS is calculated for a couple.

In Jan we got back €205.22 in TRS. Year 4 TRS = 22.5%.
For a single person this figure would be €187.50 per month as per the maths in the OP.

I need to determine how the bank has worked out €205.22 as the TRS?
 
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