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Mortgage Calculator that considers Interest Relief

  • 24-01-2011 3:41pm
    #1
    highgiant1985
    Registered Users, Registered Users 2 Posts: 1,784 ✭✭✭


    With the mortgage interest relief to be abolished in a few years (I believe 2017?) I'm trying to work out if it would be worth while waiting until after this e.g. 2018 to buy a house as I believe this can only drive house prices down further.

    As opposed to buying a house in 2013/2014 by which stage I'm hopeful prices will have lowered considerable and I'd have a size able deposit saved up.

    I'm finding the calculations of one scenario vs the other quite difficult however in terms of identifying my likely repayments for the life of the mortgage as things are.

    Is there a calculator out there that will show me based on variables e.g. interest rates/amount borrow that I can enter. How much I would be paying for each year of the mortgage? I want to work out how much I'd be paying if I took out a mortgage now with the interest relief still available. I can work out myself then if its not available the differences but if theres a calculator that will do that for me to then great :P

    E.g. I'm looking for a year by year breakdown of likely repayments

    Year 1 - repayment 500 p/w
    ...Year 8 - repayment 1200 p/w

    I know the variables can change but it would let me plan out if I can really afford to take the mortgage out or not.


Comments

  • #2
    D3PO
    Registered Users, Registered Users 2 Posts: 7,879 ✭✭✭D3PO


    Is this a serious question ?

    Using TRS as part of your affordability stress test is a ludacris thing to do as its completly at the whim any budget.

    If you even have to use this in your calculation then you cant afford the mortgage your looking at.


  • #3
    seamus
    Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    http://www.drcalculator.com/mortgage/ie/

    You can work out the mortgage interest relief yourself.

    TBH though as said above, you should be able to comfortably afford your repayments without TRS. TRS should be a bonus, not a crutch.

    You're probably also looking a bit too long term. Will house prices in 2018 be considerably cheaper than they are now? Many people would say almost certainly yes, so hold off lest you pay over the odds. But then that's 7 years away. In 2004 most people would have told you that house prices would almost certainly be higher in 2011, so buy now before you're frozen out.

    I'm not saying that houses will be more expensive in 2018 by the way. I'm simply saying that the further out you forecast, the more difficult it is to be certain. Casting your net out 2 or 3 years is useful. Forecasting 7 years in advance is 25% experience, 75% crystal ball.


  • #4
    Sarn
    Registered Users, Registered Users 2 Posts: 3,110 ✭✭✭Sarn


    You might want to move your timetable up, from revenue.ie

    "Mortgages taken out from 1st January 2012 to 31st December 2012 will be entitled to mortgage interest relief at the reduced rates of 15% for first time buyers and 10% for non first time buyers, on the first €3,000 interest paid per individual.

    Mortgages taken out after 31st December 2012 will not qualify for mortgage interest relief."


  • #5
    vonbarracuda
    Closed Accounts Posts: 225 ✭✭vonbarracuda


    Sarn wrote: »
    You might want to move your timetable up, from revenue.ie

    "Mortgages taken out from 1st January 2012 to 31st December 2012 will be entitled to mortgage interest relief at the reduced rates of 15% for first time buyers and 10% for non first time buyers, on the first €3,000 interest paid per individual.

    Mortgages taken out after 31st December 2012 will not qualify for mortgage interest relief."

    As far as I know Fine Gael said they would get rid of it for anyone who buys after july 2011!!


  • #6
    highgiant1985
    Registered Users, Registered Users 2 Posts: 1,784 ✭✭✭highgiant1985


    D3PO wrote: »
    Is this a serious question ?

    Using TRS as part of your affordability stress test is a ludacris thing to do as its completly at the whim any budget.

    If you even have to use this in your calculation then you cant afford the mortgage your looking at.

    this is a serious question as I'm unsure how TRS works.

    When I put mortage repayments into a caculator for example BOIs

    http://personalbanking.bankofireland.com/mortgages/mortgage-calculators/repayment-calculator/

    It tells me repayments I owe if repaying the mortgage over 20 - 25 years.

    Am I right in saying the repayments values shown here are reduced by the TRS amount? therefore I need to be aware how much the repayments would INCREASE by after the TRS has run out in order to factor in if I can afford the mortgage. By not considering this I would be more likely to unable to afford the mortgage.

    Or is my understanding of TRS incorrect?


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