TRS on mortgages

RTE BUSINESS WEBSITE said:
The Minister is also increasing the ceiling on mortgage interest relief for first-time buyers by €2,000 for single people and €4,000 for a married couple or widowed person to €10,000 and €20,000 respectively
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What does that mean in actual euros, it used to be 100 a month for married couples. What is the net amount now?
 
bond-007 said:
What does that mean in actual euros, it used to be 100 a month for married couples. What is the net amount now?
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For two FTBs in the first 7 years of relief it was a maximum of:

(2 x €8K) @ 20% / 12 months = €266.67 p.m.

Now it's

(2 x €10K) @ 20% / 12 months = €333.33 p.m.

For two non FTBs it was:

(2 x €6K) @ 20% / 12 months = €200

Not sure yet what changes there are here.
 
If you own a house on your own and pay at least 10,000 interest PA then you are entitled to 10,000*20%=2,000PA (166.67pm) relief

IF 2 people own a house they are entitled to 20% up to a maximum of 20,000 interest paid ie 166.67*2=333.33.

For argument sake if your mortgage is 400,000 and your Interest rate is 5%, you pay annual interest of 20,000, if this mortgage is in your name you will receive Relief on 10,000 if the mortgage is in 2 names than you earn relief on 20,000
 
On a 20 year term I presume? In that case you actually start out with less than €20K interest and it obviously reduces with each passing year - see Karl Jeacle's mortgage calculator.
Code: 
2007      €19,728.63        €11,949.21        €388,050.79
2008      €19,117.30        €12,560.54        €375,490.25
2009      €18,474.66        €13,203.18        €362,287.07
2010      €17,799.16        €13,878.68        €348,408.39
2011      €17,089.12        €14,588.72        €333,819.67
2012      €16,342.73        €15,335.11        €318,484.56
2013      €15,558.16        €16,119.68        €302,364.88
2014      €14,733.41        €16,944.43        €285,420.45
2015      €13,866.52        €17,811.32        €267,609.13
2016      €12,955.28        €18,722.56        €248,886.57
2017      €11,997.40        €19,680.44        €229,206.13
2018      €10,990.50        €20,687.34        €208,518.79
2019      €9,932.10         €21,745.74        €186,773.05
2020      €8,819.53         €22,858.31        €163,914.74
2021      €7,650.07         €24,027.77        €139,886.97
2022      €6,420.75         €25,257.09        €114,629.88
2023      €5,128.54         €26,549.30        €88,080.58
2024      €3,770.24         €27,907.60        €60,172.98
2025      €2,342.43         €29,335.41        €30,837.57
2026      €841.59           €30,836.25        €1.32
 
I take it any new TRS relief is done automatically?

You don't have to contact anybody about it?
 

as a slight aside I think this means that, personally, when we bought our current house and re-mortgaged our old house, we should have taken out a larger mortgage on the new one as not all of the mortgage interest on the old place can be set off aginst the rent. We only get €180 TRS per month.
 
So I'll pay around 7595 interest per annum and I'm an FTB so does this mean I'll now get 7595 * 20% = 1519 / 12 = 126.58euro interest relief per month?

Are my calculations correct there?
 
RMCF said:
I take it any new TRS relief is done automatically?

You don't have to contact anybody about it?
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If you are already getting it then you should get the increased rates automatically. If you are not claiming it yet or your lender/Revenue do not have correct/up to date details of your circumstances then you should contact them. But this would be the case regardless of budget changes.
 
moondance said:
So I'll pay around 7595 interest per annum and I'm an FTB so does this mean I'll now get 7595 * 20% = 1519 / 12 = 126.58euro interest relief per month?

Are my calculations correct there?
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Yes - assuming that you are a single buyer still within the "FTB" 7 year period for preferential relief.
 
moondance said:
So I'll pay around 7595 interest per annum and I'm an FTB so does this mean I'll now get 7595 * 20% = 1519 / 12 = 126.58euro interest relief per month?

Are my calculations correct there?
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that's correct as long as you are still within the 7yr FTB status....i ws hoping that they might increase it from 20% to maybe 40%
 
Is there an easy way to verify you are getting the full relief entitled? Is it simply a matter of taking the repayment amount (as outlined in letters from the lender) and compare that with the amount actually leaving your account each month? The totals for me don't add up so just not sure if I'm not getting the full relief!
 
loll said:
Anyone know when the new rates are coming into effect?
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from budget summary:

The current annual ceiling on the amount of interest that can be allowed on a mortgage is being increased with effect from 1 January 2008 for first-time buyers from €8,000/€16,000 single/married to €10,000/€20,000 single/married. The additional relief will be available for the first seven years for which there is an entitlement to mortgage interest relief.
 

You need to look at your statement and clarify how each repayment is split between capital and interest. The total interest for the year will be the key figure. If this is at or above the TRS limit for your circumstances then you just get relief on the limit amount. Otherwise you get relief on the lot.

If you post your mortgage details (original amount and start date, rate, term) then people will be able to estimate what you should be getting.
 
Just a quick question peeps.

I had my first house may 2004 to july 2006 and moved in to my new property june 2007. Being a ftb on the first property and using up just over two years of the higher relief. would the higher relief carry over to my current property(until the 7 years is up) or is it just normal having used up my chance on the first property?? Sent off the forms two times for tsr and both "lost" so applied on the net the other week.

Cheers,
Col.
 
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