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

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Comments

  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    z0oT wrote: »
    It's not clear from your posts - Are you saying you paid 10% out of your own savings at the contract signing and then the 90% - The Help to Buy amount at closing?

    Just trying to understand.

    I wasn't aware that it could be done that way. I thought the Help to Buy had to be claimed and paid out at the contract signing stage.

    We paid 10% at contract signing.

    The developer claimed the HTB after we finalised snagging, and when they received the money then the sent out the final paperwork.

    The bank released the funds after confirming the HTB had paid out.

    That's just what happened with our house purchase.


  • Registered Users Posts: 740 ✭✭✭z0oT


    GingerLily wrote: »
    We paid 10% at contract signing.

    The developer claimed the HTB after we finalised snagging, and when they received the money then the sent out the final paperwork.

    The bank released the funds after confirming the HTB had paid out.

    That's just what happened with our house purchase.
    Thanks for clarifying.


    I'll need to run our situation by the Revenue I guess.


  • Registered Users Posts: 18,272 ✭✭✭✭Atomic Pineapple


    GingerLily wrote: »
    We paid 10% at contract signing.

    The developer claimed the HTB after we finalised snagging, and when they received the money then the sent out the final paperwork.

    The bank released the funds after confirming the HTB had paid out.

    That's just what happened with our house purchase.

    Shouldn't you have got the HTB payment back then!?

    EDIT: Ah OK, I guess because your LTV was less than 90% the HTB covered the difference?


  • Registered Users Posts: 740 ✭✭✭z0oT


    At the claim stage, I gather you need to furnish Revenue with the signed contracts and signed loan offer from the bank.


    What was the mortgage amount on the loan offer for those that have claimed it?


    We would be at an LTV of about 85%, claiming the Help to Buy would bring us down to 80%. In our case does the loan offer we would provide to Revenue have to be specified at 80% LTV or 85% LTV? Does it matter?



    I know you can't claim it at all if you're under 70% LTV.


  • Registered Users Posts: 207 ✭✭hanaimai


    z0oT wrote: »
    At the claim stage, I gather you need to furnish Revenue with the signed contracts and signed loan offer from the bank.


    What was the mortgage amount on the loan offer for those that have claimed it?


    We would be at an LTV of about 85%, claiming the Help to Buy would bring us down to 80%. In our case does the loan offer we would provide to Revenue have to be specified at 80% LTV or 85% LTV? Does it matter?



    I know you can't claim it at all if you're under 70% LTV.

    The HTB doesn't change your LTV. Your LTV is the ratio of your mortgage to the value of the house and these figures are static regardless of whether or not you avail of the HTB. For example, you purchase your house for 400,000 and take out a loan of 350,000. Your LTV is 86% and you need a deposit of 50,000. The HTB reduces the deposit, but your LTV will always stay the same.


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  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    z0oT wrote: »
    At the claim stage, I gather you need to furnish Revenue with the signed contracts and signed loan offer from the bank.


    What was the mortgage amount on the loan offer for those that have claimed it?


    We would be at an LTV of about 85%, claiming the Help to Buy would bring us down to 80%. In our case does the loan offer we would provide to Revenue have to be specified at 80% LTV or 85% LTV? Does it matter?



    I know you can't claim it at all if you're under 70% LTV.

    If you want to change your mortgage amount you'll need to do that with the bank, the bank don't deal with revenue.


  • Registered Users Posts: 740 ✭✭✭z0oT


    hanaimai wrote: »
    The HTB doesn't change your LTV. Your LTV is the ratio of your mortgage to the value of the house and these figures are static regardless of whether or not you avail of the HTB. For example, you purchase your house for 400,000 and take out a loan of 350,000. Your LTV is 86% and you need a deposit of 50,000. The HTB reduces the deposit, but your LTV will always stay the same.
    Well assuming we can get our hands on it, it'll be another 5% of the purchase price we wouldn't have got otherwise. So we'll use it to reduce the mortgage by the corresponding amount, that's the plan.

    Have you availed of it?
    GingerLily wrote: »
    If you want to change your mortgage amount you'll need to do that with the bank, the bank don't deal with revenue.
    Well obviously that's the case, but that's not what I'm asking at all.

    Lets take example numbers to illustrate:

    New Build Price: 400k
    Eligible Help to Buy Amount: 20k
    Available Funds for Deposit: 40k

    So the final mortgage amount will either be 360k (90% LTV without the HTB) or 340k (85% LTV with the HTB).

    When you provide Revenue with the Loan Offer Letter from the bank, does it need to be 340k or 360k in the above example?


  • Registered Users Posts: 207 ✭✭hanaimai


    z0oT wrote: »
    Well assuming we can get our hands on it, it'll be another 5% of the purchase price we wouldn't have got otherwise. So we'll use it to reduce the mortgage by the corresponding amount, that's the plan.

    Have you availed of it?


    Well obviously that's the case, but that's not what I'm asking at all.

    Lets take example numbers to illustrate:

    New Build Price: 400k
    Eligible Help to Buy Amount: 20k
    Available Funds for Deposit: 40k

    So the final mortgage amount will either be 360k (90% LTV without the HTB) or 340k (85% LTV with the HTB).

    When you provide Revenue with the Loan Offer Letter from the bank, does it need to be 340k or 360k in the above example?

    Yes, I'm currently going through the process.

    In your example, you just pick whichever mortgage amount you want. If you want to borrow 360k and you are eligible for 20k from the HTB, then you just need to put 20k more in to the deposit and you can keep your remaining 20k for furniture or whatever. If you'd prefer to borrow less, then you apply for a mortgage of 340k, use 20k of the HTB towards the deposit and you put up the remaining 40k required.

    So it's not really a case of which one should it be, it's whichever loan amount you want to apply to the bank for and that the bank has approved for you to borrow.


  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    z0oT wrote: »
    Well assuming we can get our hands on it, it'll be another 5% of the purchase price we wouldn't have got otherwise. So we'll use it to reduce the mortgage by the corresponding amount, that's the plan.

    Have you availed of it?


    Well obviously that's the case, but that's not what I'm asking at all.

    Lets take example numbers to illustrate:

    New Build Price: 400k
    Eligible Help to Buy Amount: 20k
    Available Funds for Deposit: 40k

    So the final mortgage amount will either be 360k (90% LTV without the HTB) or 340k (85% LTV with the HTB).

    When you provide Revenue with the Loan Offer Letter from the bank, does it need to be 340k or 360k in the above example?


    You will already be approved for the scheme before you send the contracts to Revenue as part of the claim stage, the loan offer you send should be the one you actually plan on drawing down - so if you want to use thr HTB to increase your deposit and reduce your mortgage you'll need a new loan offer.


  • Registered Users Posts: 740 ✭✭✭z0oT


    Thank you both for your answers.

    GingerLily wrote: »
    If you want to use thr HTB to increase your deposit and reduce your mortgage you'll need a new loan offer.



    Crux of the issue for us is that the bank wants to see the developer registered on the list of Approved Contracters on the Revenue website before they'll reduce the amount on the Loan Offer.


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  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    z0oT wrote: »
    Thank you both for your answers.






    Crux of the issue for us is that the bank wants to see the developer registered on the list of Approved Contracters on the Revenue website before they'll reduce the amount on the Loan Offer.


    Can you not just get a mortgage for the higher amount? You can always pay off a large chunk early if you leave a portion of your mortgage at a variable interest rate?


  • Registered Users Posts: 740 ✭✭✭z0oT


    GingerLily wrote: »
    Can you not just get a mortgage for the higher amount? You can always pay off a large chunk early if you leave a portion of your mortgage at a variable interest rate?
    Yes, that's no issue - We already have the mortgage loan offer for the higher amount, as a contingency. It actually isn't that big of a deal if we can't claim it.



    The developer we're buying from doesn't strike me as the most organized, if they're to advertise eligibility for Help to Buy, they really should have it all ironed out up front and be on that list.


  • Registered Users Posts: 1 Chrisc84


    Hey

    Just wondering if someone could confirm if my understanding is correct.

    I am purchasing for 225k at 90% LTV, I have 5% myself and am planning to use HTB for the other 5%. Do I pay my 5% at contract signing and then the developer will claim the other 5% from Revenue before the sale closes.

    Also have people insisted on clauses being entered in the contract to account for the HTB claim being successful or is it certain to be paid out once the approval of the application has been obtained.


  • Registered Users Posts: 2,228 ✭✭✭podgemonster


    Chrisc84 wrote: »
    Hey

    Just wondering if someone could confirm if my understanding is correct.

    I am purchasing for 225k at 90% LTV, I have 5% myself and am planning to use HTB for the other 5%. Do I pay my 5% at contract signing and then the developer will claim the other 5% from Revenue before the sale closes.

    Also have people insisted on clauses being entered in the contract to account for the HTB claim being successful or is it certain to be paid out once the approval of the application has been obtained.

    Your first question is the essence of what the scheme is for. To help first time buyers fund their deposit. However the developer is under no obligation to proceed this way and can request 10% deposit on sign off. You cannot claim your HTB grant without signed contracts. You need to clarify with the seller that they will accept what you are proposing, most will. If your developer isn't on the list of revenue developers or just a difficult company, you may need to get your own solicitor to push your case to proceed with the 5% cash and 5% HTB.


  • Registered Users Posts: 241 ✭✭Sponsorgate


    Hi All


    I am currently doing a self build


    I have a mortgage for 190,000 & the cost of the build is 245,410. I was gifted a site valued 25k so the purchase price was 270,410


    I initially thought I may qualify for HTB with LTV 190,000/270,410 = 0.702


    But for self builds its the value your lender puts on the property right? They have put a valuation of 325,000 on the property when its complete. I won't qualify then right?


    Thanks
    SponsorGate


  • Registered Users Posts: 1,959 ✭✭✭Trimm Trabb


    Was talking to an estate agent the other day and she indicated that she had heard that help to buy was going to be scrapped in the upcoming budget? Has anyone heard anything similar?

    It says on revenue website that people who buy new houses from July 19th 2016 and December 31st 2019 are eligible - we are quite close to being ready to buy this year so if it really is going would make me get a serious move on.


  • Registered Users Posts: 740 ✭✭✭z0oT


    z0oT wrote: »
    Thanks for clarifying.

    I'll need to run our situation by the Revenue I guess.
    Just to follow up, I rang Revenue yesterday.

    So, given that the developer is waiting to be included in the list of approved contracters on the Revenue website, we could claim the HTB amount either at or closer to closing. We're not dependent upon the HTB to get the 10% deposit together so that's not an issue.

    It would involve paying the full 10% ourselves in the meantime, claiming the HTB later and reducing the mortgage with the bank closer to closing.
    Was talking to an estate agent the other day and she indicated that she had heard that help to buy was going to be scrapped in the upcoming budget? Has anyone heard anything similar?

    It says on revenue website that people who buy new houses from July 19th 2016 and December 31st 2019 are eligible - we are quite close to being ready to buy this year so if it really is going would make me get a serious move on.
    I know there's been talk of getting rid of it for a while, because all it really has done is just push up the price of all new builds rather than making them more affordable. I don't think there's been anything official towards axing it yet though.

    I've been wondering whether we'll get it or not for that very reason - we should be signing our contracts in the coming weeks.


  • Registered Users Posts: 1,162 ✭✭✭autumnbelle


    Hi All


    I am currently doing a self build


    I have a mortgage for 190,000 & the cost of the build is 245,410. I was gifted a site valued 25k so the purchase price was 270,410


    I initially thought I may qualify for HTB with LTV 190,000/270,410 = 0.702


    But for self builds its the value your lender puts on the property right? They have put a valuation of 325,000 on the property when its complete. I won't qualify then right?


    Thanks
    SponsorGate


    No I dont think you will, we are in the same boat


  • Moderators, Sports Moderators Posts: 24,341 Mod ✭✭✭✭CramCycle


    john_this wrote: »
    Hi All,

    I would really appreciate if anybody had some thoughts on the requirement that you "live in the property for a minimum of 5 years". I have thrown out some scenarios below where circumstances change after receiving the rebate, which may unfairly require you to repay up to €20k. Has anybody heard of case-by-case exceptions?

    1) You lose your job and are required to sell/downgrade
    2) Your salary is decreased and need to rent 2 rooms to afford to repay mortgage
    3) You become divorced and need to sell or rent the property
    4) Your employer requires you to work abroad in a different office for 2+ years (ultimatum) as there is no longer work in the Irish office, and you need to rent the property while abroad
    5) Your neighbour becomes really disorderly and there has been so many conflicts that you need to sell/move
    6) You fall in love with somebody who lives different part of the country and wants you to move in together (or the relationship ends)
    7) You die - would the rebate still be paid back by your family

    Thanks!

    Rent the rooms but keep a room for yourself, so you are an owner/occupier?


  • Registered Users Posts: 18,272 ✭✭✭✭Atomic Pineapple


    CramCycle wrote: »
    Rent the rooms but keep a room for yourself, so you are an owner/occupier?

    I don't think you can do that under the terms and conditions of the HTB agreement either.


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  • Registered Users Posts: 15 axlmac


    Have two quick questions for any HTB experts (!):

    1) Does anyone have a contact number for the Help to Buy Revenue team (or whoever handles HTB queries in Revenue?). I got onto a generic Revenue help desk but the service agents wasn't much help (to be polite) and just pointed me at the website

    2) Any returning emigrants out there? My wife & I moved back to Ireland in Dec 2017. I worked ~ 3 weeks in Dec 2017 & full time throughout 2018. I recently put a holding deposit on a HTB qualified house but have been told by Revenue that if I sign the contract before Jan 2019 I only qualify to apply for the tax I paid in TY 2017 i.e. my 3 weeks! I'm not normally a complainer but this seems a bit harsh considering we've already paid > 20k in tax year. Anyone with a similar experience? Anyone think it's worth challenging (either revenue or the builder solicitors to delay the contract) on?

    Cheers!


  • Registered Users Posts: 1,037 ✭✭✭conf101


    I'm not sure how successful you'd be challenging it. In order to claim for a particular year you need your P21 statement for that year, and you can't get that before the year ends. I can't see any way around that.


  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    I agree, you won't be able to claim for this year until next year, they don't compromise on certain things, it's just the way it is.


  • Registered Users Posts: 101 ✭✭loriexxx


    We have just been approved for help to buy. If the amount we are approved for is less the 5% of the property price ( it’s still under €20000) can we still get the help to buy and top it up along with our 5%


  • Registered Users Posts: 4,767 ✭✭✭GingerLily


    loriexxx wrote: »
    We have just been approved for help to buy. If the amount we are approved for is less the 5% of the property price ( it’s still under €20000) can we still get the help to buy and top it up along with our 5%

    It just means your help to buy will be that value (or 5%), not everyone claims the full amount!

    Not sure what you mean about topping it up? You'll need a deposit of 10% less your HTB amount.

    Does your developer accept HTB as part of your deposit? Not all do


  • Registered Users Posts: 1,137 ✭✭✭Glen_Quagmire


    Folks, we are approved for the full 20k for the HTB. We have an application code and an access code. When we log into Revenue we can see our approved application and the next part of the process to "claim".

    What do we do next? Do we proceed with the claim on Revenue or wait until contracts are signed first?


  • Registered Users Posts: 26,555 ✭✭✭✭Creamy Goodness


    Folks, we are approved for the full 20k for the HTB. We have an application code and an access code. When we log into Revenue we can see our approved application and the next part of the process to "claim".

    What do we do next? Do we proceed with the claim on Revenue or wait until contracts are signed first?

    In the next step you need to upload your contract with the builder and your full loan offer letter.


  • Registered Users Posts: 1,137 ✭✭✭Glen_Quagmire


    In the next step you need to upload your contract with the builder and your full loan offer letter.


    Cheers for that


  • Registered Users Posts: 1,137 ✭✭✭Glen_Quagmire


    After paying the initial booking deposit, the home buyer typically has about 21 days to sign the builders contracts and pay the remainder of the 10% deposit.

    Question is, does the remainder of the 10% deposit (or whatever you're approved up to) get taken directly from the HTB by the builder and the home buyer pays the surplus?

    For example, is this how it works on a house that is 400k;

    - Buyer puts down 10k booking deposit to secure a property
    - Builders solicitor sends contracts to buyers solicitor to sign and requests remainder of 10% deposit, in this case 30k
    - Buyer signs loan offer contract and house contract and attaches these documents to Revenue to proceed with the claim
    - Builder gets 20k directly from HTB through Revenue (if buyer is approved up yo 20k)
    - Buyer pays 10k surplus to builders solicitor to make up the 30k


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  • Registered Users Posts: 26,555 ✭✭✭✭Creamy Goodness


    Depends on the builder. Some take the HTB as part of the 10% some don’t.

    It should be stated in the contract, it was for mine.

    I paid 7 booking deposit, 17.9 HTB and paid the balance of 10.9 when when signing the contract. I’ve another 10% waiting to pay off at closing which I’ve held onto.

    They’ll require you to complete step two of the HTB on revenue to get the claim code and send them to the solicitor before they can claim the HTB rebate. You can only get these once you’ve uploaded your contract and your bank loan offer letter.


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