Mortgage Interest Relief
To qualify for tax relief on mortgage interest repayments the interest must relate to money that you have borrowed to purchase, repair or improve your sole or main residence.
Relief is also subject to upper limits, which will depend on your personal situation and whether you are a first time buyer.
Rate of Mortgage Interest Relief in 2009:
From 1 May 2009 you can only get mortgage interest relief for the first 7 years of your mortgage.
First-time buyers:
From 1 January 2009, mortgage interest relief for first time buyers is 25% for the first and second year of your mortgage. You will get relief of 22.5% in year 3, 4 and 5. You will get relief of 20% in year 6 and 7.
The relief is subject to upper limits, depending on your personal situation.
The following are the maximum amounts allowable for 2009:
|
|
Single |
Widowed/Married |
|
First Time Buyer |
€10,000 |
€20,000 |
To calculate what this is worth to you each year, get the correct percentage of the rate above that applies to you.
For example, married first-time buyers on the second year of their mortgage get relief at 25% of €20,000. Therefore, the maximum amount their yearly mortgage interest can be reduced by is €5,000.
Non-first time buyers:
From 1 January 2009, mortgage interest relief is 15% if you are not a first time buyer. The relief is subject to upper limits, depending on your personal situation. From 1 May 2009 you will not get tax relief after year 7 of your mortgage.
The following are the maximum amounts allowable for 2009.
|
|
Single |
Widowed/Married |
|
Non-first time buyers |
€3,000 |
€6,000 |
To calculate what this is worth to you each year, get 15% of the rate above that applies to you.
For example, married non-first time buyers on the second year of their mortgage get relief at 15% of €6,000. Therefore, the maximum amount their yearly mortgage interest can be reduced by is €900.
If you take out a new mortgage you must complete a TRS1 form (pdf). Your completed form should be submitted to the Revenue Commissioners as soon as you have made your first mortgage repayment.
This form is also available from your mortgage lender, or by contacting the Revenue Commissioners, TRS Section, Collector-Generals, Sarsfield House, Francis Street, Limerick. If you have any difficulties completing this form, contact the TRS helpline at 1890 46 36 26.
Revenue will provide you with more information about Tax Relief at Source (TRS) for Mortgage Interest Relief.