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Tax Relief

Relief is available in respect of interest paid on a mortgage or loan acquired to purchase repair or improve a main residence.

-
Single
Widowed
Married
-
First Mortgage
4000
8000
8000
years1 to 7
Others
3175
5079
5079
-

Relief is given at the standard rate of tax

For example a single person with interest payments in year one of €4000 or more would obtain interest relief of €800 (4000* 20%)

To calculate mortgage interest tax relief for your mortgage please click here.

From 1 January 2002 tax relief for home mortgage interest is no longer given through the tax system, but instead is granted at source. This means that your tax relief element on the mortgage interest is "built into" the monthly mortgage repayment. For most lenders this is shown in two separate items on your bank account statement. First you will see the direct debit for the monthly mortgage payment and next to it you should see a corresponding credit for the tax relief on the interest.

The interest relief amount is calculated on an annual basis to reflect the reduced interest as your mortgage amount decreases. The lender will then calculate the mortgage interest relief and apportion that over the 12 months.

How do I get the tax relief?

When you take out a new mortgage, your lender will supply you with a form TRS1 to complete. This form will show your mortgage account number as well as your personal details (name address and RSI (personal tax number). This form will need to be signed by you and returned to your local tax office. From there the revenue will contact your lender directly to arrange for the tax credit to be applied. The process may take a couple of months and if you don't see the credit coming through on your bank statement after this period, you may have to contact the local tax office to make sure your form has not been misplaced.

In the case of a loan in joint names, each borrower is entitled to relief in his or her own right subject to the upper limits. Where the mortgage payment is made in full by one of the joint borrowers, the reduction in the monthly payment under this TRS system should reflect the aggregate relief due to all joint borrowers.

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Variable rate warning: The cost of your monthly repayments may increase - If you do not keep up your repayments you may lose your home. The payment rates on this housing loan may be adjusted by the lender from time to time.

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