The Help To Buy Scheme (HTB) House Purchase Scheme
15th May 2024
To qualify for the Help to Buy scheme, specific criteria must be met by your new home.
The residential property you purchase or construct must be newly built and have never been used or deemed suitable for residential purposes before. In the case that the property was previously non-residential but has since been converted for residential use, it may be eligible for the Help to Buy (HTB) scheme.
For those purchasing a new home, the property's market value must not exceed €500,000. Generally, the market value is the actual purchase price; however, if the price has been subsidized (e.g., through the Local Authority Affordable Purchase Scheme), the market value must be used.
In the case of constructing your own home, the approved valuation of the property must be €500,000 or less, as determined by your mortgage provider at the time of mortgage initiation. This valuation encompasses the site's cost.
If you are purchasing a new home, ensure that the contractor or developer is approved by Revenue. A list of approved developers and contractors is available through Revenue for verification.
For those constructing their own homes, enlist the services of a solicitor registered with Revenue as an 'HTB approver' to validate your Help to Buy claim.
Living in the property for a minimum of 5 years from the date it becomes habitable is a requirement. Failure to fulfill this residency condition will necessitate repayment of the Help to Buy payment.
The Help to Buy (HTB) scheme is crafted to support first-time buyers in securing the necessary deposit for acquiring or constructing an eligible property to serve as their primary residence. HTB allows for a reimbursement of Income Tax and Deposit Interest Retention Tax (DIRT) paid within the State over the preceding four tax years, subject to specified limits outlined in legislation (section 477C of the Taxes Consolidation Act 1997).
As part of a Government Stimulus package in 2020, an enhanced version of the HTB scheme was introduced. This enhanced relief, initially extended, is now slated to conclude on 31 December 2024. The augmentation stipulates that individuals who sign a contract for the purchase of a qualifying property or initiate the first mortgage drawdown for a self-build property between 23 July 2020 and 31 December 2024 will be eligible for increased relief under the HTB scheme, capped at the lesser of:
1. €30,000 (raised from €20,000),
2. The total amount of income tax and DIRT paid in the four years preceding the application, or
3. 10% (increased from 5%) of the purchase price or approved valuation for a self-build property.
Types of Applicants
There are two distinct categories of applicants eligible to apply for the Help to Buy scheme:
First-Time Purchaser Applicants:
If a contract is executed for the purchase of a new home between 1 January 2017 and 31 December 2024, the information submitted during the application process will undergo verification by an approved Qualifying Contractor. The reimbursement will be disbursed to the approved Qualifying Contractor as a component of the deposit required from the first-time purchaser.
It is incumbent upon you to ensure that your chosen contractor is registered as a Qualifying Contractor before finalizing the home purchase.
First-Time Self-Build Applicants:
For first-time purchasers engaging in self-building of a new residential property between 1 January 2017 and 31 December 2024, the information furnished during the application stage will be authenticated by your Solicitor. The reimbursement will be transferred to a bank account held with your mortgage provider.
Notably, there is no obligatory requirement to engage an approved Qualifying Contractor for self-building projects.
Finding the right mortgage broker is crucial in the home-buying process, as they can help you navigate the complexities of mortgage options and find the best deal for your financial situation.
Below is a list of some Dublin based mortgage brokers.
CORK MORTGAGE BROKERS
GALWAY MORTGAGE BROKERS
12 CASTLECURRAGH VALE BLANCHARDSTOWN DUBLIN 15 Dublin LOCATION MAP
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16 CASTLE HOUSE DAVITTS QUAY DUNGARVAN Waterford LOCATION MAP
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184 BACHELORS WALK APTS BACHELORS WALK DUBLIN 1 Dublin LOCATION MAP
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