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The Help To Buy Scheme Has Been Extended Until 2024
In the 2023 Budget, it was announced that the Help to Buy Scheme will now be extended until the end of 2024, meaning that thousands more people will be able to buy their first home.
In this article, we explain what the Help to Buy Scheme is, who qualifies for it and how to apply for it.
What is the Help to Buy Scheme?
First introduced in 2017, the Help to Buy (HTB) Scheme is a government-funded initiative aimed at helping first-time buyers to get onto the property ladder. It is available to people who plan to either buy or self-build their first home (up to a maximum property value of €500,000).
How does the Help to Buy Scheme work?
With the HTB Scheme, you can get a refund of the Income Tax and Deposit Interest Retention Tax (DIRT) that you have paid over the previous four tax years. This refund will then cover the cost of your deposit.
How do I qualify for the Help to Buy Scheme?
To qualify for the HTB Scheme, you must meet the following criteria:
- You must be a first-time buyer, meaning that you must not have previously bought or built a property individually or with someone else, whether in Ireland or abroad. (Note: You can still apply if you have inherited or been gifted a property.)
- The property you plan to buy or build must be a new home that you intend to live in (i.e. not an investment property) and you must live in it for five years from the date that it is habitable.
- You must buy from a Revenue-approved contractor or developer if you are buying a new home. If you are building one, then you will need a solicitor known as an “HTB Approver” to verify your HTB claim.
- The purchase price of your home or the valuation of your self-build must be €500,000 or less.
- Your mortgage loan-to-value ratio must be at least 70%.
- You must be fully tax-compliant for the 4 years immediately before your claim.
- You must not be a cash buyer.
What kind of rates does the Help to Buy Scheme offer?
If you sign a contract for a new house or draw down on a self-build mortgage before December 31st 2024, then you can claim relief on the lesser of
- €30,000
OR - 10% of the purchase price of a new build property
OR - 10% of the approved valuation of a self-build property
OR - The amount of income tax and DIRT paid for the four years before making the application.
How do I apply for the Help to Buy Scheme?
The application process for the HTB Scheme is fairly straightforward and involves three stages:
(1) The application stage
(2) The claim stage
(3) The verification stage
Stage 1: Application
If you are a PAYE employee only, you can apply for the HTB Scheme through Revenue’s myAccount service. You must complete Form 12 for each of the four years before your claim.
If you are a self-assessed taxpayer, you can apply through Revenue’s Online Service (ROS). You’ll need to complete Form 11 for each of the four years before your claim.
Provided you are tax compliant, your application will be approved and you will then be given a summary of the maximum amount you can claim under the scheme.
Stage 2: Claim
Once your application is approved you can make your claim using ROS or MyAccount. You will need to provide documents related to your mortgage (such as the signed new home contract provided by your solicitor) and confirm details about the property at this stage.
If you are self-building your home, you will need to upload the details of your builder or developer.
Stage 3: Verification
Finally, you’ll need to get the information you have provided verified by an “eligible verifier”. If you are buying a new home, this person is the contractor. If you are self-building, then it’s your solicitor.
How is the Help to Buy Scheme different from the First Home Scheme?
The First Home Scheme (FHS) is another incentive aimed at supporting people to buy new homes, but it is significantly different to the HTB Scheme.
The HTB Scheme offers a tax refund for first-time buyers of newly-built homes, whereas the FHS is a “shared equity scheme”. This means that the State and participating banks pay up to 30% of the cost of your new home in return for a stake in the property (which you can buy back at any time)
You may qualify for both the FHS and the HTB schemes. With the FHS you can get up to 30% of the market value of your new home, and this is reduced to 20% if you are also availing of the HTB Scheme.
Symmetry Financial – your impartial financial advisor
Buying a new home can be a tricky process to navigate, and while there are various schemes available that offer financial support, it can be confusing and overwhelming to know what your best options are.
That’s why it’s always a good idea to consult with an experienced financial advisor who has your best interests in mind and can help to guide you smoothly through the process.
At Symmetry Financial Management, our team of expert and impartial mortgage advisors works with first-time buyers, switchers, home-movers, and investors to help you get the best rate on your mortgage, always.
Schedule a no-obligation appointment with one of our team and begin your journey towards becoming a homeowner today!
Make sure to also check out our blog and resources for more news and advice relating to mortgages and financial planning.
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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