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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: 17 Paddy1404


    Hi All. First time poster. Decided to sign up as finally completed the HTB process for a self build and money was deposited to my account yesterday. Read a lot of the posts here to help me out so if anyone has any questions about the HTB for a self build just let me know and I'll do my best to answer.


  • Registered Users Posts: 6 siliconebarbie


    Hi Paddy,

    Congratulations that's fantastic! We are just at the claim stage now, I'm currently waiting for a call back from Revenue as two ladies today were unable to answer my questions, perhaps you know the answer as you have just completed this yourself.

    Q. What documents do I need to upload? ( I think... copy of contract with builder and copy of Letter of Loan Offer from the bank?)

    Q2. What 'purchase price' do I enter? We are doing a self build so is this the estimated completion value as per banks valuation?

    I'd greatly appreciate any information you might have!

    Thanks


  • Registered Users Posts: 17 Paddy1404


    Hi Paddy,

    Congratulations that's fantastic! We are just at the claim stage now, I'm currently waiting for a call back from Revenue as two ladies today were unable to answer my questions, perhaps you know the answer as you have just completed this yourself.

    Q. What documents do I need to upload? ( I think... copy of contract with builder and copy of Letter of Loan Offer from the bank?)

    Q2. What 'purchase price' do I enter? We are doing a self build so is this the estimated completion value as per banks valuation?

    I'd greatly appreciate any information you might have!

    Thanks

    Hey

    No problem. I rang revenue several times and couldn't get any answers from them.

    I uploaded the contract signed by myself and builder, mortgage offer letter and a letter from our mortgage advisor confirming we have drawn down the first stage payment.

    For the purchase price I put the value on completion that you mentioned.

    Put in my bank account details and once my solicitor verified the claim the money was in my account after 4 days.

    Cheers
    Patrick


  • Registered Users Posts: 4 RachelMcC27


    Hi all,

    Hoping someone can help me out. Apologies if this question has been asked a million times on this thread, I am new to boards.ie and there are a lot of pages to go through, so said it would be easier to post my own!

    Myself and my partner are looking to apply for the HTB this month. Just awaiting our Form 12's and our 2017 P60's (which will hopefully come through end of Jan)

    I was just wondering while we are waiting, is there any way to work out the amount that we might potentially get? We have both paid tax for 3 out of the last 4 years. This might be completely wrong, but is it as simple as adding up the amount of PAYE tax we paid per year and multiplying it by the amount of years. i.e. we both paid within 20% tax threshold in 2015, 2016 and 2017. This works out at €3,300 annually per person. Am i right in saying, if we multiple the €3,300 by the 3 years, and then x 2 (as we are both applying) that will be the approx. amount we can claim back? Total of €19,800 or there bouts? (or the equivalent of being eligible for the full 5% of house priced @ €320,000)

    I have a feeling I have this all wrong as it seems a bit too good to be true! If anyone has any knowledge on how it works, or can share from their own experience - I would really appreciate it!

    Thanking you in advance,
    Rachel


  • Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    Rachel, if you earned €33,000 last year you paid 3,300 in income tax. This is the allowable amount (along with any DIRT paid) to use for the HTB scheme. So if you both earned that and paid that in tax over the last 3 years, you would indeed qualify for €19,800 for the deposit, however this would be for a house of price €396k or greater. 5% of €320k would be €16,000 and any amount of tax paid above that wouldn't count towards the allowable amount under the scheme.

    Also keep in mind if it is a 320k property you are going for, you will need another 16k to make up a deposit of 10% plus another ~5k to cover legal fees, engineers fees, stamp duty, etc. Also 320k for a new property may not include VAT so you have to factor in another 13.5% onto the price.


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  • Registered Users Posts: 4 RachelMcC27


    Michael, thanks a million for the response!

    Ok, so my knowledge on income tax is obviously dire... The €3,300 annually per person is made up of employee tax credit and personal tax credit (each amount to €1,650 - €3,300 in total) and as far as I can see on my Revenue account, this is within the 20% tax threshold? The €3,300 is not as a result of earning €33,000 each year, we are both actually earning approx. €29K annually. (both due wage increases this month but that's irrelevant for this as we will be applying as soon as possible)

    Is the PAYE tax that we can claim made up of both the employee tax credit and the personal tax credit? (Again apologies, tax is not my thing!)

    Thanks for that! Yes, so €16K would be the max we could claim based on purchasing a house worth €320,000 as it's 5% of house price. The question is would we even be eligible for that amount though based on our income tax combined?
    We have approx. €25K saved ourselves between the two of us, so would just be nice to know how much more we can accumulate with the HTB. It would be great to get up to the €32K mark, as that would be the 10% deposit done and dusted! We do have family that can gift, i.e for furnishing, legal fees etc. but I would rather minimize the amount we need to borrow where possible.

    First time buyer going in completely blind - I am sure this is only the beginning of the fun that's to come!! :)

    Cheers,
    Rachel


  • Registered Users Posts: 28 mick2311


    Michael, thanks a million for the response!

    Ok, so my knowledge on income tax is obviously dire... The €3,300 annually per person is made up of employee tax credit and personal tax credit (each amount to €1,650 - €3,300 in total) and as far as I can see on my Revenue account, this is within the 20% tax threshold? The €3,300 is not as a result of earning €33,000 each year, we are both actually earning approx. €29K annually. (both due wage increases this month but that's irrelevant for this as we will be applying as soon as possible)

    Is the PAYE tax that we can claim made up of both the employee tax credit and the personal tax credit? (Again apologies, tax is not my thing!)

    Thanks for that! Yes, so €16K would be the max we could claim based on purchasing a house worth €320,000 as it's 5% of house price. The question is would we even be eligible for that amount though based on our income tax combined?
    We have approx. €25K saved ourselves between the two of us, so would just be nice to know how much more we can accumulate with the HTB. It would be great to get up to the €32K mark, as that would be the 10% deposit done and dusted! We do have family that can gift, i.e for furnishing, legal fees etc. but I would rather minimize the amount we need to borrow where possible.

    First time buyer going in completely blind - I am sure this is only the beginning of the fun that's to come!! :)

    Cheers,
    Rachel

    You need to be looking at the tax paid figure for your p21 for a specific year. If you are each earning 29k the income tax for that year is likely to be 2500 each so the most you are looking at is 15k in your scenario.

    The other issue you have is that in order to buy a house worth 320000 with a 32000 deposit you would need combined income of 83k to fall within the central Banks lti 3.5x limit


  • Registered Users Posts: 195 ✭✭Aaron15


    Paddy1404 wrote: »
    Hey

    No problem. I rang revenue several times and couldn't get any answers from them.

    I uploaded the contract signed by myself and builder, mortgage offer letter and a letter from our mortgage advisor confirming we have drawn down the first stage payment.

    For the purchase price I put the value on completion that you mentioned.

    Put in my bank account details and once my solicitor verified the claim the money was in my account after 4 days.

    Cheers
    Patrick

    Hi paddy, I'm putting in a claim for my HTB, my contracts are ready to be signed and the builder wants the 10% of the houses value, if I give him the 10% can I still claim the 5% back off the revenue even after I've paid the 10%? Sorry if I'm not making sense that's a lot of percentages, what I'm worried about is giving him the full deposit, then putting in a claim for my HTB and not being able to actually get the 5% back cause I've already paid it.


  • Registered Users Posts: 4 RachelMcC27


    mick2311 wrote: »
    You need to be looking at the tax paid figure for your p21 for a specific year. If you are each earning 29k the income tax for that year is likely to be 2500 each so the most you are looking at is 15k in your scenario.

    The other issue you have is that in order to buy a house worth 320000 with a 32000 deposit you would need combined income of 83k to fall within the central Banks lti 3.5x limit

    Hi,

    Oh right ok, I would actually be delighted with 15K so that’s still good news!

    Yes, we have already spoken with the bank re lending percentage based on our circumstances. With both our wage increases this month, and the help of a small exception to the lending criteria, they are happy to put an application through for 90% of the purchase price of a house worth 320,000, so fingers crossed!

    Thanks for your help!

    Cheers,
    Rachel


  • Registered Users Posts: 5,245 ✭✭✭myshirt


    You are getting tax credits mixed up with your tax bill.

    The simple process for calculating your tax is Step One: Calculate Tax on your wages (29,000 X 20%), Step Two: Use tax credits to reduce tax bill (as you say, you have 3,300 in tax credits, so basically that knocks 3,300 off your tax bill)

    End result: tax due is 5,800, less credits of 3,300, means you paid 2,500 as another poster pointed out.

    So going with that, if the both of you paid 7,500 each over the past 3 years, then basically you can claim whatever 5% of the value of any new build costing 0-300k is. For example if you buy one costing 200k together, you can claim 10k back. If you buy one costing 300k together, you can claim 15k. And if you buy one costing 400k, you can claim 15k also. Remember, as you haven't paid more tax than that over the past few years, 15k is all that's there for the taking.


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  • Registered Users Posts: 17 Paddy1404


    Aaron15 wrote: »
    Hi paddy, I'm putting in a claim for my HTB, my contracts are ready to be signed and the builder wants the 10% of the houses value, if I give him the 10% can I still claim the 5% back off the revenue even after I've paid the 10%? Sorry if I'm not making sense that's a lot of percentages, what I'm worried about is giving him the full deposit, then putting in a claim for my HTB and not being able to actually get the 5% back cause I've already paid it.

    Hey Aaron

    Are you self building or buying a new build off a developer?


  • Registered Users Posts: 4 RachelMcC27


    myshirt wrote: »
    You are getting tax credits mixed up with your tax bill.

    The simple process for calculating your tax is Step One: Calculate Tax on your wages (29,000 X 20%), Step Two: Use tax credits to reduce tax bill (as you say, you have 3,300 in tax credits, so basically that knocks 3,300 off your tax bill)

    End result: tax due is 5,800, less credits of 3,300, means you paid 2,500 as another poster pointed out.

    So going with that, if the both of you paid 7,500 each over the past 3 years, then basically you can claim whatever 5% of the value of any new build costing 0-300k is. For example if you buy one costing 200k together, you can claim 10k back. If you buy one costing 300k together, you can claim 15k. And if you buy one costing 400k, you can claim 15k also. Remember, as you haven't paid more tax than that over the past few years, 15k is all that's there for the taking.

    Hi,

    Thanks for the breakdown and explanation, makes complete sense now!

    Cheers,
    Rachel


  • Registered Users Posts: 195 ✭✭Aaron15


    Paddy1404 wrote: »
    Hey Aaron

    Are you self building or buying a new build off a developer?

    Buying a new build from the developer, I haven't got my HTB yet but ready to sign contracts and they want the 10% , what I want to know is will I get 5% back even after I've given them the full 10%?


  • Registered Users Posts: 2,583 ✭✭✭cloneslad


    Aaron15 wrote: »
    Buying a new build from the developer, I haven't got my HTB yet but ready to sign contracts and they want the 10% , what I want to know is will I get 5% back even after I've given them the full 10%?

    No, it's paid directly to the builder. It doesn't have to be for the deposit so if you give them the 10% deposit now you can just give them the remaining 90% minus the amount the builder gets from your HTB grant.


  • Registered Users Posts: 195 ✭✭Aaron15


    cloneslad wrote: »
    No, it's paid directly to the builder. It doesn't have to be for the deposit so if you give them the 10% deposit now you can just give them the remaining 90% minus the amount the builder gets from your HTB grant.

    But if I do this, does this mean I will get it back at some stage? Or will it just come off the over all balance of the house.


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


    Aaron15 wrote: »
    But if I do this, does this mean I will get it back at some stage? Or will it just come off the over all balance of the house.

    You will never get the HTB amount and the builder won't refund you the 5% when they get the HTB.

    If you are planning on an LTV>85% then you'll need to use some of the HTB for your deposit.


  • Registered Users Posts: 2,583 ✭✭✭cloneslad


    Aaron15 wrote: »
    But if I do this, does this mean I will get it back at some stage? Or will it just come off the over all balance of the house.

    If, for example, your house is €400k and you qualify for the full 5% you'd be entitled to €20k from the HTB allowance.

    If you pay the full 10% deposit yourself and do not get the HTB sorted before then, the builder will claim it. This will mean the remainder owed to the builder would be €340k (€400k - 10% deposit - €20k HTB allowance).

    Your bank will pay you the amount you have been approved for, this will go to your solicitor. It would then be up to them to pay the monies owed (remainder to the builder / stamp duty etc) whatever is remaining would be your money.


  • Registered Users Posts: 195 ✭✭Aaron15


    cloneslad wrote: »
    If, for example, your house is €400k and you qualify for the full 5% you'd be entitled to €20k from the HTB allowance.

    If you pay the full 10% deposit yourself and do not get the HTB sorted before then, the builder will claim it. This will mean the remainder owed to the builder would be €340k (€400k - 10% deposit - €20k HTB allowance).


    Your bank will pay you the amount you have been approved for, this will go to your solicitor. It would then be up to them to pay the monies owed (remainder to the builder / stamp duty etc) whatever is remaining would be your money.

    Thank you, this clears up a lot. Thanks very much


  • Registered Users Posts: 6 siliconebarbie


    Hi Patrick , thanks for the reply I really appreciate it as I've been unable to get a helpful answer via the Revenue helpline!

    Can I also ask, were you advised that that you had to show proof of mortgage drawn down in order to receive the rebate? I've read this in the HTB FAQ document but this has confused me as we presumed we would use our HTB rebate as part of our deposit, which will in turn be used for the first payment to our contractor and therefore we will not be drawing down mortgage until our funds, including HTB rebate, have been used. Our bank don't seem to know either?!

    Any insight would be greatly appreciated

    Thanks


  • Moderators, Society & Culture Moderators Posts: 7,223 Mod ✭✭✭✭Michael D Not Higgins


    Hi,

    Oh right ok, I would actually be delighted with 15K so that’s still good news!

    Yes, we have already spoken with the bank re lending percentage based on our circumstances. With both our wage increases this month, and the help of a small exception to the lending criteria, they are happy to put an application through for 90% of the purchase price of a house worth 320,000, so fingers crossed!

    Thanks for your help!

    Cheers,
    Rachel

    How much of an increase are you expecting? Even if you both got very generous 10% salary increases, with a 10% deposit you'd still be above the exception threshold that the banks give out.

    I don't want to burst your bubble but you might want to temper your expectations. The mortgage salespeople in the banks are much more generous than the bank underwriters, take their word with a grain of salt.


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  • Registered Users Posts: 2 Mia2018


    Hi our help to buy was approved on 22nd December and it said it would take 5 working days. I'm just wondering if anyone else was approved on the same day and if they have received their funds as we haven't.


  • Banned (with Prison Access) Posts: 670 ✭✭✭sightband


    Mia2018 wrote: »
    Hi our help to buy was approved on 22nd December and it said it would take 5 working days. I'm just wondering if anyone else was approved on the same day and if they have received their funds as we haven't.

    today is only the sixth working day since that date and unless you are a self build funds are issued to developer, not you so how would you know it hasn’t been paid...time of year, backlogs, people off til next week and it is only the sixth day so i’d just say relax, especially if it’s been approved.


  • Registered Users Posts: 2 Mia2018


    Ya we are self build. Our solicitor thought it should have been paid by now and that's why I started to wonder.


  • Registered Users Posts: 146 ✭✭Belt


    For a self build, at what stage do you apply and receive the HTB grant?

    Not building yet but I'm just thinking ahead to the 31st Dec 2019 deadline - what would I need to have in place on that date re mortgage, builders etc to qualify for the grant?


  • Registered Users Posts: 5,882 ✭✭✭tusk


    FYI...

    We reapplied for the HTB on Jan 1st and had the reapproval by Jan 2nd.


  • Registered Users Posts: 299 ✭✭cardinal tetra


    How do i know what builders are doing this scheme?

    Who do i go to? If i was looking in greystones, wicklow or south county dublin is there a list or a programme that shows what schemes are coming on board or new houses being built.

    Short: whos building houses where?

    Many thanks


  • Banned (with Prison Access) Posts: 670 ✭✭✭sightband


    How do i know what builders are doing this scheme?

    Who do i go to? If i was looking in greystones, wicklow or south county dublin is there a list or a programme that shows what schemes are coming on board or new houses being built.

    Short: whos building houses where?

    Many thanks

    here’s the qualifying developer list

    https://www.revenue.ie/en/property/documents/htb-qualifying-contractors.pdf

    there is no central list of new developments and qualifying contractors just myhome, daft, estate agents and developer sites with upcoming/current projects.


  • Registered Users Posts: 2,240 ✭✭✭MayoSalmon


    tusk wrote:
    We reapplied for the HTB on Jan 1st and had the reapproval by Jan 2nd.


    Revenue looking for P60 details/figures for 2017 which I don't know.

    What did you fill in for these?


  • Registered Users Posts: 5,882 ✭✭✭tusk


    MayoSalmon wrote: »
    Revenue looking for P60 details/figures for 2017 which I don't know.

    What did you fill in for these?

    We just didn't use 2017 as one of the tax years in the application, so then they won't look at it. We were ok with just a few of the other years thankfully.


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  • Moderators, Sports Moderators Posts: 24,337 Mod ✭✭✭✭CramCycle


    MayoSalmon wrote: »
    Revenue looking for P60 details/figures for 2017 which I don't know.

    What did you fill in for these?

    If your a PAYE employee, and you have only been employed by one employer in 2017, most of the numbers, if not all should be on your last paycheque for the year.


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