How is Mortgage Relief calculated?

  • Thread starter blackdiamond
  • Start date
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blackdiamond

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Hi I'm a first time buyer that qualifies for 10k mortgage relief this year but I don't understand how our mortgage provider applies it to the loan? Do we just get 10k taken off our yearly repayments? Any info on this would be greatly appreciated.
 
You qualify for relief on a maximum of €10K p.a. If you pay more than this then you get relief on €10K. If you pay less then you get relief on the amount under €10K actually paid. Let's assume that you pay €10K+ interest. Then you get relief on the €10K cap at 20% so that's €10K @ 20% = €4K p.a. or €4K / 12 months = €333.33 p.m. This is the amount by which your normal repayments will be reduced by the lender once your application to Revenue for owner occupier mortgage interest tax relief has been processed.
 
Would the 10K @ 20% not be 2K / 12 =166.66 pm or am I reading wrong.
 
Sorry - my mistake. €10K @ 20% = €2K etc. I was mistakenly working off the married/joint FTB rate of €20K from memory!
 
Is this TRS only for first 7 yrs of mortgage only,or does TRS just get less after 7 yrs
 
Once you qualify for FTB rates of relief you get it for 7 years (not necessarily contiguous and possibly spanning more than one PPR/mortgage). After that the maximum rate of relief falls.

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