Claiming TRS with partial drawdown

problum8

Hi all,

I recently purchased a house in need of refurbishment. I got about 70% of the funds initially for the purchase with the remainder to be drawn down in stages as the work is completed. My query is should I claim for the full amount now or just for the amount I received for the purchase and withe 2013 fast approaching will I lose out on the benefit??
Many thanks for any help

rameire

you can only claim for what you have drawn down as the bank you have the mortgage with, will report each month, with the estimated interest, among other things.
when it comes to next year and you draw down further funds the bank will amend the qualifying percentage of the total loan that will be applicable for trs.

problum8

so with trs coming to an end in 2013 I should try my best to draw down as much of the mortgage as possible before christmas? Otherwise I will forego the remainder of the relief on the mortgage?

rameire

yes, that is correct

problum8

so roughly how much interest per year would I be 'losing' if I do not draw down €50000 prior to 2012 year end? Or are there tables where I can calculate this. Thanks Rameire - bit of a greenhorn to this!

rameire

drawn already 120,000 * 4.5% = 5,400 ( estimated interest for full year )
first time buyer ceiling 10,000
band 25% for first year
so 5,400 * 25% = 1350 trs per year

drawn 2013 not applicable to trs 50,000 * 4.5% = 2250 ~( estimated interest for full year )
band 25% for second year
so 2250 * 25% = 562 trs per year

year three band is 25% so trs on 50k around 562 trs
year four is 22.5% so trs on 50k around 506 trs
year five is 22.5% so trs on 50k around 506 trs
year six is 20% so trs on 50k is around 450 trs

so until the end of trs you will miss out on about 2,500 in trs payments.