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.

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

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