2017-21 help to buy scheme - megathread. All help to buy discussion here please

Renjit · 19-10-2020 8:18pm

BrosnanL27 wrote: »

Revenue got back to me:

In reply to your query, yes you can make your HTB application in 2021 to enable you to include tax year 2020. However you should note that the claim will need to be verified by your developer and payment is made directly to their bank account

So sounds like it's down to the developer basically.

How did it go with the developer? Did you pay the remaining amount at the time of signing the contract?

BrosnanL27 · 19-10-2020 9:05pm

Renjit wrote: »

How did it go with the developer? Did you pay the remaining amount at the time of signing the contract?

Still waiting to hear back from the developer that they're happy to process our HTB in Jan. As soon as we get confirmation the signed contracts will be sent to them and we will pay the 10% deposit out of savings.

Meandyou999 · 19-10-2020 10:46pm

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

Liam k · 19-10-2020 10:57pm

Hi,

I am a home owner in my own name. If my wife was to build a house in her name instead of joint names is she eligible for the HTB scheme.

Per the below example from Revenue it would appear that she is (as it isn't a joint application) but doesn't explicitly say it.

Thanks

Example 3
Denise and Noel are looking to buy a home together valued at €350,000. Noel is a first time
purchaser but Denise has bought a house previously. If they are buying the property jointly they
would not qualify for the Help to Buy scheme as Denise has previously owned a house.

Renjit · 19-10-2020 11:52pm

BrosnanL27 wrote: »

Still waiting to hear back from the developer that they're happy to process our HTB in Jan. As soon as we get confirmation the signed contracts will be sent to them and we will pay the 10% deposit out of savings.

Ok, so you will pay whole 10% deposit out of your savings now. And then claim HTB later and developer will give you back your 10% deposit.

BrosnanL27 · 20-10-2020 4:28am

Renjit wrote: »

Ok, so you will pay whole 10% deposit out of your savings now. And then claim HTB later and developer will give you back your 10% deposit.

Yes ideally this is how we want it to work. Revenue have said it's ok to do this (even though contracts will be dated 2020 and the HTB won't be processed until 2021). Hopefully it all goes to plan!

Meandyou999 · 20-10-2020 1:39pm

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

JohnnyChimpo · 20-10-2020 1:43pm

Meandyou999 wrote: »

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

Nope, and I wouldn't go drawing too much attention to that transaction if I were you

cant26 · 20-10-2020 2:35pm

Meandyou999 wrote: »

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

No you are obviously not a first time buyer as you already own a house. Your parents tax evasion has cost you the chance of using the HTB incentive.

Meandyou999 · 20-10-2020 3:06pm

cant26 wrote: »

No you are obviously not a first time buyer as you already own a house. Your parents tax evasion has cost you the chance of using the HTB incentive.

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.

Meandyou999 · 20-10-2020 3:07pm

JohnnyChimpo wrote: »

Nope, and I wouldn't go drawing too much attention to that transaction if I were you

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.
I have never bought my own home, the banks status on first time buyer's is that they have never taken out a mortgage to buy a home. Revenue policy is different meaning Never owned a home.

GingerLily · 20-10-2020 6:16pm

Liam k wrote: »

Hi,

I am a home owner in my own name. If my wife was to build a house in her name instead of joint names is she eligible for the HTB scheme.

Per the below example from Revenue it would appear that she is (as it isn't a joint application) but doesn't explicitly say it.

Thanks

Example 3
Denise and Noel are looking to buy a home together valued at €350,000. Noel is a first time
purchaser but Denise has bought a house previously. If they are buying the property jointly they
would not qualify for the Help to Buy scheme as Denise has previously owned a house.

I think you run into difficulties with the mortgage and being married, the bank will want you to take out a joint mortgage, and if so it will be a joint HTB, so no you can't take it out.
Not sure if banks allow married couples to take out single loans, if your wife can get the mortgage without you then she'd be okay for HTB AFAIK

Liam k · 20-10-2020 6:49pm

GingerLily wrote: »

I think you run into difficulties with the mortgage and being married, the bank will want you to take out a joint mortgage, and if so it will be a joint HTB, so no you can't take it out.
Not sure if banks allow married couples to take out single loans, if your wife can get the mortgage without you then she'd be okay for HTB AFAIK

Thanks that's what I think aswell.

I recently switched provider and they allowed me to keep in my name only as I explained that we might be moving soon so hopefully they will do similar for her this time. It'd be serious help to get 30k towards the purchase

Local_Chap · 21-10-2020 12:06am

cant26 wrote: »

No you are obviously not a first time buyer as you already own a house. Your parents tax evasion has cost you the chance of using the HTB incentive.

Not sure why you have that tone, there's nothing obvious about it.

If it was gifted or you inherited it, you are eligible. It would be worth your while looking into it a bit more OP.

https://www.revenue.ie/en/property/help-to-buy-incentive/who-can-claim-the-help-to-buy-htb.aspx

newhouse87 · 21-10-2020 7:14am

Just wondering so i dont get caught out, im approved for the full 30grand and the value of the house will be 327000 so i will get 245k mortgage which will be 75%, on step 2 of my claim they ask for amount of deposit already paid, what does this mean for a self build and does it affect the amount i receive?

Step 2
You will be asked to confirm details about the:
- property
- purchase price (if you are purchasing) or approved valuation (if you are self-building)
- date of completion
- mortgage
- amount of deposit already paid.

cant26 · 21-10-2020 7:19am

Local_Chap wrote: »

Not sure why you have that tone, there's nothing obvious about it.

If it was gifted or you inherited it, you are eligible. It would be worth your while looking into it a bit more OP.

https://www.revenue.ie/en/property/help-to-buy-incentive/who-can-claim-the-help-to-buy-htb.aspx

There is no tone. It’s very obvious. The poster did not mention a gift or inheritance. They explained that their parents purchased a property in the posters name to avoid paying stamp duty. If it was a gift or an inheritance the poster would be open to gift tax or inheritance tax which they never mention.

cant26 · 21-10-2020 7:20am

Meandyou999 wrote: »

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.

I never said it was illegal!

Bubbaclaus · 21-10-2020 8:08am

Meandyou999 wrote: »

Tax evasion yes but illegal no. You could have 29 kids and put a different house in each if there names. There is notting illegle about that.

Tax evasion is illegal.

Meandyou999 · 21-10-2020 2:44pm

Bubbaclaus wrote: »

Tax evasion is illegal.

So would an accountant telling you the best way to avoid paying tax or how save paying on tax be illegal?
Its not tax evasion if its not illegle. Its being smart
Its NOT illegle to buy a house and put it in someone else's name so how would it be classed as being ""tax evasion illegal"".

BrentMused · 21-10-2020 4:11pm

Hello,

Sorry for the very basic question and I'm sure it's been answered 100 times, but with regards to the Help to Buy scheme I just want to get some clarification around potential deposit needed.

Say the new house price is €250,000. Ordinarily you'd be looking at a 10% deposit needed, so obviously €25,000. However, with the Help to Buy, 10% of the value of the property will be covered under the scheme?

Banks will obviously be looking for a track record of savings, a lump sum saved up to show ability to save etc, but is it now the case where if you satisfy the requirements of the bank that you don't necessarily need to have that sort of a deposit saved if the Help to Buy is essentially covering it? Or is that not how it works at all? :pac:

Thank you.

8-10 · 21-10-2020 4:26pm

BrentMused wrote: »

Hello,

Sorry for the very basic question and I'm sure it's been answered 100 times, but with regards to the Help to Buy scheme I just want to get some clarification around potential deposit needed.

Say the new house price is €250,000. Ordinarily you'd be looking at a 10% deposit needed, so obviously €25,000. However, with the Help to Buy, 10% of the value of the property will be covered under the scheme?

Banks will obviously be looking for a track record of savings, a lump sum saved up to show ability to save etc, but is it now the case where if you satisfy the requirements of the bank that you don't necessarily need to have that sort of a deposit saved if the Help to Buy is essentially covering it? Or is that not how it works at all? :pac:

Thank you.

Yes that's how it works now

Troula · 21-10-2020 5:05pm

BrentMused wrote: »

Hello,

Sorry for the very basic question and I'm sure it's been answered 100 times, but with regards to the Help to Buy scheme I just want to get some clarification around potential deposit needed.

Say the new house price is €250,000. Ordinarily you'd be looking at a 10% deposit needed, so obviously €25,000. However, with the Help to Buy, 10% of the value of the property will be covered under the scheme?

Banks will obviously be looking for a track record of savings, a lump sum saved up to show ability to save etc, but is it now the case where if you satisfy the requirements of the bank that you don't necessarily need to have that sort of a deposit saved if the Help to Buy is essentially covering it? Or is that not how it works at all? :pac:

Thank you.

I would also say that the banks will probably still be looking on track records, but not necessarily for all the 10%.
For certain they will need to verify that you have enough to pay for stamp duty for example. Maybe even for the rest of running expenses that you need before buying a house like solicitor expenses etc, but not sure on that.
My understanding is that the track record of saving shows that you were able to save an amount of money meaning you would be able to pay off your mortgage. Maybe I am wrong.

I can guarantee you though that you don't have to have all the 10% in savings if you get the HTB.
We got approved for a mortgage without having that amount saved. (we still had money saved but not the whole 10%, or even the 5% for that matter).

Milena009 · 21-10-2020 5:08pm

Troula wrote: »

I would also say that the banks will probably still be looking on track records, but not necessarily for all the 10%.
For certain they will need to verify that you have enough to pay for stamp duty for example. Maybe even for the rest of running expenses that you need before buying a house like solicitor expenses etc, but not sure on that.
My understanding is that the track record of saving shows that you were able to save an amount of money meaning you would be able to pay off your mortgage. Maybe I am wrong.

I can guarantee you though that you don't have to have all the 10% in savings if you get the HTB.
We got approved for a mortgage without having that amount saved. (we still had money saved but not the whole 10%, or even the 5% for that matter).

That is super reassuring for me as well.
Myself and him qualify for 21k right now, excluding 2020 tax
Hopefully we get to 30k by next year 😸

Putting money aside for the fees at present as well

newhouse87 · 21-10-2020 8:20pm

newhouse87 wrote: »

Just wondering so i dont get caught out, im approved for the full 30grand and the value of the house will be 327000 so i will get 245k mortgage which will be 75%, on step 2 of my claim they ask for amount of deposit already paid, what does this mean for a self build and does it affect the amount i receive?

Step 2
You will be asked to confirm details about the:
- property
- purchase price (if you are purchasing) or approved valuation (if you are self-building)
- date of completion
- mortgage
- amount of deposit already paid.

anybody know, maybe it doesn't matter at all how much deposit i have paid.

dickface · 21-10-2020 9:29pm

If i have a deposit saved can i still get the HTB money ? If yes, can i use it towards a deposit, making my deposit about 20% the value of the property ?

Milena009 · 21-10-2020 9:48pm

dickface wrote: »

If i have a deposit saved can i still get the HTB money ? If yes, can i use it towards a deposit, making my deposit about 20% the value of the property ?

He,
I think you should be able to. My understanding is that htb is eligible as long as the loan is 70% or more of house value

Keeping in mind it gets paid directly to developer so you first might need to front 5k or so, depending on property

newhouse87 · 21-10-2020 9:52pm

does the amount deposit paid have anything to do with what will be refunded from help to buy? For self builds i dont get deposit aspect.

Meandyou999 · 22-10-2020 12:58pm

I am not concerned about qualifing for the help to buy. Dont want that as the property i am buying is second hand so here me out.
Am i still a first time buyer in the eyes of the bank when applying for a mortage??

According to the official Central Bank of Ireland definition, a first-time buyer (FTB) is an individual who has never before, either by themselves or with others, purchased a house, apartment, or a site to build a home, in Ireland or abroad. When it comes to applying this definition to the sale and purchase of mortgages, a FTB is, “a borrower to whom no housing loan has ever before been advanced”.
My parents sold there house and bought a house and put it in my name.
As im my case i have never been advanced a loan to purchase a house. When it comes to applying this definition to the sale and purchase of mortgages, a FTB is, “a borrower to whom no housing loan has ever before been advanced”.
Am i still a first to buyer when appling for a mortage. 10% deposit rather than 20% deposit.

td2008 · 22-10-2020 1:45pm

Yes , I'm in a similar situation. BOI consider me as a first time buyer, KBC also.
UB considered me a second for some reason

Meandyou999 · 22-10-2020 2:06pm

td2008 wrote: »

Yes , I'm in a similar situation. BOI consider me as a first time buyer, KBC also.
UB considered me a second for some reason

Do i have to declare it. We have joint mortgage approval and plan on putting herselfs name soley on the deeds.

awec · 22-10-2020 2:28pm

Meandyou999 wrote: »

Do i have to declare it. We have joint mortgage approval and plan on putting herselfs name soley on the deeds.

Don't think you can do this.

Meandyou999 · 22-10-2020 2:36pm

awec wrote: »

Don't think you can do this.

The joint mortgage with one name on deeds? Is that what you refer to.

awec · 22-10-2020 2:39pm

Meandyou999 wrote: »

The joint mortgage with one name on deeds? Is that what you refer to.

Yes. I believe if it's a joint mortgage, the bank will insist on both names on the deeds.

Meandyou999 · 22-10-2020 2:46pm

awec wrote: »

Yes. I believe if it's a joint mortgage, the bank will insist on both names on the deeds.

And is there any issue with that if my parents put my house in there name when they bought it 16 years ago.

Bubbaclaus · 22-10-2020 4:13pm

Meandyou999 wrote: »

So would an accountant telling you the best way to avoid paying tax or how save paying on tax be illegal?
Its not tax evasion if its not illegle. Its being smart
Its NOT illegle to buy a house and put it in someone else's name so how would it be classed as being ""tax evasion illegal"".

Tax avoidance is perfectly legal. That's what a tax accountant would advise on.

Tax evasion is very much illegal.

Meandyou999 · 22-10-2020 5:38pm

Bubbaclaus wrote: »

Tax avoidance is perfectly legal. That's what a tax accountant would advise on.

Tax evasion is very much illegal.

I agree as the law states. My point being is that putting a property in some elses name before when ftbs were exempt from stamp duty is not tax evasion it is tax avoidance.

Bubbaclaus · 22-10-2020 6:29pm

Meandyou999 wrote: »

I agree as the law states. My point being is that putting a property in some elses name before when ftbs were exempt from stamp duty is not tax evasion it is tax avoidance.

It would have been considered a gift to you though, given you now had an asset in your name that had been paid for by someone else. So either a large chunk of your lifetime tax free CAT exemption was used up, or else you failed to pay CAT on it (if the property was in excess of the lifetime exemption).

Meandyou999 · 22-10-2020 6:32pm

Bubbaclaus wrote: »

It would have been considered a gift to you though, given you now had an asset in your name that had been paid for by someone else. So either a large chunk of your lifetime tax free CAT exemption was used up, or else you failed to pay CAT on it (if the property was in excess of the lifetime exemption).

If it was considered a gift then would i still be eligible for the htb scheme?.
House was 160k

awec · 22-10-2020 6:42pm

Meandyou999 wrote: »

If it was considered a gift then would i still be eligible for the htb scheme?.
House was 160k

Yes, you'd be eligible for HTB.

Meandyou999 · 22-10-2020 7:58pm

awec wrote: »

Yes, you'd be eligible for HTB.

How would you know if it was a gift

GingerLily · 22-10-2020 10:51pm

Meandyou999 wrote: »

HTB eligibility. First time buyer status. Parents bought a house in my name 15 years ago when i was 18 as first time buyers were exempt from paying stamp duty back then hence why they put it in my name on the deeds, house was boughy for cash with the sale proceeds from the previous home they were in. They sold n bought. No mortgage, house bought in my name, am i still a first timer buyer to get the HTB???
Thanks.

Why do you keep asking the same question and ignoring when you get answers you don't like?

Katerrrs · 25-10-2020 12:22pm

Hi all,
I'm wondering if anyone could advise - we're buying a showhouse, it's ready to go now, other than a few snags which the foreman has told us will be completed by Tuesday, and the developer has indicated that they want us to close within 2 weeks of contracts being exchanged (which happened on Friday 23/10/20).
We submitted our HTB claim on Friday night.
My question is how soon can we progress to mortgage drawdown - do we need to wait for the HTB to be verified by the developer or for the HTB funds to actually reach the developer's account before our solicitor can instruct the bank to proceed to mortgage drawdown? And how long does the drawdown process then typically take? We've a baby due in 5 weeks so starting to get a bit impatient and willing things to move as quickly as possible!

Many thanks for your advice

newhouse87 · 25-10-2020 1:13pm

For a self build is it just engineers valuation report i need or do i have to get an auctioneer to value too?

Matthew316 · 26-10-2020 2:20am

Hi guys, would appreciate your help with the following query, can we claim the full value of HTB if the house price is above the maximum borrowing capacity? For Example

House Price - 335000
Maximum Borrowings - 294000
HTB eligiblity - 25000
Savings - 25000

My understanding is that our maximum affordability is 323400 (10% Deposit + Mortgage) but can we claim full HTB + Savings and take out a mortgage of 285000 (285000 + 50000 =335000)?

I have tried to Google same with no Success

cant26 · 26-10-2020 9:00am

Katerrrs wrote: »

Hi all,
I'm wondering if anyone could advise - we're buying a showhouse, it's ready to go now, other than a few snags which the foreman has told us will be completed by Tuesday, and the developer has indicated that they want us to close within 2 weeks of contracts being exchanged (which happened on Friday 23/10/20).
We submitted our HTB claim on Friday night.
My question is how soon can we progress to mortgage drawdown - do we need to wait for the HTB to be verified by the developer or for the HTB funds to actually reach the developer's account before our solicitor can instruct the bank to proceed to mortgage drawdown? And how long does the drawdown process then typically take? We've a baby due in 5 weeks so starting to get a bit impatient and willing things to move as quickly as possible!

Many thanks for your advice

Hi Katters. To get the loan offer we had to supply the bank with the codes you get from HTB once the claim is verified.
With us we had to get a letter from the developer or the developers solicitor confirming they had received the funds before the bank would proceed to drawdown. They said the codes were not enough. Our broker said they were never asked for this before so it seems new.
This was not stipulated in the loan offer but was one of a few things that drew out the drawdown process.
We had a very quick turnaround. Eight weeks in total from when we submitted our mortgage application to closing the sale and the drawdown process for us was the longest.
Also had a few delays with the HTB, nothing serious but you really need to keep on top of them through My Enquireries. We found them very quick to get back. If you’ve just submitted your application keep a good eye for any extra info they are looking for.
Like you we are due a baby any day now so there was so much pressure to get it over the line. Best of luck with it all.

GingerLily · 26-10-2020 10:29am

Matthew316 wrote: »

Hi guys, would appreciate your help with the following query, can we claim the full value of HTB if the house price is above the maximum borrowing capacity? For Example

House Price - 335000
Maximum Borrowings - 294000
HTB eligiblity - 25000
Savings - 25000

My understanding is that our maximum affordability is 323400 (10% Deposit + Mortgage) but can we claim full HTB + Savings and take out a mortgage of 285000 (285000 + 50000 =335000)?

I have tried to Google same with no Success

If your mortgage is at least 70% Loan to Value you can use HTB. With those numbers you'd be about 85% (285000/33500) LTV so you're fine!

mtoutlemonde · 27-10-2020 10:22pm

GingerLily wrote: »

If your mortgage is at least 70% Loan to Value you can use HTB. With those numbers you'd be about 85% (285000/33500) LTV so you're fine!

Do revenue check this? I'm not completly au fait with the LTV but I'm self building and will be using savings so mortgage may not be enough. Just to see if my understanding is correct - I want to build a house for €200,000, I get mortgage of 110,000 - this does not allow me draw HTB as 110,000/200,000 is 55% - am I correct?
But if you were building for 240,000 and borrowing 180,000 that would be 75% so yes.

Empsey · 28-10-2020 11:26am

Hello all

My bank has told me to try and apply for HTB. We inherited the property, both first time buyers. Mortgage to renovate is €250,000.

Is there any way we are elegible HTB as house inhabitable??

Bank said there was but rev blocking application as LPT on property

brisan · 30-10-2020 6:33pm

Empsey wrote: »

Hello all

My bank has told me to try and apply for HTB. We inherited the property, both first time buyers. Mortgage to renovate is €250,000.

Is there any way we are elegible HTB as house inhabitable??

Bank said there was but rev blocking application as LPT on property

to claim HTB, you must:

be a first-time buyer
buy or build a new property between 19 July 2016 and 31 December 2021
live in the property as your main home for five years after you buy or build it
be tax compliant, if you are self assessed you must also have tax clearance.

Unless you knock the house and do a new build on the site I would say no
But It costs nothing to check with revenue

arleitiss · 05-11-2020 11:47am

Hi, just have a query on Help to Buy scheme.

Let's say I have required deposit as First time buyer.
According to my calculations - I can target property of up to 200k

I've been working full time for past 5 Years (3 Different companies though, current one being for nearly two years).

I am single applicant, so I was wondering could I in theory apply for Help to Buy and get lets say 20k tax back - and use that as [deposit + my own savings] to lower the amount of money I am borrowing for mortgage thus lowering the repayments?

2017-21 help to buy scheme - megathread. All help to buy discussion here please

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