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11-10-2016, 17:03   #1
PedroDublin
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2017/18 help to buy scheme - megathread. All help to buy discussion here please

Hello everyone, what do you think the purchase date mean on the new help to buy scheme? Contracts signed by buyers, contracts received, mortgage withdrawal, closing date..... I have seen different things on different news

Last edited by The_Conductor; 20-08-2018 at 19:32.
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11-10-2016, 17:07   #2
Atlantic Dawn
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If you signed after July 19th you qualify, house has to be newly built...

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The Scheme will apply to the purchase of newly built primary residences by first-time buyers from 19 July this year until the end of 2019.
http://www.rte.ie/news/budget-2017/2...t-time-buyers/
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11-10-2016, 17:10   #3
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Has anyone more detail on the pro rata rates for lower priced homes?
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11-10-2016, 17:13   #4
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11-10-2016, 17:19   #5
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It's a min 80% LTV
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11-10-2016, 17:19   #6
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It's at least 80% LTV mortgage, if you had enough savings to buy a house with a deposit of over 20% then in their eyes you don't need a hand.
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11-10-2016, 17:21   #7
Arbie
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Originally Posted by PedroDublin View Post
Hello everyone, what do you think the purchase date mean on the new help to buy scheme? Contracts signed by buyers, contracts received, mortgage withdrawal, closing date..... I have seen different things on different news
From the budget examples:

"Example 7
Tom and Mary signed a contract to purchase a newly built home off the plans in May 2016. Neither
of them have purchased a property before. They paid the deposit on the house at the time of
contract signing but the developer is still constructing the estate and they have not moved into
their new home. As they signed the contract to purchase their property prior to 19 July 2016, they
will not qualify for the Help to Buy incentive."

Looks like it is the date that the buyers sign the contract.
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11-10-2016, 18:51   #8
sevg
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I assume this scheme will also work if you plan to build your own house and not just buy one in a development. Also is it 20%deposit needed if accepting the rebate regardless of the cost of the house? As with the CB rules its 10% deposit up to about €220,000.
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11-10-2016, 19:02   #9
RandomAccess
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Quote:
Originally Posted by Arbie View Post
From the budget examples:

"Example 7
Tom and Mary signed a contract to purchase a newly built home off the plans in May 2016. Neither
of them have purchased a property before. They paid the deposit on the house at the time of
contract signing but the developer is still constructing the estate and they have not moved into
their new home. As they signed the contract to purchase their property prior to 19 July 2016, they
will not qualify for the Help to Buy incentive."

Looks like it is the date that the buyers sign the contract.
Hey,
Where did you get that example? link?
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11-10-2016, 19:19   #10
Arbie
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Originally Posted by sevg View Post
I assume this scheme will also work if you plan to build your own house and not just buy one in a development. Also is it 20%deposit needed if accepting the rebate regardless of the cost of the house? As with the CB rules its 10% deposit up to about €220,000.
Self-builds are covered under the scheme. At least 80% of cost must be financed by mortgage Edit: At least 80% loan to value.

I don't know about the other questions.

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Hey,
Where did you get that example? link?
From the Department of Finance website: http://www.budget.gov.ie/Budgets/201...20Measures.pdf

Last edited by Arbie; 11-10-2016 at 21:46.
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11-10-2016, 19:37   #11
cronos
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Quick question, not sure of the maths on this example. Hoping someone might be able to work it out. Figures are made up for the purpose of simplifying the maths.

So say a first-time buyer is looking to buy a new build house for sale at 400k and has savings of 300k. They could look to get a mortgage of approx 120k to cover the amount not covered by savings and enough to lay floors and buy furniture etc...

However, with this new rule, they will get nothing as their loan to value is not less than or equal to the 80 percent.

What if instead, they choose not to use all their savings to buy the house, so invest (80k) in the mortgage thus matching the 80 percent Loan To Value rule. Then accelerating their payments with the rest of the savings that they could have just put in initially.

The questions are:

1. Do you think this still meets the criteria?
2. Are they going to end up paying more to the bank in additional mortgage interest than you save in the tax rebate?
3. Any issues you could foresee in accelerating mortgage payments? Will this acceleration reduce the APR being paid or will the bank take into account the savings when calculating the APR?
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11-10-2016, 19:48   #12
CT2
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You must have a mortgage of 80% LTV or higher. If you have a less LTV then you don't qualify.
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11-10-2016, 19:51   #13
cronos
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You must have a mortgage of 80% LTV or higher. If you have a less LTV then you don't qualify.
I'm aware of that rule that's not the question in the example. If that was directed at my example, not sure it was.
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11-10-2016, 19:53   #14
Spanish Eyes
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FTBs buying a new build for 600k?

Why would they qualify? I know it's restricted but still....

I though this was for "ordinary mortals". LOL.
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11-10-2016, 19:55   #15
cronos
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Quote:
Originally Posted by Spanish Eyes View Post
FTBs buying a new build for 600k?

Why would they qualify? I know it's restricted but still....

I though this was for "ordinary mortals". LOL.
It's to get new houses built rather than people just purchasing existing houses.
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