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Our Guide To Understanding Help To Buy Scheme Rules In Ireland
If you’re a first-time buyer on a mission to step onto the property ladder in the near future, there are many benefits to wrapping your head around the Help to Buy Scheme rules.
For the past 10 years, this incentive has helped thousands of novice house hunters realise their dream of becoming homeowners.
To join this cohort, it’s crucial to understand the rules and eligibility requirements that apply to applicants, so that you can ensure thorough compliance and a seamless process.
To simplify what can seem like a daunting task, we’ve compiled our very own guide to the HTB rules, which takes you through everything from what the Scheme is for and how it works, to the boxes you need to tick to be eligible!
How does the Help to Buy Scheme assist first-time buyers?
The Help to Buy Scheme is a government-led incentive, designed to offer first-time buyers financial assistance towards the purchase of their first home. This comes in the form of a tax refund, which can be used to help pay the deposit on a new property.
The amount awarded to eligible applicants will be calculated based on the income tax and Deposit Interest Retention Tax (DIRT) that they paid in the four years before applying. However, USC and PRSI contributions are not included when calculating the refund.
The maximum you can claim is €30,000, or 10% of the purchase price of your chosen property, whichever is the lesser of the two.
Launched in 2016, the Scheme is due to run until 31st December 2029, and has so far seen more than 61,000 claims approved.
What types of property are eligible according to the Help to Buy Scheme rules?
Before applying for HTB, it’s important to ensure your property of choice will be deemed acceptable under the rules of the Scheme. These rules stipulate that:
- The value of the property you are buying or building must not exceed €500,000.
- In the case of a self-build, an approved valuation must be submitted to prove the property’s value falls on or below this cap.
- The property must be a new build or a self-build.
While second-hand homes are not accepted under the scheme, there are exceptions. For example, if the property in question was once a non-residential building that has been renovated for residential use, it may be eligible under HTB.
What are the Help to Buy Scheme rules surrounding individual eligibility?
To be eligible for the Help to Buy Scheme, you must first meet several criteria as an individual:
- You (along with your co-purchaser/s in the case of a joint mortgage) must be a first-time buyer.
- You must have paid Irish Income Tax and/or DIRT in the four tax years preceding your application, as the refund is based on the amount you paid in the four years before your application.
- You must use the home you are buying/building as your principal residence for at least five years following the purchase of the property.
If you’re uncertain about your tax status and are seeking clarity in this area, it’s highly advisable to seek the assistance of an expert mortgage advisor, who will explain all the finer details in an accessible way, while helping you to determine your eligibility for HTB.
Help to Buy Scheme rules: Other important points to note
Aside from the rules discussed above, there are other stipulations you should be aware of if you are considering applying for HTB.
These are as follows:
- You must take out a mortgage with one of the Scheme’s approved lenders.
- This mortgage must be at least 70% of either the property’s purchase value or of the approved valuation (applicable to self-builds).
- If you’re buying a new build, the contractor must be featured on Revenue’s list of approved developers and contractors.
- If you’re building a home, you will need a Revenue-registered solicitor to approve your claim for the Help to Buy Scheme.
Further to this, it’s important to note that as a first-time buyer, you can combine HTB with other government programmes, such as the Local Authority Affordable Purchase Scheme or the First Home Scheme, provided your proposed purchase meets eligibility criteria across the board.
Understand the Help to Buy Scheme rules with help from Symmetry Financial
Navigating the rules and regulations of government incentives like the Help to Buy Scheme can be both stressful and time-consuming. However, there’s a simple solution to this: seeking help from expert first-time buyer mortgage advisors.
At Symmetry Financial, we have years of experience guiding our clients through Irish mortgage support schemes, such as HTB.
Aside from simply assessing your eligibility, we also:
- Steer you through the entire application process
- Ensure you remain compliant with Revenue rules
- Help you calculate your deposit needs
- Structure your mortgage to meet the Help to Buy’s LTV rules
- Offer unparalleled advice on first-time buyer mortgages with approved lenders
Our team is on hand throughout to simplify and streamline the entire experience, so get in touch with us to learn more about the HTB rules and to assess your eligibility!
If you’d like a free, no-obligation consultation for your mortgage, pension or financial needs, get in touch here, call us on 01 6831673 or email us directly on info@symmetryfinancial.ie.
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