Real Estate Alliance

A Short Guide to Mortgage Interest Relief

What is Mortgage Interest Relief

The government will give you tax relief on the interest you pay on your mortgage.

• 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 you the relevant forms to fill in.

First Time Buyers

• You can claim mortgage interest relief at the highest level, for the first 7 years.
• The relief is calculated on the interest part of your mortgage payment only.
• The relief has now doubled up to a limit for first-time buyers of €4,000 single and €8,000 married or widowed a year to €8,000 and €16,000 respectively.
• Relief is granted at 20%.

Owner Occupiers (non first time buyers)

• The relief works in the same way as above.
• The maximum limit on interest relief for non-first time buyers has also been raised from €2,540 single and €5,080 married to €3,000 and €6,000 respectively.
• Relief is calculated at 20%.