Recent changes to the Mortgage Interest Relief (MIR) were made in Budget 2010. Following is a synopsis of what Mortgage Interest relief is. MIR is available on qualifying loans and is given at source by your financial institution either as a reduced mortgage interest payment or as a credit to your loan account. A qualifying loan is a secured loan, used to purchase, repair, develop or improve your main residence, situated in Ireland. Details of MIR are as follows:
- With effect from 1st May 2009, the number of years for which MIR applies is 7 years for both first time buyers and non first time buyers.
- A non first time buyer is entitled to MIR up to an upper limit of €3,000 at a rate of 15% on any new loan or top up taken out from 1st May 2009 or in the last 7 years for a maximum period of 7 years. If a person moves home and takes out a new mortgage for this hom with a new or existing lender, they are eligible for relief for 7 years from the date of first payment on the new loan.
The Minster for Finance has confirmed the following changes in his Budget 2010 announced in December 2009:
- qualifying loans taken out before 1 July 2011 will continue to get MIR at current levels for seven years, and
- transitional arrangements will apply to loans taken out in the subsequent 18 months at a reduced level and duration.
It is the Minister’s intention to abolish MIR entirely by the end 2017.
If you have any queries on the above or would like more information on the above, our financial consultants would be more than happy to discuss with you. We can be contacted on 027-50198 or info@mosgroup.ie
