It is designed to help First-Time buyers

The Government’s Help to Buy scheme opened on Tuesday 03/01/2017, and enables First Time Buyers to avail of financial support.

It is designed to help First-Time buyers meet tougher deposit requirements under Central Bank mortgage lending rules, rules that have since been relaxed slightly by the bank.

Help to Buy: The Essentials

If you’re a first-time buyer purchasing a new build or building your own home, you can apply for a tax rebate. To do this, submit an application through the Revenue Commissioners website.

This scheme allows you to claim back income tax or Deposit Interest Retention Tax (DIRT) paid over the four years before the year you buy or build your home. However, if you’ve worked in Ireland for less than four years or paid little income tax, your rebate may be lower.

Help to Buy: Key Restrictions

The rebate is capped at 10% of the property value, up to a maximum of €30,000. It only applies to homes valued at €500,000 or less.

Additionally, you must borrow at least 70% of the property’s value. Under current Central Bank rules, first-time buyers can borrow up to 90%, meaning most will need to provide a 5% deposit.

Help to Buy: Who Qualifies?

If you’re buying or building a home between 19 July 2016 and 31 December 2024, you may qualify for a refund of income tax and DIRT paid in the previous four tax years.

However, if you signed a contract or drew down your first mortgage payment before 19 July 2016, you won’t qualify.

If your contract or mortgage drawdown occurred between 19 July and 31 December 2016, you may still qualify — but only if the property costs €600,000 or less.

From 1 January 2017 onward, the scheme only applies to properties costing €500,000 or less.

To qualify, you must live in the home yourself. Buy-to-let or investment properties are excluded. If you move out within five years, you may have to repay the rebate.

Help to Buy: How to Apply

The application is simple and fully online. You’ll need to upload:

• – A signed contract to purchase the home

• – Property details, including price and expected completion date

• – Mortgage information, such as the lender and loan-to-value ratio

If you bought your home in 2016, you must show that you paid the full deposit. For later purchases, you’ll need to show that you’ve paid the balance of the deposit after the rebate.

Revenue also requires:

• – Details of all buyers (for couples, both names must be included)

• – The developer or contractor’s information (for new builds)

• – For self-builds, your solicitor’s details and proof that the first mortgage payment has been drawn down

Get In Touch

Would you like to talk to someone you can trust, who will give you the best options based on your circumstances? If so, contact MC Financial today on 01-8228022, michael@mcfinancial.ie or call MC Financial anytime on 0879321882

Click here to download our Help-To-Buy Guide