Dáil Éireann Debate, Wednesday - 3 May 2023
121. Deputy Eoin Ó Broin asked the Minister for Finance if the 70% loan to value ratio required to avail of the help-to-buy scheme applies to the market value or discounted price of the property for a purchase of a local authority affordable home under the affordable housing fund; and, if the former, to explain the reason. [20712/23]
View answerThe Help to Buy (HTB) incentive is a scheme to assist first-time purchasers with the deposit they need to buy or build a new house or apartment. The incentive gives a refund on Income Tax and Deposit Interest Retention Tax paid in the State over the previous four years, subject to limits outlined in the legislation. Section 477C of the Taxes Consolidation Act 1997 outlines the definitions and conditions that apply to the scheme.
HTB will only apply where a mortgage is taken out to purchase or build a home and where the value of the qualifying loan is a minimum of 70% of the ‘purchase value’ of a purchased new build or 70% of the approved valuation of a self-build.
The ‘purchase value’ of a purchased property is the price paid for the residence. In cases where the price paid is less than market value, the ‘purchase value’ will be the market value. The ‘purchase value’ of a property cannot be less than its market value for the purposes of this calculation.
In the case of a property purchased from a local authority under the Local Authority Affordable Purchase scheme, the HTB loan to value ratio is calculated using the market value of the property.
