Help to Buy Scheme

Details

Created: Thursday, November 17 2016 17:45

Budget 2017 introduced the “Help to Buy Scheme” which is aimed at assisting first time buyers to purchase newly built homes.

The incentive operates by way of a rebate of income tax paid over the previous four tax years as a contribution to the deposit required to acquire the property.

The idea behind the scheme is that it is intended to kick-start the construction of new builds at a more affordable level. The scheme is available to applicants who have signed a contract to purchase a home on or after 19th July 2016. The scheme also extends to people who have drawn down their first stage payment of their mortgage for self builds.

To avail of the scheme, the house must be a new build and applicants must take out a mortgage of at least 80% of the purchase price. The maximum available rebate will be up to 5% of the value of the new home valued at €400,000 (i.e. €20,000). The €20,000 maximum rebate available will be available for houses valued between €400,000 and €600,000 (although recent reports suggest that the Government has agreed to lower the cap for the scheme to €500,000).

No relief is available to people buying second hand homes.

The scheme is expected to run until the end of 2019.