Mortgage interest relief

If you are a first time buyer with a mortgage, are you claiming mortgage interest relief?

And if you are sharing a mortgage with a partner but not married, are you getting joint relief?

TRS (tax relief at source)can be claimed on mortgagesused to purchase, repair or improve your family home.

The relief isprovided at source by your lender and yourmonthly mortgage repayment eitherwill be reduced by the interest relief or added as a separate payment.

The fastest way of claiming relief is bycompleting the applicationonlineat the Revenue website www.revenue.ie. You will need your PPS number and mortgage account number.

You can alsocomplete TRS1P form which can be obtained from your lender or by phoning the TRS helpline at 1890463626. Married couples canclaimon the same form however for all other joint borrowers a separate form must be completed for each claimant.

If you are a joint borrower and not married, ensure you both fill out a claim form if not you may only be receiving single relief. You canbackdate your claimforthe past4 years.

Mortgage Interest Relief rates for 2010

First time buyers who are single can claim relief on their mortgage interest paid up to €10,000 @ 25%for the first 2 years. The maximum relief available is €208.33 per month.

Married or widowed first time buyers can claim interest paid up to €20,000 at 25% for first 2 years. The maximum relief available is €416.67 per month.

For years, 3, 4 and 5, the rate falls to 22.5% for first time buyers. For years 6 and 7, the rate falls again to 20%.

Following the supplementary budget in April 2009, mortgage tax relief will only be available to first time buyers for the first seven years. After year 7, the relief will no longer apply.

Examples

(1) Deirdre is a first time buyer and borrowed €200,000 at a 3.00% variable to purchase her first home over 35 years.

Her monthly mortgage tax relief will be €125 for the first two years.

(2) John & Sarah are single, first time buyers and borrowed €360,000 at a 3.00% variable rate to purchase their new home. Their monthly mortgage tax relief will be €225.00 for the first two years.

Information correct as at 18th June 2010
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