So much changed for mortgage holders in the April 2009 emergency Budget. Many who previously had mortgage interest relief lost it, and for others the amount they received changed.

We have already looked at eligiblility in a previous post (Here). Once you have checked that you are eligible, the next step is to see if you are deemed as a first time buyer or not a first time buyer. This has a huge effect on the amount of interest relief you could receive, so make sure you know the difference!

Am I a first time buyer (FTB)?

Higher rates of mortgage interest relief are available for homeowners who are classified by Revenue as first time buyers (FTB). This term can be quite ambigious – lets look at some examples of who are first time buyers and you will see what we mean.

Example 1: Simple example

Des bought a home in 2005 on his own and has never previously had a mortgage. Yes, Des is a first time buyer.

Example 2: Moving house

Schanelle bought a home in 2005 on her own and has never previously had a mortgage. In 2008 she moved house. Schanelle is still considered a first time buyer. It doesn’t matter how many times Schanelle moves house as she will still receive first time buyer mortgage interest relief for 7 years from the date of her first mortgage.

Example 3: Different FTB status for couples

In this example, Schanelle bought the second house in 2008 with her partner Dave. Dave had never previously had a mortgage and is considered a first time buyer. So Dave will receive first time buyer mortgage interest relief for 7 years from 2008 until 2015, 3 years after Schanelle loses her first time buyer status in 2012.

Example 4: Previous Investment property

Niamh bought a house in 2005 as an investment property. As such, she was not eligible for mortgage interest relief, as it was not her home. In 2008 she bought an apartment as a home. Niamh is considered a first time buyer. She will receive first time buyer mortgage interest relief for 7 years from the date of her first mortgage on her home.

Example 5: Previous mortgage abroad

Frances moved from the UK to Ireland in 2005 and bought a new home. She had previously had a mortgage on a home in the UK for 15 years. Frances is considered a first time buyer for 7 years from 2005, as homes abroad are not taken into account when deciding your Irish first time buyer status.

Finally

If you are not sure if you are a first time buyer or not, get in touch with the Revenue TRS section in Limerick.  They are very good to deal with.

If you would like professional help in this matter, you can contact us here in Red Oak Tax Refunds, where we are also very helpful and friendly!