TRS second mortgage - but first for me

Hi

I'm a FTB so I'm not really experienced with TRS. My boyfriend owns a home and is receiving TRS on his mortgage. We are thinking about buying a site between us to build a home and this will be his second mortgage but my first one. We will continue to live in his home in the near future until ready to build. So my question is this, will I be able to claim TRS on the morgage my name is on? It obviously wouldn't be my PPR as there is no home on it yet. Ony advice would be hugely appreciated

Hi, yes you should get the TRS for that mortgage since the mortgage is to build it to be your PPR. For the home he gets TRS on the mortgage then if he then rents it out he should tell Revenue as TRS is not given where it's an investment property and rented out. He would then get the TRS in the second mortgage for whatever period he has left to receive it. You can read more about TRS here http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html#section2

your best bet is to wait until the full amount of the mortgage has been drawn down before claiming any TRS, with a self build you'll be drawing down the mortgage in stages and if you claim TRS from the beginning you'll 'waste' the benefit by claiming it on only a small proportion of the mortgage.

Thanks to both of you, great advice is always appreciated!