Mortgage Interest Relief to be tapered from Jan 2018?

May I ask a question about this MIR extension please?
I took out my original loan in 2005, and in 2017 I'll be switching.
The remaining balance is 130K but when I switch I will "top up" to a new loan of 150K.
As far as I'm aware I can continue to claim MIR on the switched loan til 2020, but would it be correct to say I can only claim it on the 130 outstanding from the original loan?
Thanks!
/M.
 
The ceilings for TRS will be revised as follows:
 €10,000 will reduce to €7,500 in 2018, €5,000 in 2019 and €2,500 in 2020.
 €20,000 will reduce to €15,000 in 2018, €10,000 in 2019 and €5,000 in 2020.
 €6,000 will reduce to €4,500 in 2018, €3,000 in 2019 and €1,500 in 2020.
 €3,000 will reduce to €2,250 in 2018, €1,500 in 2019 and €750 in 2020.
 
ceiling is changing, this is how they are making the change.
so for a lot of mortgage customers who receive TRS, they may not actually notice a change next year, as a lot of peoples interest figures for the year would be under the current 10k ceiling.
I believe the biggest effect this will have will be in 2019.
 
Rameire ... are you sure its the ceiling that's changing ? ... in that case anyone on a cheap tracker will not be affected at all...!!!
 
rameire said:
ceiling is changing, this is how they are making the change.
Click to expand...
Hi Rameire

Do you have a link for that?

I assumed that the applicable ceilings and rates would be reduced by the same % amount. Otherwise how can the Minister say that 75% of 2017 relief will be extended into 2018, etc.?
 
I am sure it is the ceilings.
As of yet there is nothing showing on the Revenue website to confirm the details.
 
Celilings and qualifying loan amounts are being reduced - see below example from Dept of Finance docs:


Example 2: Sarah and Rob have a mortgage of €225,000 with an interest rate of 2%, i.e. interest payable of €4,500 per year. They currently qualify for the 30% rate and are in the lower interest ceiling of €6,000 per year. In 2017 they will receive relief of €1,350 (€4,500 x 30%), or €113 per month.

The 2018 reduction in the interest ceiling from €6,000 to €4,500 will not have any effect as their interest payable is €4,500. However, the reduction in their qualifying loan percentage will limit the potentially qualifying interest to €3,375 (€4,500 x 75%). Therefore, Sarah and Rob will receive relief of €1,013, (€3,375 x 30%) in 2018, i.e. 75% of their 2017 relief of €1,350. The reduction will continue to €675 in 2019 and €337 in 2020.
 
I will have to contact the Revenue, as they have only advised about the ceilings changing.
 
I have had a response from Revenue and they confirm the Budget tax policy is spot on, its just the policy doc released that I had access to did not expand on this information so was not as clear.
Cheers Sarenco for providing that doc.
 
Note that the annex doesnt do an example of persons repayments and what they would approximately change to just a change in budget policy using the word reduce a lot for the government to look good.

So whats this going to mean now? 20 euro extra a month for 150000, 30 euro extra for 200000 etc.. surely theres somewhere that does an example like that with interest rate.

Of course you would need to be highly educated to read the Budget manual but as well as most papers ignoring this the government have sneakily put it there.

And they would have abolished it altogether were FG in majority last election. Phew.
 
it all depends on paid interest for the calculation of trs. its not just reliant on the balance or the interest rate.
for the majority of customers now, instead of using 100% of interest paid on the mortgage for the calculation of the trs they will now be using 75% of the interest paid. in addition to this they will also be using 75% of the ceilings applicable.
 
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