mortgage questions that are wrecking my head

[krabik]

okay theproblem is i am getting too many different answers from too many different people...


SO if its okay i will state where i'm at and then the questions i am looking answered... thanks


Myself and the wee woman are looking to buy a house in Limerick, we have been approved for e292k from BOI at a lower than normal interest rate as my girlfriends has a saving scheme with them.

We then decided to try get a sole mortage for either of us as opposed to both us buying because we heard so much about the 1st time buyer benefits..... but we can fully understand what benefits are there for 1st time buyers....


1. stamp duty will not affect us as a 1st TB is this right

2. If we bought together as 1st TB's and then later sold that house and went tobuy another stamp duty would not affect us as long as the house is under e317k.... Is this right?

3. Are there lower interest rates for a 1st TB, and if so does it make a significant difference to amount paid back?

4. If i bought solely and then i got married to my girlfriend, is she able to buy a house thn later, on her own, and still avail of all the 1st TB benefits

5. and in summary whats the benefit of my trying to buy this 1st house on my own and the girlfriend trying to buy on later on should we want to move


i hope this all makes sense to you? please only post a reply if you know what you talking about as my heads wrecked listening to my mates that mean well but tell me anything at all

thanks paddy

 

[ClubMan]

okay theproblem is i am getting too many different answers from too many different people...

What sort of people are giving you conflicting answers? If they're not independent and informed then they are not really worth listening to.

We then decided to try get a sole mortage for either of us as opposed to both us buying because we heard so much about the 1st time buyer benefits..... but we can fully understand what benefits are there for 1st time buyers....

If you mean "can't" then the main FTB benefits are:

• higher exemptions and lower rates of stamp duty
• higher rates of mortgage interest tax relief

Note that just getting the mortgage in a single name may not be sufficient for Revenue not to treat it as a joint purchase. See [broken link removed] and also [broken link removed].

1. stamp duty will not affect us as a 1st TB is this right

If the house is new and under 125sqm then that is correct. Otherwise SD may apply as per the rules outlined .

2. If we bought together as 1st TB's and then later sold that house and went tobuy another stamp duty would not affect us as long as the house is under e317k.... Is this right?

Yes - under the current SD rules/rates.

3. Are there lower interest rates for a 1st TB, and if so does it make a significant difference to amount paid back?

Other than new business introductory rates usually for one year - no. On the other hand such rates are often loss leaders to lure people in who will then pay higher than normal rates from year two onwards. Best to ignore such offers and simply look for the most competitive lender (ideally the most competitive tracker rate lender) for your circumstances. Check out the best buys forum.

4. If i bought solely and then i got married to my girlfriend, is she able to buy a house thn later, on her own, and still avail of all the 1st TB benefits

See the press releases above. If she actually contributes towards the purchase (e.g. by subsidising mortgage repayments) then she is actually a joint buyer and loses her FTB status. There are several other threads dealing with this issue that might be worth reading. Note also that if your GF is not on the mortgage deeds even if she is contributing towards the purchase then you will only benefit from a single person's mortgage interest tax relief.

5. and in summary whats the benefit of my trying to buy this 1st house on my own and the girlfriend trying to buy on later on should we want to move

If you can both legitimately avail of your FTB benefits then the benefits should be obvious. If you buy individually then you mortgage protection life assurance premiums will be lower. Of course if the non covered partner/spouse predeceases the other then the mortgage will not be cleared.

 

[krabik]

clubman thanks for the replies there, it must have taken a while

can some one explain this off the revenue site

What is the position in the case of a gift of part of the purchase monies?

Where a first time buyer receives an unconditional gift of monies which are used to purchase a house, he/she will not be precluded from claiming first time buyer relief.


does this mean you can or cant claim 1tb relief, and also how much is the relief in euros

thanks kk

 

[krabik]

another question

sorry for asking so many questions recently, but the banks seem to be giving me different answers and are only interested in my salary and savings and not what i want to know..... do they not have to have any knowledge of mortgages to work in them !!!!!!


I have 3 questions ...

1.
If i recieve a gift from my GF to help me buy a house/deposit, will i then be able to claim relief on it ( will it be 100% mine) or will her gift be taken into account ???

2.
If my GF went to buy a house later in her life say if we were still single or married, would she still be considered a 1TB because she gave me a gift !!!!

3.
There are better tax relief when you are a 1tb, what is the difference between the 1tb relief rate and a 2nd tb tax relief rates

thanks paddy

 

[CCOVICH]

It seems fairly straightforward to me-if you receive a gift that is to be used towards buying a house it does not preclude you from availing of FTB relief, i.e. you are eligible for the FTB relief.

As to how much the relief is in euro, that depends on the amount of stamp duty that would be otherwise payable, as this is what the FTB relief relieves.

 

[CCOVICH]

Re: another question

1.
If i recieve a gift from my GF to help me buy a house/deposit, will i then be able to claim relief on it ( will it be 100% mine) or will her gift be taken into account ???

As long as it is an unconditional gift, i.e. it does not entitle her to anything in return (e.g. a share of ownership in the house), then you will be able to claim the FTB relief (i.e. no liability to stamp duty as long as conditions re. value of property etc are met, or reduced rates of stamp duty are payable)

2.
If my GF went to buy a house later in her life say if we were still single or married, would she still be considered a 1TB because she gave me a gift !!!!

See above. If you get married, I don't know if she loses her FTB status as she automatically as legal rights on the property under the ?

Note that some lenders may insist that your girlfriend's name go on the deeds.

3.
There are better tax relief when you are a 1tb, what is the difference between the 1tb relief rate and a 2nd tb tax relief rates

There is no '2nd tb tax relief' as such.

Any new house, as long as the certified floor area is less than 125 square metres, is exempt from stamp duty, regardless of whether or not the owner-occupier is a first time buyer or not.

FTBs pay lower (or zero) rates of stamp duty on second hand homes than second time (and subsequent) buyers. The rate depends on the value of the house.

The stamp duty information on the Revenue site (I can't post the link for some reason) tells you everything you need to know.

 

[ClubMan]

In relation to FTB and non FTB relief - perhaps the issue is to do with the different rates of ?