Peter Mathews
Ceist:181 Deputy Peter Mathews asked the Minister for Finance his plans regarding home owners (details supplied); and if he will make a statement on the matter. [18766/12]
Amharc ar fhreagraWednesday, 18 April 2012
Ceisteanna (195)
Freagraí scríofa
I assume that the Deputy is referring to the increase in the rate of mortgage interest relief to 30 per cent which I announced in Budget 2012. The position is that the new measure fulfils the Government's commitment contained in its Programme for Government to increase the rate of Mortgage Interest Relief to 30 per cent for first-time buyers who took out their first mortgage in the period 2004 to 2008. This was the period during which house prices peaked.
I have sought to be as flexible as possible within the constraints pertaining. Under the current tax legislation Mortgage Interest Relief is granted from the date the first mortgage interest payment is made. The legislation has been amended for this particular measure to also include mortgage draw-down as a qualifying event for the rate increase. This means that a mortgage holder will qualify for the increased rate if they made their first mortgage interest payment in the period 2004 to 2008 or if they drew down their mortgage in that period.
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. However, I do not intend to extend the parameters of the measure any further as it would become less targeted and more costly.
It should be noted that individuals who took out qualifying loans in 2009 as first-time buyers are currently receiving mortgage interest relief and will continue to qualify for relief up until end 2017.