Mortgage Interest Relief Eligibility

Dáil Éireann Debate, Tuesday - 11 December 2012

Tuesday, 11 December 2012

Questions (150)

Michelle Mulherin

Question:

150. Deputy Michelle Mulherin asked the Minister for Finance if he will address the practical problem posed for first time buyers who wish to avail of enhanced mortgage interest relief in order to make their mortgage repayments affordable by drawing down their mortgage before the deadline of the 31 December next but find that their lending institution owing to its Christmas holiday arrangements will not issue loan cheques after mid-month and the first time buyer is unable to draw down by that date and is consequently precluded from qualifying for the relief and if he will make arrangements to accommodate first time buyers who are discommoded by this; and if he will make a statement on the matter. [55657/12]

Written answers

Minister for Finance

The position is, as I have stated in my Budget 2012 speech on 6 December 2011, and on many occasions in this House since, that mortgage interest relief for principal private residences will no longer be available to house purchasers who purchase after the end of 2012 and will be fully abolished from 2018. This means that a loan will have to be drawn down on or before 31 December 2012 in order to qualify for this relief. I have no plans to review this decision and I believe that more than adequate notice of this decision has been provided. As with all time-limited reliefs, there will always be people who just miss out, and that is why I have been as flexible as possible with the legislation within the current budgetary constraints. However, I do not intend to extend the parameters of the measure any further.

As you will appreciate, I receive numerous requests for the introduction of new tax reliefs and the extension of existing ones. You will also appreciate that I must be mindful of the public finances and the many demands on the Exchequer given the current significant budgetary constraints. Tax reliefs, no matter how worthwhile in themselves, reduce the tax base and make general reform of the tax system that much more difficult.