The Minister for Finance has made it clear that there will be no extension to a generous tax- relief deal for first time buyers. Under the scheme first time buyers receive mortgage interest relief at 25% and non first time buyers at 15%. The relief is paid by the Revenue Commissioners to your lender effectively means the borrower makes smaller monthly payments. According to the Professional Insurance Brokers Association the scheme means a potential saving of €18,000.00 over seven years for a couple taking out a €300,000.00 mortgage at 4.25% interest rate if they buy before the end of this year.
To avail of the relief you must purchase and draw down your loan prior to the end of 2012. Please note that under the rules attaching to the scheme if you are building a house and drawing down your loan in stage payments that you can only avail of the relief on the share of the debt drawn down before the end of the year. If you are thinking of purchasing a property in the coming months now is the time to do so to avail of this substantial saving to your repayments. Recent media reports indicate that many of the lending institutions are fast tracking mortgage applications to ensure that potential borrowers can avail of the relief. There is a very limited window of opportunity here as not only must your loan be in place and drawn down the purchase must be complete you need to give yourself, your lender and your Solicitor enough time to get all the paperwork in order.
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