Mortgage interest relief was a valuable tax relief that helped thousands of Irish homeowners reduce their tax burden by allowing them to claim back some of the mortgage interest they paid on their home loans. While this scheme is no longer available to new applicants, some homeowners may still be eligible under legacy arrangements.
What Was Mortgage Interest Relief?
Mortgage interest relief was a tax relief that allowed homeowners to claim back a portion of the mortgage interest paid on their principal private residence. The relief was given at source (TRS – Tax Relief at Source), meaning it was automatically deducted from your mortgage payments.
Current Status
- The scheme closed to new applicants from January 1st, 2013
- Extended relief was available until 2020 for those who bought between 2004 and 2012
- Some homeowners who purchased during the peak years (2004-2008) received additional relief
Who Still Qualifies?
The only people who may still qualify for mortgage interest relief are those who:
- Purchased their homes between 2004 and 2012
- Are still paying their original mortgage
- Haven’t moved or remortgaged
Historical Relief Rates
The relief rates varied depending on:
- When you bought your home
- Whether you were a first-time buyer
- Your marital/civil partnership status
Alternative Options Available Today
While mortgage interest relief is no longer available for new homeowners, there are other supports available:
- Help to Buy (HTB) scheme
- First Home Scheme
- Local Authority Home Loan
- Rebuilding Ireland Home Loan
Tips for Current Homeowners
If you’re looking to reduce your mortgage costs today, consider:
- Reviewing your current interest rate
- Exploring switching lenders
- Making overpayments when possible
- Consulting with a financial advisor about tax-efficient strategies
Key Takeaways
- Mortgage interest relief has been phased out for new applicants
- Alternative government supports are now available for new buyers
- Existing homeowners should explore current options for reducing mortgage costs
