TRS calculation

Citizen Jake

Registered User
Messages
30
Still trying to get my head around TRS. If me and partner buy house and the monthly payments come to 1,620 and interest rate is 4.9%, how much TRS are we entitled to roughly? Both FTBs
Jake
 
Impossible to say unless you either give the mortgage term or you otherwise tell us how the €1,620 splits into capital and interest (which will change over time).

If the term was, say, 25 years then using Karl Jeacle's mortgage calculator to work backwards I estimate that the original sum borrowed is c. €280K and the following illustrates (may not be 100% accurate - and certainly not if I have inferred any of your details incorrectly!) the annual capital/interest split of repayments over the term of the mortgage:
Code:
Year      Interest          Capital           Balance
2007      €7,962.12         €3,381.94         €276,618.06
2008      €13,420.12        €6,026.84         €270,591.22
2009      €13,118.08        €6,328.88         €264,262.34
2010      €12,800.91        €6,646.05         €257,616.29
2011      €12,467.84        €6,979.12         €250,637.17
2012      €12,118.09        €7,328.87         €243,308.30
2013      €11,750.79        €7,696.17         €235,612.13
2014      €11,365.06        €8,081.90         €227,530.23
2015      €10,960.07        €8,486.89         €219,043.34
2016      €10,534.73        €8,912.23         €210,131.11
2017      €10,088.11        €9,358.85         €200,772.26
2018      €9,619.09         €9,827.87         €190,944.39
2019      €9,126.56         €10,320.40        €180,623.99
2020      €8,609.34         €10,837.62        €169,786.37
2021      €8,066.20         €11,380.76        €158,405.61
2022      €7,495.85         €11,951.11        €146,454.50
2023      €6,896.88         €12,550.08        €133,904.42
2024      €6,267.94         €13,179.02        €120,725.40
2025      €5,607.47         €13,839.49        €106,885.91
2026      €4,913.91         €14,533.05        €92,352.86
2027      €4,185.57         €15,261.39        €77,091.47
2028      €3,420.74         €16,026.22        €61,065.25
2029      €2,617.58         €16,829.38        €44,235.87
2030      €1,774.17         €17,672.79        €26,563.08
2031      €888.48           €18,558.48        €8,004.60
2032      €98.32            €8,004.58         €0.02
Since the interest payable in the first 7 years is less than your maximum joint FTB relief limit of 2 x €8K = €16K you just get relief on the amount that you actually pay. For example in year two you get relief of c. €13K @ 20% = €2600 p.a. or €217 p.a.
 
The term of mortgage would be 35 years. We're not married (yet)


You need to advise of the amount borrowed as well to work out the interest cost.

However, chances are that most of the repayment currently relates to interest.

Your marital status is not relevant as the limit for 2 single people is the same as the limit for a joint claim.

Could you have asked this question in this thread?
 
Doesn't matter about not being married as long as you are both on the mortgage/property deeds. What amount are you borrowing? About €320 by my reckoning? If this is the case then the indicative annual figures would be:
Code:
Year      Interest          Capital           Balance
2007      €9,308.52         €1,996.48         €318,003.52
2008      €15,819.30        €3,560.70         €314,442.82
2009      €15,637.15        €3,742.85         €310,699.97
2010      €15,445.66        €3,934.34         €306,765.63
2011      €15,244.36        €4,135.64         €302,629.99
2012      €15,032.76        €4,347.24         €298,282.75
2013      €14,810.34        €4,569.66         €293,713.09
2014      €14,576.56        €4,803.44         €288,909.65
2015      €14,330.82        €5,049.18         €283,860.47
2016      €14,072.48        €5,307.52         €278,552.95
2017      €13,800.94        €5,579.06         €272,973.89
2018      €13,515.52        €5,864.48         €267,109.41
2019      €13,215.46        €6,164.54         €260,944.87
2020      €12,900.07        €6,479.93         €254,464.94
2021      €12,568.58        €6,811.42         €247,653.52
2022      €12,220.08        €7,159.92         €240,493.60
2023      €11,853.74        €7,526.26         €232,967.34
2024      €11,468.69        €7,911.31         €225,056.03
2025      €11,063.94        €8,316.06         €216,739.97
2026      €10,638.49        €8,741.51         €207,998.46
2027      €10,191.26        €9,188.74         €198,809.72
2028      €9,721.13         €9,658.87         €189,150.85
2029      €9,226.96         €10,153.04        €178,997.81
2030      €8,707.51         €10,672.49        €168,325.32
2031      €8,161.51         €11,218.49        €157,106.83
2032      €7,587.55         €11,792.45        €145,314.38
2033      €6,984.21         €12,395.79        €132,918.59
2034      €6,350.01         €13,029.99        €119,888.60
2035      €5,683.38         €13,696.62        €106,191.98
2036      €4,982.64         €14,397.36        €91,794.62
2037      €4,246.06         €15,133.94        €76,660.68
2038      €3,471.76         €15,908.24        €60,752.44
2039      €2,657.86         €16,722.14        €44,030.30
2040      €1,802.32         €17,577.68        €26,452.62
2041      €903.02           €18,476.98        €7,975.64
2042      €99.97            €7,975.03         €0.61
In which case you are still not paying more than your joint FTB interest relief limit so you just get relief on the actual amount paid (if rates increase in the first few years then you may breach the €16K relief limit in which case relief will be capped to €16K). Note that the cost difference between a 35 year mortgage and a 25 year one is almost €120K in additional interest!
 
actual amount borrowing is 312,000. Second question, why do the figures jump after year 1 according to your grid?
 
The second set of figures above is not quite correct as I used 5% rather than 4.9%!

If you are actually borrowing €312K over 35 years at 4.9% then the figures* according to Karl's calculator are:
Code:
2007      €8,893.76         €1,989.70         €310,010.30
2008      €15,111.58        €3,545.78         €306,464.52
2009      €14,933.88        €3,723.48         €302,741.04
2010      €14,747.27        €3,910.09         €298,830.95
2011      €14,551.33        €4,106.03         €294,724.92
2012      €14,345.55        €4,311.81         €290,413.11
2013      €14,129.45        €4,527.91         €285,885.20
2014      €13,902.52        €4,754.84         €281,130.36
2015      €13,664.24        €4,993.12         €276,137.24
2016      €13,414.01        €5,243.35         €270,893.89
2017      €13,151.24        €5,506.12         €265,387.77
2018      €12,875.29        €5,782.07         €259,605.70
2019      €12,585.53        €6,071.83         €253,533.87
2020      €12,281.23        €6,376.13         €247,157.74
2021      €11,961.69        €6,695.67         €240,462.07
2022      €11,626.13        €7,031.23         €233,430.84
2023      €11,273.76        €7,383.60         €226,047.24
2024      €10,903.73        €7,753.63         €218,293.61
2025      €10,515.15        €8,142.21         €210,151.40
2026      €10,107.08        €8,550.28         €201,601.12
2027      €9,678.61         €8,978.75         €192,622.37
2028      €9,228.60         €9,428.76         €183,193.61
2029      €8,756.09         €9,901.27         €173,292.34
2030      €8,259.88         €10,397.48        €162,894.86
2031      €7,738.77         €10,918.59        €151,976.27
2032      €7,191.61         €11,465.75        €140,510.52
2033      €6,616.99         €12,040.37        €128,470.15
2034      €6,013.61         €12,643.75        €115,826.40
2035      €5,379.93         €13,277.43        €102,548.97
2036      €4,714.53         €13,942.83        €88,606.14
2037      €4,015.78         €14,641.58        €73,964.56
2038      €3,282.00         €15,375.36        €58,589.20
2039      €2,511.47         €16,145.89        €42,443.31
2040      €1,702.31         €16,955.05        €25,488.26
2041      €852.59           €17,804.77        €7,683.49
2042      €94.41            €7,679.49         €4.00
Note that Karl Jeacle's calculator comes up with a monthly repayment of €1,555 (before TRS is deducted) for these details so I'm not sure where your €1,620 comes from? Does it include mortgage protection life assurance premiums, home insurance etc.?

* Note that this table assumes that the rate remains 4.9% for the lifetime of the mortgage which will not be the case for a variable/tracker or fixed for less than 35 year rate.
 
I'm not sure, it was roughly the amount posted on the loan offer that my solicitor forwarded me on. The mortgage product offers a six month payment holiday, could that have anything to do with it?
 
The mortgage product offers a six month payment holiday, could that have anything to do with it?
Yes.

Anyway - your original question should be more or less answered now. You will probably not get the maximum relief possible so you will get relief on the actual interest that you pay subject to the limit that applies from year 7 onwards. Each year you should get a statement from the lender outlining exactly how much interest you paid and you can then check this against what you expect to receive in relief.
 
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