The Government has fulfilled its commitment in the Programme for Government to increase mortgage interest relief to 30% for first-time buyers who purchased homes between 2004 and 2008.

• As a result of this measure all MIR claimants who purchased for the first time between 2004-2008 will benefit from an increase in the level of mortgage interest relief that they receive in the period 2012 to 2017.
• It is estimated that this measure will cost €52 million per annum

The effects of this measure are demonstrated below:

Single and Married couples who purchased their first home between 2004 – 2008

Year of Purchase	Maximum Relief in 2012		Maximum Gain	Maximum Gain (per month)
	Existing	Proposed
2004	€450/€900	€900/€1,800	€450/€900	€37/€75
2005	€450/€900	€900/€1,800	€450/€900	€37/€75
2006	€2,000/€4,000	€3,000/€6,000	€1,000/2,000	€83/€167
2007	€2,000/€4,000	€3,000/€6,000	€1,000€2,000	€83/€167
2008	€2,250/€4,500	€3,000/€6,000	€750/€1,500	€63/€125

Details:

Those who purchased their first home in 2004:

• Individuals who took out qualifying loans in 2004 as first-time buyers will receive a maximum gain of €450 per annum for single and €900 per annum for married. This will bring their total maximum relief to €900/€1,800 per annum for single/married.
• These mortgage holders are now receiving relief at non-first-time buyer rates (7 year rule).
• They would have received relief in 2012 at a rate of 15% on ceilings of €3,000 for single and €6,000 for married. However, as result of this measure they will now receive relief in 2012 at rate of 30% on ceilings of €3,000/€6,000 for single/married respectively.

They will benefit from this increased rate of relief until 2017 which is demonstrated in the table below:

Single and Married Couples who purchased their First Home in 2004

Year	Status	Ceiling	Current Rate	Proposed Rate	Maximum Current Relief	Maximum Proposed Relief	Maximum Gain
2012	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2013	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2014	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2015	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2016	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2017	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900

Those who purchased their first home in 2005:

• Individuals who took out qualifying loans in 2005 as first-time buyers will receive a maximum gain of €450 per annum for single and €900 per annum for married. This will bring their total maximum relief to €900/€1,800 per annum for single/married.
• These mortgage holders will now receiving relief at non-first-time buyer rates in 2012 (7 year rule).
• They would have received relief in 2012 at a rate of 15% on ceilings of €3,000 for single and €6,000 for married. However, as result of this measure they will now receive relief in 2012 at rate of 30% on ceilings of €3,000/€6,000 for single/married respectively.
• They will benefit from this increased rate of relief until 2017 which is demonstrated in the table below:

Single and Married Couples who purchased their First Home in 2005

Year	Status	Ceiling	Current Rate	Proposed Rate	Maximum Current Relief	Maximum Proposed Relief	Maximum Gain
2012	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2013	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2014	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2015	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2016	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2017	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900

Those who purchased their first home in 2006:

• Individuals who took out qualifying loans in 2006 as first-time buyers will receive a maximum gain in 2012 of €1,000 for single and €2,000 for married. This will bring their total maximum relief in 2012 to €3,000/€6,000 for single/married respectively.
• These mortgage holders will continue to receive relief on the increased ceilings for first-time buyers in 2012 of €10,000/€20,000 for single/married respectively.
• In 2013 these mortgage holders will be entitled to the increased rate of relief on non-first-time buyer ceilings (7 year rule)
• They will benefit from this increased rate of relief until 2017 which is demonstrated in the table below:

Single and Married Couples who purchased their First Home in 2006

Year	Status	Ceiling	Current Rate	Proposed Rate	Maximum Current Relief	Maximum Proposed Relief	Maximum Gain
2012	FTB	€10k/€20k	20%	30%	€2000/€4000	€3000/€6000	€1000/€2000
2013	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2014	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2015	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2016	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2017	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900

Those who purchased their first home in 2007:

• Individuals who took out qualifying loans in 2007 as first-time buyers will receive a maximum gain in 2012 and 2013 of €1,000 for single and €2,000 for married. This will bring their total maximum relief in 2012 and 2013 to €3,000/€6,000 for single/married respectively.
• These mortgage holders will continue to receive relief on the increased ceilings for first-time buyers in 2012 and 2013 of €10,000/€20,000 for single/married respectively.
• In 2014 these mortgage holders will be entitled to the increased rate of relief on non-first-time buyer ceilings (7 year rule)
• They will benefit from this increased rate of relief until 2017 which is demonstrated in the table below:

Single and Married Couples who purchased their First Home in 2007

Year	Status	Ceiling	Current Rate	Proposed Rate	Max Current Relief	Max Proposed Relief	Maximum Gain
2012	FTB	€10k/€20k	20%	30%	€2000/€4000	€3000/€6000	€1000/€2000
2013	FTB	€10k/€20k	20%	30%	€2000/€4000	€3000/€6000	€1000/€2000
2014	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2015	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2016	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2017	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900

Those who purchased their first home in 2008:

• Individuals who took out qualifying loans in 2008 as first-time buyers will receive a maximum gain in 2012 of €750 for single and €1,500 for married. This will bring their total maximum relief in 2012 to €3,000/€6,000 for single/married respectively.
• In 2013 and 2014 they will receive a maximum gain of €1,000 for single and €2,000 for married. This will bring their total maximum relief in 2013 and 2014 to €3,000/€6,000 for single/married respectively.
• These mortgage holders will continue to receive relief on the increased ceilings for first-time buyers in 2012, 2013 & 2014 of €10,000/€20,000 for single/married respectively.
• In 2015 these mortgage holders will be entitled to the increased rate of relief on non-first-time buyer ceilings (7 year rule)
• They will benefit from this increased rated of relief until 2017 which is demonstrated in the below:

Single and Married Couples who purchased their First Home in 2008

Year	Status	Ceiling	Current Rate	Proposed Rate	Max Current Relief	Max Proposed Relief	Maximum Gain
2012	FTB	€10k/€20k	22.5%	30%	€2250/€4500	€3000/€6000	€750/€1500
2013	FTB	€10k/€20k	20%	30%	€2000/€4000	€3000/€6000	€1000/€2000
2014	FTB	€10k/€20k	20%	30%	€2000/€4000	€3000/€6000	€1000/€2000
2015	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2016	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900
2017	Non FTB	€3k/€6k	15%	30%	€450/€900	€900/€1,800	€450/€900

Qualifying loans taken out in 2012

• Individuals who take out qualifying loans in 2012 as first-time buyers will now receive relief at a rate of 25% on ceilings of €10,000 per annum for single and €20,000 per annum for married couples. This will give a maximum relief in 2012 of €2,500 for single and €5,000 for married. This is a gain of €2,050 and €4,100 on what would have applied.
• Non-first-buyers who take out qualifying loans in 2012 will continue to receive relief at a rate of 15% on ceilings of €3,000 for single individuals and €6,000 for married couples. This will give a maximum relief in 2012 of €450 for single and €900 married. This is a gain of €150 and €300 on what would have applied.
• The previous Government had legislated for qualifying loans taken out in 2012 would receive the relief at reduce rate of 15% for first time buyers and 10% for non-first-time buyers with a common ceiling of €3,000 for single individuals and €6,000 for married couples. However, the current system of relief will now be extended for anyone taking out qualifying loans in 2012.
• It is estimated that it will cost €5 million per annum to extend the current system of relief to 2012.
• Loans taken out in 2013 will not qualify for mortgage interest relief.
• The changes to rates and ceilings for those who purchased in 2012 is demonstrated below:

Single and Married Couples taking out a qualifying loans in 2012 as a First Time Buyers

Year	Current Ceiling	Proposed Ceiling	Current Rate	Proposed Rate	Maximum Current Relief	Maximum Proposed Relief	Maximum Gain
2012	€3k/€6k	€10k/€20k	15%	25%	€450/€900	€2500/€5000	€2050/€4100
2013	€3k/€6k	€10k/€20k	15%	25%	€450/€900	€2500/€5000	€2050/€4100
2014	€3k/€6k	€10k/€20k	15%	22.5%	€450/€900	€2250/€4500	€1800/€3600
2015	€3k/€6k	€10k/€20k	15%	22.5%	€450/€900	€2250/€4500	€1800/€3600
2016	€3k/€6k	€10k/€20k	15%	22.5%	€450/€900	€2250/€4500	€1800/€3600
2017	€3k/€6k	€10k/€20k	15%	20%	€450/€900	€2000/€4000	€1550/€3100

Single and Married Couples taking out a qualifying loans in 2012 as a Non-First-Time Buyers

Year	Current Ceiling	Proposed Ceiling	Rate	Proposed Rate	Maximum Relief	Maximum Proposed Relief	Maximum Gain
2012	€3k/€6k	€3k/€6k	10%	15%	€300/€600	€450/€900	€150/€300
2013	€3k/€6k	€3k/€6k	10%	15%	€300/€600	€450/€900	€150/€300
2014	€3k/€6k	€3k/€6k	10%	15%	€300/€600	€450/€900	€150/€300
2015	€3k/€6k	€3k/€6k	10%	15%	€300/€600	€450/€900	€150/€300
2016	€3k/€6k	€3k/€6k	10%	15%	€300/€600	€450/€900	€150/€300
2017	€3k/€6k	€3k/€6k	10%	15%	€300/€600	€450/€900	€150/€300

Source: Department of Finance. www.finance.gov.ie