First Time Buyer's How much can I borrow?
As a general guide first time buyers can borrow a maximum o 4 time salary. so for a single earner earning €40,000 per annum they maximum you can borrow would be €160,000
For two income application we combine both incomes so applicant one is earning €40,000 and the second applicant is earning €30,000 we have total earnings of €70,000 so we can borrow €70,000 x 4-= €280,000
From January 2017 First Time Buyers only need a 10% deposit to purchase a property.
Help to Buy Scheme for First Time Buyers
First time buyers can claim a tax rebate equal to 10% 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 €30,000 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)
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
Details:
The government’s Help to Buy Scheme (HTB) will enable eligible first time buyers to get up to 10% 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 €30k. If you have paid less than €30k income tax / DIRT in the past 4 years – the maximum rebate possible will be the amount of tax you paid.
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.
Online applications for the Help to Buy scheme are now being accepted by Revenue since Jan 3rd 2017.
PAYE employees can apply on Revenue’s MyAccount .
Self Assessed taxpayers can apply through ROS
The full 90% mortgage available.
Why use EDUC Mortgages?
- At EDUC mortgages we offer free advice.
- We charge no fees.
- You pay the same interest rate dealing with EDUC Mortgages as you do if you approach the provider directly.
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
- Permanent tsb.
Haven mortgage ( Broker arm of A.I.B. and E.B.S.) - Finance Ireland,
- Dilosk.
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.