The Clare Champion Clare news, sport, entertainment and local notes
To get a mortgage in Ireland, you will generally need to follow these steps: decide if you want to use a broker to explore your options, choose a bank with a mortgage that suits your needs, hand over the paperwork requested and get an offer in principle, find a property within your budget, and agree a purchase price with the seller and choose a local solicitor who will help with the legal aspects of the purchase.
Like most things in life the ‘devil is in the detail’ – so we would strongly recommend you consider using a mortgage broker who can hold your hand through the process, not to mind the volume of paperwork required.
Today we would like to cover some of the main Support Schemes available to home buyers?
The First Home Scheme Ireland 2024 is a First Buyers Grant that works as an equity scheme, while the Help to Buy Scheme is a tax refund scheme. It allows first time buyers purchasing newly built homes or those self-building to receive from 2.5% up to 30% of their property value as a deposit to help reduce the mortgage amount needed.
How do I claim help to buy Ireland 2024?
In order to claim from the Help to Buy scheme Ireland 2024, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home. This refers to Income Tax and DIRT. You cannot claim from USC or PRSI.
The Help to Buy (HTB) Scheme helps first-time buyers purchase a newly-built house or apartment. You can also get it for once-off self-build homes. It only applies to properties that cost €500,000 or less.
If you are buying or building the property with someone else, they must also be a first-time buyer.
The HTB Scheme was increased in July 2020. This increase is known as the Enhanced Help to Buy Scheme. The Enhanced Help to Buy Scheme is available until December 31, 2024.
Mortgage must be at least 70% of the purchase price.
You can claim relief on the lesser of: €30,000, 10% of the market value of a new build property, 10% of the approved valuation of a self-build property, the amount of income tax and DIRT you paid for the 4 years before the year you apply. (You cannot claim relief on PRSI or USC).
The maximum payment is €30,000 per qualifying property under the enhanced scheme. This cap applies regardless of how many people are involved in buying the property.
You will not qualify if: You have previously bought or built a house or apartment, either by yourself or with someone else. This applies even if you are now separated or divorced from that person and have given up your interest in the property, you have owned a home abroad, you don’t plan on living in the property as your main home for at least five years after buying or building it (HTB is not available for investment properties), you have not taken out a mortgage for the property.
You have to pay the HTB payment back to Revenue if you, do not live in the home for at least five years, do not complete the purchase of the home, do not finish building the home, were not entitled to the payment in the first place.
If you do not live in the home for 5 years, the amount you must repay depends on how long you lived there.
There are some exceptions to this. For example, if you bought or built the home with another first-time buyer and you want to move out, but they want to stay for at least five years, you will not have to repay the HTB. There is also an exception if you need to relocate temporarily for work.
How long does the help to buy scheme last in Ireland?
This HTB incentive offered by the Irish Government lasts until December 31, 2024.
https://www.citizensinformation.ie/en/housing/owning-a-home/help-with-buying-a-home/help-to-buy-scheme/
Vacant Property Refurbishment Grant
The Vacant Property Refurbishment Grant provides funding so you can refurbish vacant and derelict homes. You can get the grant if you are refurbishing the vacant property so you can live there, or so you can rent the property out.
You can get a grant of up to €50,000 to renovate a vacant property and up to €70,000, if the property is derelict. For these grants revenue.ie is an excellent source of information.
Individual home energy upgrade Grants
There are three schemes under this heading and worth looking at each scheme individually to see if you could qualify. For instance, under the Better Energy Home scheme, you can get a grant for: attic insulation, wall insulation – including cavity wall, internal dry lining and external insulation, heating controls upgrade, solar thermal solutions, solar PV panels, heat pump systems (you can also get a grant for a technical assessment before you get a heat pump), a Building Energy Rating (BER) after the energy-saving work is carried out.
This scheme does not cover windows and doors, or the replacement of gas or oil boilers. There is a lot of detail in each scheme but the Citizen Information have a great website worth checking out.
Carey Corbett Financial Solutions are Independent Financial Brokers specialising in pensions, mortgages, investments and retirement planning and can be contacted on 065-6893540
Andrew Hamilton
Andrew Hamilton is a journalist, writer and podcaster based in the west of Ireland.
