Mortgage Interest Relief.

What is Mortgage Interest Relief?

Mortgage Interest Relief is a tax relief claimed on mortgage interest payments. Since 1st January 2002, tax relief for home mortgage interest (known as TRS) is granted at source by the mortgage lender. Under this scheme, your mortgage lender gives the relief either in the form of a reduced monthly mortgage payment or a credit to the funding account.

All individuals with a qualifying mortgage on their principal residence are entitled to apply to the Revenue Commissioners to have mortgage interest relief on the interest charged/paid on the qualifying mortgage applied at source by the lender.

For more information visit www.revenue.ie

How is my Mortgage Interest Relief calculated?

A sample of Married Couple's Mortgage Interest Relief?

A sample of a Single Person's Mortgage Interest Relief?

How is my Mortgage Interest Relief calculated?

You can only get relief on the interest charged/paid on your mortgage. The actual relief you receive is dependant on the ceiling or upper limit allowable.

The current annual ceiling on the amount of interest that can be allowed on a mortgage for first-time buyers for a single person is €10,000 and for a married couple is €20,000. The level of relief will be available for the first seven years of the mortgage, with a reduced level of relief applicable thereafter.

return to the top

A sample of Married Couple's Mortgage Interest Relief?

The following is an example of how Mortgage Interest Relief is calculated for a Married Couple:

Married Couple
Value of home = €400,000
92% Mortgage of €400,000 @ variable rate 5.4%

Current Mortgage Interest Relief for the owners, a married couple, is 20% of €20,000 (or a maximum of €4,000) to the value of €333.33 per month.

Mortgage of €368k x 0.054 = €19,872 in interest to be paid per year.
20% of the interest repayments €19,872= €3974.40 per year
or €331.20 per month in Mortgage Interest Relief.

return to the top

A sample of a Single Person's Mortgage Interest Relief?

The following is an example of how Mortgage Interest Relief is calculated for a Single Person:

Single Person
Mortgage of €420,000 @ fixed rate 4.69%

Current Mortgage Interest Relief for the owner, a single person, is 20% of €10,000 (or a maximum of €2,000) to the value of €166 per month.

Interest payments per annum total €19,698.
Mortgage Interest Relief is applied at 20% on a maximum of €10,000 in interest. As interest payments more than exceed this amount, this single person will receive the maximum relief which is €2,000 per year or €166.60 per month.

return to the top