What is Mortgage Interest Relief?

The government will give you tax relief on the interest you pay on your mortgage - for the first 7 years that you are living in a home. 

• This will be given to you at source
  (i.e. paid directly into your bank account each month), by your mortgage lender. 
  
  
• When you complete the home purchase, your lender will send your the relevant forms to fill in.

There has been a lot of confusion in the media about the changes in the April 2009 Budget. It is not open exclusively to first time buyers - it is open to all owner occupiers - as long as you have been living in your home for 7 years or less.

If you move home, the 7 years starts over. So for example, if you sold your existing home and bought a new one in 2009, you can claim relief for a further 7 years - until 2016.

Mortgage Interest Relief is paid on a scales basis

• 25% tax relief in years 1 & 2
• 22.5% tax relief in years 3, 4 & 5
• 20% tax relief in years 6 & 7
  

• The relief is calculated on the interest part of your mortgage payment only
  
  
• Up to a limit of €20,000 for a couple / €10,000 for an individual, per year.