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Mortgage Interest Relief

  • 12-10-2010 6:59pm
    #1
    kil
    Registered Users, Registered Users 2 Posts: 124 ✭✭


    Hi there,

    Long time viewer - first time poster:). I have sale agreed on a house - gone through most of the process - valuation/engineers report etc and expect to sign contracts in the next 2-3 weeks.

    When I sign the contract I specify a date for the handover of keys. What is the actual drawdown date? Is TRS taken from the drawdown date or from the date of first repayment?

    Obviously I stand to lose almost 1 year of TRS if I drawdown the mortgage in November and make my first repayment in December. Whereas if I waited to Janruary I would be in a much better position.

    Any advice appreciated - my head is wrecked from the whole thing!


Comments

  • #2
    Mr. Incognito
    Registered Users, Registered Users 2 Posts: 9,798 ✭✭✭Mr. Incognito


    It's tax relief at source.

    i.e when it is paid.

    and you don't stand to lose a year of TRS if you start loan repayments in Jan. You will only lose a month.

    It's full calendar years that are counted as 1 year.

    Info here:

    http://www.revenue.ie/en/tax/it/leaflets/tax-relief-source-mortgage-interest-relief.html


  • #3
    nompere
    Registered Users, Registered Users 2 Posts: 1,678 ✭✭✭nompere


    I think that the OP is confusing himself with the rule that abolished TRS for people whose loan had already existed for seven years at 1 May 2009.

    For new borrowings, interest will be relieved until 31 December 2017.

    If he draws down now he will get relief for 7 years and three months. Whereas if he waits until January next he will only get relief for seven years. So although there might only be a small amount of relief in 2010 if he draws down now, he will, in the long run, get more relief by starting sooner rather than later.


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