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

misstyc · 07-11-2020 3:23am

short answer - yes as long as its a new build with a qualifying developer.

until end-2021, you can claim the lower of 10% of the property price/30k as long as you've paid enough tax over 4 years to claim this much. any amount you contribute over this would thus lower the mortgage you need.

GingerLily · 07-11-2020 11:20am

arleitiss wrote: »

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?

The minimum LTV is 70%, so you must borrow/mortgage 70% of the price of the new build.

fitzparker · 09-11-2020 10:16am

Got the below on the 4th
"Your Help to Buy Claim has been verified by your solicitor or building contractor. Your HTB refund will issue in due course."

how long does it usually take to hit their account? do Revenue have to do checks etc on the Developer first

clayfarm1234 · 09-11-2020 9:04pm

Hi,

Me and my wife are expats and working in Ireland since 2 years, and have our initial HTB application approved. Some numbers below ->

Value of Property -> EUR 430K
Max. HTB which can be claimed -> EUR 30K
Eligible for HTB (based on working last 2 years) -> EUR 20K

We have enough savings to pay full deposit of 10% now - can we claim the HTB back next year so that our 3 years tax worth EUR 30K gets accumulated?

Thanks,

Renjit · 09-11-2020 9:47pm

clayfarm1234 wrote: »

Hi,

Me and my wife are expats and working in Ireland since 2 years, and have our initial HTB application approved. Some numbers below ->

Value of Property -> EUR 430K
Max. HTB which can be claimed -> EUR 30K
Eligible for HTB (based on working last 2 years) -> EUR 20K

We have enough savings to pay full deposit of 10% now - can we claim the HTB back next year so that our 3 years tax worth EUR 30K gets accumulated?

Thanks,

This is something you may have to agree with developer via solicitor. You should be able to claim for 3 years and provide 10% deposit all from savings for now.

clayfarm1234 · 10-11-2020 11:20pm

Renjit wrote: »

This is something you may have to agree with developer via solicitor. You should be able to claim for 3 years and provide 10% deposit all from savings for now.

Thanks for answering. Just wondering would this involve changing anything in the contract? or what exactly has to be agreed with the developer? that whether the HTB amount can be adjusted in the full price later on, and not on the deposit?

Renjit · 15-11-2020 1:34am

clayfarm1234 wrote: »

Thanks for answering. Just wondering would this involve changing anything in the contract? or what exactly has to be agreed with the developer? that whether the HTB amount can be adjusted in the full price later on, and not on the deposit?

Write to your solicitor, they can include these terms agreed with the builder solicitor. It should be fine. You will pay the entire 10% deposit from savings to the developer solicitor now. And when the house is near completion, you will provide them HTB code. After HTB claim they should reimburse you same amount earlier paid via savings account.

You may have to change the contract date to the year when you are going to create your HTB application.

The text says this:

Four year rule
You may have signed your contract to buy a new build or drew down the first part of your mortgage for a self build between 1 January and 31 March 2018. If so, you may select either the:
year of purchase to be the actual year you bought or built your home

previous year provided you make your application before 31 May 2019.

This will allow you to select the four year period which is of most benefit to you.

For example, if your contract or draw-down date is 2 February 2019, you may choose whether that took place in either 2018 or 2019. If you choose 2018, this will allow you to use your Income Tax and DIRT for the four years from 2014 to 2017. If you choose 2019, you can use the years from 2015 to 2018.

https://www.revenue.ie/en/property/help-to-buy-incentive/what-do-you-need-to-do-before-you-apply.aspx

SomeDude · 19-11-2020 9:57pm

Hi All, just hoping someone might be able to clarify a question. At the claim stage for a self-build, it asks you to enter the 'loan account details', so that the refund can be made to this account. They ask for the account holder's name, BIC and IBAN. My mortgage and current account are both AIB. I presume it's my current account details that I enter here at claim stage?

Thanks in advance :-)

Tipptatlers · 21-11-2020 6:55pm

Hi all. Looking at a new build. Mortgage approved for 270k. Builders quotes have come back with price of 375k. We have our own land valued at 70k. To be Eligible for HTB do they take into account buildings price of 375k plus 70k=445k therefore having to take out a mortgage at 70 percent of 445 which is 311,500 to be eligible for 30k or am I completely off track on how this works? I’ve a case raised with revenue on the same. Any advise greatly welcomed

brisan · 24-11-2020 8:11pm

Tipptatlers wrote: »

Hi all. Looking at a new build. Mortgage approved for 270k. Builders quotes have come back with price of 375k. We have our own land valued at 70k. To be Eligible for HTB do they take into account buildings price of 375k plus 70k=445k therefore having to take out a mortgage at 70 percent of 445 which is 311,500 to be eligible for 30k or am I completely off track on how this works? I’ve a case raised with revenue on the same. Any advise greatly welcomed

Must be some house and some finish for 375k
That will get you a 250sq mt excellent finish build according to this
https://selfbuild.ie/construction/build-cost-estimator/
Good luck with the build

harjeet · 30-11-2020 12:05pm

Did any body got this issue sorted? if so please let me know how did you get it sorted.

We cannot complete your request because our records show that your personal details need to be updated. Please telephone your local Revenue office or contact us through myEnquires. Please quote rule 1.

Markitron · 30-11-2020 1:35pm

This is probably a stupid question but how soon can you do a tax return on the previous year? Can you go in and do it on January 1st? I assume I have to re-apply for the HTB scheme early next year.

Pete123456 · 30-11-2020 1:37pm

Markitron wrote: »

This is probably a stupid question but how soon can you do a tax return on the previous year? Can you go in and do it on January 1st? I assume I have to re-apply for the HTB scheme early next year.

I’m interested in this too - I really don’t have much faith in revenues system seen as they couldn’t generate Employee Detail Summaries the other day.

Also, is it better to have cancelled the 2019 application before year end so that there’s no chance it’ll hold everything up?

DubLad69 · 05-12-2020 1:19am

I'm in a bit of a predicament with the HTB and looking for help. I know that you need 70% of your house price to be mortgaged in order to obtain the HTB. But our maximum mortgage that we could get required is to put 30.1 percent up ourselves (which we have managed to get up thanks to family). But that would mean that we are only putting down 69.99% and wouldn't be eligible for HTB and so won't be able to buy the house.

Any suggestions for possible remedies?

stesaurus · 05-12-2020 1:25am

DubLad69 wrote: »

I'm in a bit of a predicament with the HTB and looking for help. I know that you need 70% of your house price to be mortgaged in order to obtain the HTB. But our maximum mortgage that we could get required is to put 30.1 percent up ourselves (which we have managed to get up thanks to family). But that would mean that we are only putting down 69.99% and wouldn't be eligible for HTB and so won't be able to buy the house.

Any suggestions for possible remedies?

Some extras in a new build aren't included in the mortgage. They can be paid as part of the closing in full. So maybe ask for something to be removed from the build, maybe even the kitchen? Get that put in afterwards.

DubLad69 · 05-12-2020 2:13am

stesaurus wrote: »

Some extras in a new build aren't included in the mortgage. They can be paid as part of the closing in full. So maybe ask for something to be removed from the build, maybe even the kitchen? Get that put in afterwards.

Thanks, we were thinking that, but thought it might be something that developers wouldn't be willing to do. Or might be illegal.

Its going to be on our mind all weekend until we can't talk to the estate agent or our solicitors.

beefyor1983 · 07-12-2020 12:50am

Hi is statement of liability produced automatic. I want to include 2020 in my help to buy. My wife and I will both have our years full tax submitted online by 18th December by our works. Someone stated that I won't receive a statement of liability until late January when revenue review my tax. My contractor has stated they want 10% by 22nd but I might not even have statement of liability then if they have to review it.

Renjit · 07-12-2020 2:30am

beefyor1983 wrote: »

Hi is statement of liability produced automatic. I want to include 2020 in my help to buy. My wife and I will both have our years full tax submitted online by 18th December by our works. Someone stated that I won't receive a statement of liability until late January when revenue review my tax. My contractor has stated they want 10% by 22nd but I might not even have statement of liability then if they have to review it.

Yeah, it will be available late January.

Len_007 · 09-12-2020 8:57pm

fitzparker wrote: »

Got the below on the 4th
"Your Help to Buy Claim has been verified by your solicitor or building contractor. Your HTB refund will issue in due course."

how long does it usually take to hit their account? do Revenue have to do checks etc on the Developer first

Did it come through for you yet? How long were you waiting?

memomtoo · 15-12-2020 12:44am

can a second time buyer get Help to buy scheme in 2021?
first property is a used one, if this time we wish to buy brand new?any one know if there is any exceptions?

G_R · 15-12-2020 12:55am

memomtoo wrote: »

can a second time buyer get Help to buy scheme in 2021?
first property is a used one, if this time we wish to buy brand new?any one know if there is any exceptions?

No, HTB is for first time buyers only.

memomtoo · 15-12-2020 12:57am

anything to replace? it is really a pain to find them so expensive.

due to struggling with current property we wanted to get something to live with peace.
also what circumstances, can we get 90% as exception for second time?

Creamy Goodness · 15-12-2020 8:01am

The help to buy was introduced to encourage builders and developers to build more houses as we’ve a massive shortage in Ireland. Encouraging people to buy second hand homes doesn’t encourage building.

There are two types of exemptions for mortgages:

Loan to income (LTI) - by far the most common, it allows the bank to offer you more than 3.5 times your salary to a max of 4.5 times (heard some stories of people getting 5 times but super rare). This is a central bank rule so all banks must adhere to it.

Loan to value (LTV) - this allows the banks to offer you up to 90% of the purchase price if you pass their criteria for an exemption. Every banks criteria is different.

GingerLily · 15-12-2020 8:40am

Creamy Goodness wrote: »

The help to buy was introduced to encourage builders and developers to build more houses as we’ve a massive shortage in Ireland. Encouraging people to buy second hand homes doesn’t encourage building.

There are two types of exemptions for mortgages:

Loan to income (LTI) - by far the most common, it allows the bank to offer you more than 3.5 times your salary to a max of 4.5 times (heard some stories of people getting 5 times but super rare). This is a central bank rule so all banks must adhere to it.

Loan to value (LTV) - this allows the banks to offer you up to 90% of the purchase price if you pass their criteria for an exemption. Every banks criteria is different.

The LTV rule is also a CBI rule, banks can decide who gets the exemption but only a certain proportion of business can break it etc.

memomtoo · 15-12-2020 11:44am

Really wondering what exceptional cases involved...
like we are mint payers, no debts in life.
been saving from ages but the prices are going so high that no matter how much, it sounds like its not enough at all.

if both salaries go above 80k gross, can pay without issues-what more they will look into?

getting a brand new without help to buy could be tough to consider but if anything else strikes at least, we could try.

It funny we had zero vacations from 3years for sake of saving

memomtoo · 15-12-2020 11:44am

and most of banks want 6months statements is it?

Markitron · 15-12-2020 11:48am

memomtoo wrote: »

and most of banks want 6months statements is it?

Yes

Antares35 · 15-12-2020 11:49am

Can we apply for HTB before we have mortgage approval?

memomtoo · 15-12-2020 11:49am

and to calculate a rough estimate, each shows different estimations.

but for example, if we need something valued 370k, how much of deposit to keep?

Markitron · 15-12-2020 11:49am

Antares35 wrote: »

Can we apply for HTB before we have mortgage approval?

Yes, you can apply for it whenever you want. The only thing you have to do to apply is a tax return for the previous 4 years. At this point you are obviously better off waiting till 2020 as approval runs out at the end of the year.

memomtoo wrote: »

and to calculate a rough estimate, each shows different estimations.

but for example, if we need something valued 370k, how much of deposit to keep?

Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.

memomtoo · 15-12-2020 11:54am

oh! not confident as we are second time buyers but didn't buy a brand new last time. now really looking for one

Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.[/QUOTE]

Antares35 · 15-12-2020 11:56am

Markitron wrote: »

Yes, you can apply for it whenever you want. The only thing you have to do to apply is a tax return for the previous 4 years. At this point you are obviously better off waiting till 2020 as approval runs out at the end of the year.

Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.

Do you mean, our taxes in respect of 2017-2020 inclusive? Thank you

jimmy86 · 15-12-2020 11:58am

memomtoo wrote: »

and to calculate a rough estimate, each shows different estimations.

but for example, if we need something valued 370k, how much of deposit to keep?

As a second time buyer you need a 20% deposit, so €74k, banks can give an exemption to have this reduced to 10%, not sure what criteria you have to meet however. You would also have stamp duty (€3700), legal fees etc.

memomtoo · 15-12-2020 12:25pm

Also forgot the check,

Just incase we like a property that might be old and we need renovations to do.

example: property worth 320k, needed 40k renovation works inside then it has to be from our pockets is it? bank cannot consider that?

Markitron · 15-12-2020 12:33pm

Antares35 wrote: »

Do you mean, our taxes in respect of 2017-2020 inclusive? Thank you

Yes, if you are applying for HTB 2021, you need tax returns for 2017, 2018, 2019 and 2020.

Actually you may not need them all, the max you can get is 30k so if you paid 30k tax in 2020 and 2019 alone you wouldn't have to bother including the other years in your application.

memomtoo wrote: »

oh! not confident as we are second time buyers but didn't buy a brand new last time. now really looking for one

Assuming you qualified for the HTB full amount, you would need 7k of a deposit. Obviously this doesn't include legal fees etc.

[/QUOTE]

Based on what you are saying, you definitely will not qualify for HTB. Both applicants can not have ever had a mortgage before and the house must be new.

Creamy Goodness · 15-12-2020 1:06pm

memomtoo wrote: »

Also forgot the check,

Just incase we like a property that might be old and we need renovations to do.

example: property worth 320k, needed 40k renovation works inside then it has to be from our pockets is it? bank cannot consider that?

Banks will only allow you to mortgage based on the house price. you'll have a hard time getting them to give money for renovations. Unfortunately these are the types of things that got Ireland in trouble in the last crash (along with 100% mortgages etc.). Banks are - and imo rightly so - more cautious.

memomtoo · 15-12-2020 1:39pm

aah makes sense.....

but for people who are seriously trying best to save as much as possible and the rules sound so hard now, deposit percent is really tough to make and moreover if brand new doesn't work, then at least do some renovations with old one

Jasna1982 · 15-12-2020 8:54pm

memomtoo wrote: »

aah makes sense.....

but for people who are seriously trying best to save as much as possible and the rules sound so hard now, deposit percent is really tough to make and moreover if brand new doesn't work, then at least do some renovations with old one

You can apply for a deposit exemption (LTV) with the bank, where you will only need to have 10 instead of 20%.

But you don’t qualify for the HTB scheme

memomtoo · 15-12-2020 8:59pm

Jasna1982 wrote: »

You can apply for a deposit exemption (LTV) with the bank, where you will only need to have 10 instead of 20%.

But you don’t qualify for the HTB scheme

That is a definite goal as it sounds so hard to make so much money upfront but yes affordable to pay
But im yet trying to search on checklist to tick beforehand so carefully want to be eligible for it.

memomtoo · 15-12-2020 8:59pm

If anyone has an idea on how exemptions work
Please post here
As long as it’s possible

Markitron · 16-12-2020 10:33am

memomtoo wrote: »

If anyone has an idea on how exemptions work
Please post here
As long as it’s possible

I'm not sure if you mean LTI or LTV exemptions, but the basic concept is essentially the same. They all depend on your disposable income and any loans/children you have. The more money you have and the less outgoings the better.

Every bank has their own rules as to who qualifies. If you are certain that you need one, you will probably be better off talking to a broker who may be able to point you in the right direction.

jojomaniakos · 27-12-2020 7:36pm

Hello, I know that HTB scheme requires the minimum loan to value to be at 70%. Does anyone know if there are any limitations on repaying a part of the loan early after closing? For example, if someone was able to come up with 5%-10% more within the first year, could they start with a variable rate on the loan to freely overpay with a lump sum? Would that violate any HTB scheme rules? Thanks!

memomtoo · 27-12-2020 7:43pm

Can i know if its a brand new property
Example a 3 bed costing 380k
What minimum amount extra we need for any utilities or flooring or whatever that builders not include in brand new construction?

memomtoo · 27-12-2020 7:45pm

If its a used property
Anyone have an idea if you did such works
Like if its an average 4bed house
If we need new flooring on ground floor
Windows brand new
Bathrooms tiling and any new essentials etc.,
In understand depends but for changing minimum things to make it look finer?

misstyc · 27-12-2020 9:22pm

memomtoo wrote: »

Can i know if its a brand new property
Example a 3 bed costing 380k
What minimum amount extra we need for any utilities or flooring or whatever that builders not include in brand new construction?

This should give you a guide, obviously the cost can only go up based on the type of floor etc

http://blog.tradesmen.ie/2020/01/laminate-flooring-price-survey-2020/

For white goods it depends on what you want obviously you could spend a small fortune on this stuff

Gardesana Pecher · 27-12-2020 9:31pm

Markitron wrote: »

Based on what you are saying, you definitely will not qualify for HTB. Both applicants can not have ever had a mortgage before and the house must be new.

Depends if they have bought in Ireland. They could have a property abroad with mortgage payments coming from a foreign bank account. They can still get HTB if it's not showing here.

sparkle109 · 29-12-2020 1:27am

Hi all
We have been approved for HTB and paid a partial deposit on a new build. The house won’t be ready until July 2022 so while we have approval in principle we haven’t progressed it. We have just got the signed contracts back from the builder, and want to claim the HTB now. Is approval in principle enough or is a formal offer letter needed?
Thanks for any tips

sparkle109 · 29-12-2020 1:30am

Hi all
We have been approved for HTB and paid a partial deposit on a new build. The house won’t be ready until July 2022 so while we have approval in principle we haven’t progressed it. We have just got the signed contracts back from the builder, and want to claim the HTB now. Is approval in principle enough or is a formal offer letter needed?
Thanks for any tips

Creamy Goodness · 29-12-2020 1:41pm

sparkle109 wrote: »

Hi all
We have been approved for HTB and paid a partial deposit on a new build. The house won’t be ready until July 2022 so while we have approval in principle we haven’t progressed it. We have just got the signed contracts back from the builder, and want to claim the HTB now. Is approval in principle enough or is a formal offer letter needed?
Thanks for any tips

Signed contract by both parties and formal offer letter (including address of the property) is required

It would be open for abuse if only AIP letter was required.

sparkle109 · 29-12-2020 2:03pm

Thank you! We have the signed contracts but didn’t progress to final offer letter at the time as we knew we would have to reapply in 2021. Will look into progressing and getting that now.

Creamy Goodness wrote: »

Signed contract by both parties and formal offer letter (including address of the property) is required

It would be open for abuse if only AIP letter was required.

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

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