Dáil Éireann Debate, Thursday - 14 December 2017
85. Deputy Michael McGrath asked the Minister for Finance the number of mortgage holders availing of mortgage interest relief, MIR; the number of mortgages availing of MIR; the cost in 2017 of MIR; and if he will make a statement on the matter. [53744/17]
View answer86. Deputy Michael McGrath asked the Minister for Finance the number of mortgage holders that will still avail of MIR on 1 January 2018 in view of the changes announced in budget 2018; the number of mortgages that will still avail of MIR; the projected cost of MIR in 2018; and if he will make a statement on the matter. [53745/17]
View answerI propose to take Questions Nos. 85 and 86 together.
In Budget 2018, in fulfilment of a Programme for Government commitment, I provided for the extension of Mortgage Interest Relief (MIR) into a further three-year phase-out period for the remaining recipients of the relief.
The process of phasing out MIR for homeowners has been under way since 2009. Relief has expired for qualifying mortgages taken out prior to 2004 and, with some limited exceptions, the relief ceased for new borrowings with effect from January 2013. Prior to Budget 2018, MIR was scheduled to cease entirely at the end of 2017 for all remaining relief holders.
The time-limited, tapered extension of MIR will allow mortgage holders time to adjust to the change in their mortgage repayments as the relief is gradually withdrawn over the next three years. Budget 2018 provides for the continuation of 75 per cent of the existing relief into 2018, 50 per cent into 2019 and 25 per cent into 2020.
I am advised by Revenue that, to date in 2017, there are 417,834 individuals availing of MIR across 286,325 loans. It is estimated that MIR will cost around €175 million in 2017.
The Budget 2018 changes to MIR act to extend the relief for all current recipients on a tapered basis. Therefore, the number of recipients in 2018 will be broadly similar to the number in 2017, with a slight downward trend as some qualifying mortgages are redeemed each year. It is projected that the cost of MIR in 2018 will be approximately €124 million.
