Dáil Éireann Debate, Tuesday - 28 February 2017
238. Deputy Thomas Byrne asked the Minister for Finance if the first-time buyers grant can be used to contribute towards a required deposit; and the mechanism in place to ensure it can be available for this purpose at contract stage. [10263/17]
Amharc ar fhreagraI assume the Deputy is referring to the Help to Buy incentive which was initially announced on 19 July 2016 as part of 'Rebuilding Ireland: Action Plan for Housing and Homelessness' and was legislated for in Finance Act 2016. The initiative aims to assist a first-time purchaser to fund the deposit required to purchase or self-build a new property to serve as their principal primary residence . The scheme is open to both those who are purchasing new builds from a developer, and those who self-build.
The application process for the Help to Buy incentive varies depending on the relevant property type. For new builds purchased on or after 1 January 2017, which meet the requirements of the scheme, the appropriate rebate is payable directly to the developer once the contract to purchase the property has been entered into. In this manner it forms part of the 10% deposit that is usually paid to the developer by the purchaser.
For applicants who are undertaking to self-build a property and who draw down the first tranche of their qualifying loan on or after 1 January 2017, the refund is paid to the claimant's bank account following such draw down. The information supplied by the claimant must be verified by the claimant's solicitor before any refund is paid.
There is also a third category of claimants under the Help to Buy incentive, known as retrospective claimants. This comprises individuals who have contracted to purchase a new build home, or who have drawn down the first tranche of their qualifying loan to self-build a home, in the period between 19 July 2016 and 31 December 2016. As these individuals would have already paid their deposits/commenced building prior to the commencement of the incentive, any potential rebate they are due under the scheme will be paid retrospectively directly to them. Retrospective claimants are required to submit supporting documentation including a signed copy of the contract, evidence of their mortgage or mortgage drawdown, and details of the property directly to Revenue.
