Mortgage Interest Relief for Dual Applicant Mortgages

ixoy

I've read the resource here on the citizensinformation.ie and on the revenue site but I'm unclear on the following:

In the case of a dual applicant mortgage, where two people are applying for a mortgage and are unmarried, can both parties claim mortgage interest relief?
A lady in the EBS said that we could both claim it even though the mortgage itself would be paid out of a single, non-joint, account (I assume this is because both names would be on the deeds).

So we'd both get €133 relief a month (probably, interest would be close enough to be worth that) - total of €266 off of the mortgage per month for the first 7 years? How does that differ then from a married couple who can claim an annual tax relief of 16k (€266 a month)? In the case of a married couple on a joint mortgage, can both claim the married couple relief - equating to a massive €532 a month?!

The_Conductor

ixoy wrote:

I've read the resource here on the citizensinformation.ie and on the revenue site but I'm unclear on the following:

In the case of a dual applicant mortgage, where two people are applying for a mortgage and are unmarried, can both parties claim mortgage interest relief?
A lady in the EBS said that we could both claim it even though the mortgage itself would be paid out of a single, non-joint, account (I assume this is because both names would be on the deeds).

So we'd both get €133 relief a month (probably, interest would be close enough to be worth that) - total of €266 off of the mortgage per month for the first 7 years?

Yes. Correct. This will of course depend on the actual level of interest being paid. While the relief is normally administered at source (TRS) it may be necessary to contact the Revenue Commissioners to sort out the details.

ixoy wrote:

How does that differ then from a married couple who can claim an annual tax relief of 16k (€266 a month)? In the case of a married couple on a joint mortgage, can both claim the married couple relief - equating to a massive €532 a month?!

It does not differ from the relief on offer to a married couple. They are entitled to €266 a month, between them, not each...... While the state claims to be family friendly- its not to the extent of giving them additional tax reliefs to that extent........

ixoy

Thanks for the reply. I imagine that with rising interests, it'll become horribly easy to be in the position of both parties claiming full interest relief...

egan007

ixoy wrote:

I've read the resource here on the citizensinformation.ie and on the revenue site but I'm unclear on the following:

In the case of a dual applicant mortgage, where two people are applying for a mortgage and are unmarried, can both parties claim mortgage interest relief?
A lady in the EBS said that we could both claim it even though the mortgage itself would be paid out of a single, non-joint, account (I assume this is because both names would be on the deeds).

So we'd both get €133 relief a month (probably, interest would be close enough to be worth that) - total of €266 off of the mortgage per month for the first 7 years? How does that differ then from a married couple who can claim an annual tax relief of 16k (€266 a month)?

Yes, get 2 forums send them away, the bank will deduct the relief at source when instructed by the revenue.

ixoy wrote:

In the case of a married couple on a joint mortgage, can both claim the married couple relief - equating to a massive €532 a month?!

Think about it...no

ixoy

egan007 wrote:

Think about it...no

It did seem excessive I'm assuming the difference here is that in a non-married couple, both names would have to be on the mortgage in order to claim up to the maximum of €266, whereas a married couple only require that one of them has the name on the deeds.

cold_filter

IXOY, if you dont mind me asking how much is your mortgage for, i'd like an idea of how much ill get off mine when the revenue do their thing with my TRS form, PM if you want.

DéiseGirl

Was wondering about this myself as we're on the brink of buying. Good to know. Every little helps etc

ixoy

cold_filter wrote:

IXOY, if you dont mind me asking how much is your mortgage for, i'd like an idea of how much ill get off mine when the revenue do their thing with my TRS form, PM if you want.

I haven't got a mortgage yet but was wondering for general knowledge. Basically you can claim 20% tax relief on the first 8k of interest paid in a particular year in a mortgage (as an individual).

Key point is that it's on the interest on the mortgage, not the full repayment. As it transpires, for the first few years you'll mostly be paying interest on say a 287k mortgage over 30 years so you'd come close to looking to claim the full amount back (so I would imagine).

Victor

The difference mainly arises where one party is paying little or no tax. IF I am correct, if single, they can't claim the full credit, if married they can.

DéiseGirl

Victor wrote:

The difference mainly arises where one party is paying little or no tax. IF I am correct, if single, they can't claim the full credit, if married they can.

What would be classed as "little or no tax"?

The_Conductor

ixoy wrote:

Key point is that it's on the interest on the mortgage, not the full repayment. As it transpires, for the first few years you'll mostly be paying interest on say a 287k mortgage over 30 years so you'd come close to looking to claim the full amount back (so I would imagine).

Allowing for a 4.5% interest rate- annual interest on a 287k mortgage would be about 12.5k- of which you would get back 20% of the first 8k (i.e. 1,600). I.e. you would be paying over 1,200 a month in interest and getting about 130Euro of mortgage interest relief.

Victor

D&#233 wrote: »

What would be classed as "little or no tax"?

Anything less than the tax credit.