Jack Chambers
Question:183. Deputy Jack Chambers asked the Minister for Finance the changes made to mortgage interest relief for homeowners in budget 2019; and if he will make a statement on the matter. [44958/18]
View answerTuesday, 6 November 2018
Questions (183)
Written answers
The Deputy may be aware that I made no changes to Mortgage Interest Relief for homeowners in Budget 2019.
However, he may also recall that I announced in Budget 2018 that I would extend Mortgage Interest Relief (MIR) for the remaining recipients of the relief on a tapered basis for three years, through to 31st of December 2020. In 2018, recipients of MIR qualified for 75% of the relief that they qualified for in 2017. From January 2019, recipients will qualify for 50% of the relief that they qualified for in 2017.
Without this extension provided for in Budget 2018, each remaining relief holder would have faced a ‘cliff’ where the relief would have ceased entirely in January 2018. The three year extension was put in place to alleviate the potential financial difficulties of this ‘cliff’, and to give the relief holders a transition period to adjust to the cessation of the relief on a phased basis.
My decision in Budget 2018 to extend MIR on a tapered basis for three years balanced the competing objectives of allowing relief holders a transition period to adjust to the withdrawal of relief, while also considering the fairness to mortgage holders who have never held a relief on their mortgage interest, who may also face similar financial challenges in meeting mortgage repayments.