How do they count the 7 years for mortgage interest relief

H

HousePoor

Guest
OK, according to the Finance Act 2012 mortgages taken out by first-time buyers between 1 January 2004 and 31 December 2008, they promised a special rate of mortgage interest relief of 30% for the tax years 2012 to 2017. But the liars behind our government only kept that 6 year promise for 1 year and in the last budget they changed it so that mortgages over 7 years old would have a significantly lower upper limit.

I took out my Mortgage in December 2006 (at the peak), but I should still have almost a year left on the higher band rate of MIR for under 7 years with a cap of €6K for married First Time Buyers, but despite that my MIR has already been reduced to the lower cap of €1.8k. Am I missing something, other than Enda's a liar?
 
It doesn't run from Dec 06 to Dec 13. Even though you only drew down the loan at the end of 2006 your first year is 2006 so 2012 was your 7th year.
 
Thanks for the reply! What a £$%** rippoff.

I've searched the revenue site and i can't find that clarification anywhere. Can someone point me to a link?

This makes me sick. I hate this government!!!!!
 
As I understand it the TRS credit you are referring to starts in the month of your first mortgage repayment not the month of mortgage drawdown. If mortgage was draw down in December 2006 your first mortgage repayment probably was made January 2007. If so then 2007 is your first year in which case 2013 is the 7th year. Check your mortgage statement. If this is the case call the Revenue helpline and explain. They will want you to write to confirm and possibly look for proof of first payment. Unfortunately after seven years it is reduced. Hope this helps.
 
its not a ripoff
its the way trs has always worked
jan 1st to dec 31st is a year
Dec 06 even though was only one month is still classed as calendar year 1.

as laid out on trs details on the applications forms and online
the ceiling for the first 7 seven years is 10,000 per first time buyer

the ceiling after this is 3,000 per person

you will be receiving 30% of your ceiling or estimated interest whichever is lower.
 
It is a rip off! It's not 7 years no matter how you look at it, unless your first payment was January. But the real ripoff is that Kenny and the boys promised to help those that bought at the peak and the Finance Act 2012 said mortgages taken out by first-time buyers between 1 January 2004 and 31 December 2008, would get a special rate of mortgage interest relief of 30% for the tax years 2012 to 2017 and then in the last budget they reneged on it and changed it around. Yes, I'm still getting mortgage relief, but a lot less.
 
They have not gone back on their word.
You will be getting 30% if you took out between 04 and 08.

And they did not change anything else last year.
There have been different ceiling since 2002 I believe.
 
And it is more than 7 years.
By the time you finish getting trs you will be in year 12 of trs.
 
The point is that the percentage allowed was increased from 20% to 30% but the maximum amount on which this is applied is very low. 3000 is the annual cap. To put that in house purchase terms a 100,000 mortgage at interest rate of 3% is all that TRS can be claimed on. Don't think this would have bought much in the boom.
 
That is 3000 per ceiling per person after year 7 of trs. Or if non first time buyer.
This was in place years ago and was not changed last year or the year before.
 
In the the Finance Act of 2012 it stated that mortgages taken out by first-time buyers between 1 January 2004 and 31 December 2008 would get a special rate of mortgage interest relief of 30%, with a ceiling of €6,000, but in the last budget they slipped in a clause that reduces the cap to €1,800 after 7 years, so if you consider that most mortgages during the peak would have yearly interest over €6K, this is a loss of €4.2K per year. Also note, that in about another year everyone who bought between 1-Jan-2004 to 31-Dec-2008 will have had their mortgages for over 7 years and fall into the lower cap.
 
6000 x 30% = 1800

The max a couple will get is 1800 trs per year or 150 per month.
Thats all the above means
I think you may be understanding it incorrectly
 
Mortgage Interest relief does not depend on income, only on interest paid during the period.
 
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