First Time Buyer's How much can I borrow?
Help to Buy Scheme for First Time Buyers
First time buyers can claim a tax rebate equal to 5% of the value of the new house they are buying from January 2017. A New home is defined as “a new building which was not previously used, or suitable for use, as a dwelling.” Second hand homes are not eligible.
Some people are referring to this scheme as a First Time Buyers Grant.
The Help to Buy tax rebate of up to €20,000 will be available only to first time buyers to help them purchase a new home in Ireland. It is aimed at people who might not be able to afford to put down a 10% deposit in line with Central Bank Mortgage Rules.
The tax rebate can also be claimed on new homes that were bought since July 19th 2016 . But – if you signed a contract to buy a property (or drew down the first tranche of the mortgage for a self-build) before 19th July 2016 you will not be eligible for the Help to Buy Scheme
Important : The rebate applies to NEW homes only (Including self builds)
The Help to Buy scheme is due to finish at the end of 2019.
Bonus : If first time buyers also manage to take out one of the mortgages with cashback – such as with Bank of Ireland , they could get as much as 8% total cashback.. See the Lowest Mortgage Rates Here
The government’s Help to Buy Scheme (HTB) will enable eligible first time buyers to get up to 5% of the purchase price of a new house or apartment back in the form of a tax rebate. This can then be used towards the deposit on the purchase .
The total tax rebate under HTB will be limited to the total income tax and DIRT paid over the previous four tax years and will be capped at €20k. If you have paid less than €20k income tax / DIRT in the past 4 years – the maximum rebate possible will be the amount of tax you paid.
Purchases Before Jan 1st 2017
The rules are different for houses bought or built between July 19th 2016 and Dec 31st 2016. These properties will be eligible for tax rebates on purchases up to €500,000 – but the rebate will still be limited to €30,000.
Purchases from Jan 1st 2017 – The 10% tax rebate will only apply to houses priced up to €500,000. Still with a €30k cap.
Applications for Help to Buy
There are 2 stages to the HTB Application :
Stage 1 is to work out the maximum relief available to you under the scheme based on tax payments you made in the relevant years. You can apply before you choose a house or apply for a mortgage. Once you know the maximum rebate possible – you can then arrange a mortgage and/or sign a contract with a prospective Qualifying Contractor.
When mortgages and contracts are signed you will need to complete Stage 2 of the Help to Buy Claim where the exact rebate will be worked out based on purchase price.
Payments of the rebate will be made directly to the builder/developer as part of the deposit. The builder/developer must have registered with Revenue as a registered contractor under the Help to Buy Scheme . Only properties built by a registered contractor will be eligible.
In the case of a self build – the payment will be made direct to the bank providing the mortgage.
Before making an application for the Help to Buy Scheme , you will first need to complete Online Forms 12 (if a PAYE taxpayer) OR Forms 11 (if self-assessed), in respect of each of the four tax years and you must pay any outstanding taxes due.
After you take out the mortgage you will still be out customer. If another provider offers a better rate we will contact you and let you know.
If you deal with the bank directly do you think they would call you and tell you the other bank is offering you a better rate….
We have access to the following Lender’s
- Avant Money
- Bank of Ireland
- K.B.C Bank Ireland.
Haven mortgage ( Broker arm of A.I.B. and E.B.S.)
- Finance Ireland,
By applying to EDUC Mortgages have access to all of the providers above.
One application form, one meeting and you are guaranteed the best rates on the market from the panel of lenders We are authorised to advise on.