Explained: Help to Buy Incentive
The ‘Help to Buy Incentive’ helps you to secure your very first home.
While buying your first home is exciting, it is equally daunting and it comes with its own set of challenges – one of which is financing. Thankfully, there are supports available to make this easier.
In recent years the Government launched the Help to Buy (HTB) Incentive, allowing First-Time Buyers to receive financial compensation towards the cost of their first home.
NOTE: As of Budget 2021, the HTB Incentive has been extended until the 31st December 2021.
Key Information
- The Incentive applies to properties to the value of €500,000 or less.
- This applies to the buying of a new house or apartment, but also to once-off self-build homes.
- It provides first-time buyers with a refund of income tax and DIRT paid in Ireland from the previous 4 tax years.
- You must take out a mortgage of at least 70% of the purchase price of the house.
- You must reside in the property for at least five years after you have bought or built it.
- You can claim €30,000 or 10% of the purchase price/completion value or the amount of income tax and DIRT you paid in the previous four years; whichever is less.
The Help to Buy Incentive is currently providing enhanced relief for the forseeable future. Previously, the support available was a maximum of €20,000 or 5% of the purchase price/completion value.
First-time buyers will be eligible for this scheme if they sign a contract for the purchase of a new house or make the first draw down of a mortgage for a self-build property.
With regards to payment, if you purchase a new build, the refund will be paid directly to your contractor, whereas if you self-build this payment will be made to your loan provider.
More detailed information of the Help to Buy Incentive can be found here.
Are you looking at buying a new home? Browse our developments here or speak to one of our expert property specialists today.