Help to buy scheme Ireland 2022- What it is and how you could claim €30,000

Help to Buy scheme Ireland 2021
Help to Buy scheme Ireland 2022

The Help to Buy Scheme Ireland 2022 allows first time buyers in Ireland to claim 10% of the value of their property, which can be anywhere up to €30,000. 

In this article, I will be going into detail about how the Help to Buy scheme works, what you have to do to qualify, how much can be available to you, how to get your taxes refunded, how to get up to date on your taxes so you can qualify, and finally how to apply.

1.How does the Help to Buy scheme Ireland 2022 work?

2. How do I know if I qualify for the Help to Buy scheme Ireland 2022?

3. How much is available to me from the Help to Buy scheme Ireland 2022?

4.How will I receive my tax refund from the Help to Buy scheme 2022?

5.How can I get up-to-date on my taxes for the Help to Buy scheme Ireland 2022?

6.How can I apply to the Help to Buy scheme Ireland 2022?

7. A summary of The Help to Buy scheme Ireland 2022. 

1. How does the Help to Buy scheme Ireland 2022 work?

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The Help to Buy scheme Ireland 2022 is a Government tax refund scheme.

It allows first time buyers to claim 10% of their property value to help them pay deposits on newly built homes.

This incentive offered by the Irish Government lasts until the 31st of December, 2022.

In order to claim from the Help to Buy scheme Ireland 2022, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home. 

This refers to Income Tax and DIRT.  You cannot claim from USC or PRSI. 

Don’t worry too much if you feel that you haven’t paid enough tax to qualify, as in actual fact most people in Ireland likely have paid 10% of their property tax within 4 years and can therefore apply to have their tax refunded for their new home under the Help to Buy scheme. 

2. How do I know if I qualify for the Help to Buy scheme Ireland 2022?

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Even if all your taxes are up to date, there are still some more conditions that you need to take into consideration before applying to this scheme.

In order to qualify, you must-

  • Be a first time buyer in Ireland and outside of Ireland.
  • Be moving in with an applicant who is also a first time buyer if more than one person will be purchasing the home, ie) if one applicant is not a first time buyer then you cannot qualify for this scheme. 
  • Be moving into a newly built or self built home.
  • Be using the property as your principal private residence for 5 years.
  • Be moving into a home that isn’t a conversion or restoration, however a conversion of a non-domestic home into a domestic home can qualify. 
  • Be moving into a home worth less than €500,000.
  • Have a mortgage with a loan to value of 70%. For example, if you are purchasing a home worth €200,000, your mortgage must be €175,000.
  • Not pay for home in cash. 
  • Not be an investor or landlord.
  • Not be using property for investment purposes. 
  • Have a solicitor or contractor registered with the Revenue Commission.

While it may seem that there are many conditions to this scheme, remember that this incentive is to help first time buyers get on the property ladder. 

Therefore if you are a first time buyer and have been tax compliant in the 4 years before moving into your new property, you will most likely be able to qualify for this scheme. 

3. How much is available to me from the Help to Buy scheme Ireland 2022?

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Under the Help to Buy scheme Ireland 2022, first time buyers can claim, 

  • 10% of the purchase price of their new build, for example a home worth €200,000 can claim €20,000.
  • The amount of Income Tax and DIRT paid in the previous 4 years before moving.

Or for self-builds, 

  • 10% completion value of their self-build home. 

In order to claim from this scheme, your home must be valued at €500,000 or less. 

The most you can claim from this scheme is €30,000, meaning that even if your home is valued at more than €300,000, you still can only receive €30,000 max.

Value of propertyRates Total claim received
€300,00010%€30,000
€400,00010%€30,000- cannot receive more than €30,000.

4.How will I receive my tax refund from the Help to Buy scheme 2022?

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So if you qualify for this scheme, your tax refund will be paid to you depending on your property. 

If you buy a new build after 1 January 2017 (4 years ago), the refund is paid directly to the builder.

If you self-build the property after 1 January 2017, the refund is paid to a bank account you hold with your loan provider.

This money can be used to help first-time buyers cover the costs of their deposits.

5. How do I get my taxes up to date for the Help to Buy scheme Ireland 2022?

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In order to claim from this scheme, you must be fully tax compliant and all your taxes must be up to date. 

However if your taxes are not up to date, you must complete a Form 12 if you are a PAYE earner or a Form 11 if you are self-employed.

You must fill out these tax forms in the 4 year period before you move into your new home and pay any outstanding taxes. 

6. How can I apply to the Help to Buy scheme Ireland 2022?

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If you think you qualify for the help to buy scheme Ireland, then you should go to Revenues MyAccount service, where you will be told how much tax refund is available to you as well as apply. 

7. In a Nutshell – Help to Buy Scheme Ireland 2022

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In short, the Help to buy scheme 2022 is a great incentive for new first time buyers who are looking to find their way into today’s housing market.

If you are looking to buy a new home as a first time buyer then this scheme is designed to help you.

That is why we at moneysherpa believe you should check to see if you’re eligible for this scheme and apply as soon as you can before it ends on the 31st of December, 2022.

Next Steps – Help to Buy Scheme Ireland 2022

Wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge or you get provisional approval in 5 minutes with our instant approval calculator, so you can get going and view some properties!

Want to see how much you could potentially save? Use our savings potential calculator here!

If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.

Stamp Duty Ireland 2022- What is Stamp Duty & Why You Need to Know About It

stamp duty

So what is stamp duty Ireland and do you need to pay it? Stamp duty is a tax that is paid when a property has been transferred from one person to another.

Stamp Duty Ireland.

When someone transfers their property onto you, you become the property owner and are charged a stamp duty tax.

Stamp duty is a tax charged on written documents that transfer ownership of land from one person to another. Stamp duty applies to all residential and non-residential properties. 

The amount of stamp duty you pay depends on how much your property is worth; so the more valuable your property, the more stamp duty you’ll pay.

In this article. I am going to be breaking down what stamp duty applies to, how it is calculated, the exemptions to stamp duty, will stamp duty be charged on new buildings, the new higher rate introduced in Ireland in 2022, the charges associated with stamp duty, stamp duty in regards to gifts and inheritance and an overall summary of stamp duty. 

  1. What does stamp duty apply to?
  2. How do I calculate stamp duty?
  3. What exemptions are there to stamp duty?
  4. Is stamp duty charged on new builds?
  5. What is the new higher stamp rate that has been introduced?
  6. What costs are involved with stamp duty?
  7. Do I have to pay stamp duty on a property I was gifted/inherited?
  8. Summary. 

1.What does stamp duty Ireland apply to?

stamp duty 1

Stamp duty will be applied every time you become a property owner. It applies to all properties, whether they be brand new or second hand. However new builds will not be subject to VAT, I go into this in more detail here.

Stamp duty applies to all residential properties such as houses, apartments or sites that will be used for buildings .

It also applies to non-residential property, such as land or housing sites without residential buildings. 

2. How do I calculate stamp duty?

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In Ireland ,stamp duty is levied at 1% up to €1 million. Any property over €1 million is levied at 2%. 

Here’s an example excluding VAT-

Lets say you have a property worth €2 million. 

First €1 million1%€10,000
Remaining €1 million2%€20,000
Total stamp duty €30,000

For non-residential properties, stamp duty is charged at 6%.

So what is the difference between residential and non-residential properties?

To put it simply, a residential property is one suitable for dwelling, such as a home or an apartment. Stamp duty is charged at 1-2% for residential properties. 

Don’t worry too much about calculating the stamp duty of your own property, as your solicitor will do this for you. 

However, it’s still good to know roughly how much stamp duty you will have to pay before purchasing a property.

3.What exemptions are there to stamp duty Ireland?

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Of course there are a few exceptions where you don’t have to pay stamp duty. 

There is no stamp duty charged on the transfer of property between-

  • Spouses and civil partners.
  • Former spouses (divorced).
  • One cohabitant to their other cohabitant. 

If you are buying a home under the local authority tenant purchase scheme you will only be charged €100 worth of stamp duty. 

4.Is stamp duty Ireland charged on new builds?

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For new builds, stamp duty is still paid, however it is calculated differently. For new builds you will be charged stamp duty on the value of the home and VAT will not be included. 

Here’s an example-

The standard rate of VAT is 23%. Let’s say we have a property worth €450,000. 23% of €450,000 is €103,500. This means that before VAT the value of the home was €346,500. Hence our 1% stamp duty tax will be charged on the €346,500, not the €450,000.

This only applies to new builds, not 2nd hand properties. 

5.What is the higher stamp duty Ireland rate that has been introduced in 2021?

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In July 2021, an act was introduced that charges 10% stamp duty on property owners who have bought 10 or more properties within one year after the 20th of May 2021. 

This act was introduced to stop the bulk buying of homes in Ireland and to discourage investment funds from buying up housing estates, so first time buyers are given a chance to purchase a home. 

This higher rate does NOT apply to apartments. It also does not apply to homes bought for social housing purposes. 

6.What are the costs involved with stamp duty Ireland?

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Your solicitor will calculate how much stamp duty is due for you before the sale is closed. This stamp duty is paid to the Revenue Commission and a stamp is placed on the deeds of the property. 

Whilst having a solicitor to do all the hard paper work for you is a huge help, it does come at a price.

The price of a solicitor to guide you through this process will vary. Some solicitors will charge a flat fee, whilst some will ask for a % value of the property, such as 1 or 2%. 

You should be prepared to spend between €1000-€3000 in legal fees along with VAT. 

This is why it is important to research a good solicitor that will get the job done at a reasonable price before thinking about transferring properties. Check out more on solicitor fees here.

7. Do I have to pay stamp duty Ireland on a property I inherited or was gifted?

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According to the Revenue Commission [1] , if you are given a property as a gift that is situated in Ireland and the property has been transferred to you then yes, you will still have to pay stamp duty

However you will NOT have to pay stamp duty on a property that you have inherited, such as a property left to you in a will.

In a Nutshell – Stamp duty Ireland

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So in summary, stamp duty is a major factor to take into consideration when you are planning on buying a property.

It is important to remember that between buying the property, solicitor fees as well as stamp duty, buying property requires a lot of money. Hence you should thoroughly research how much a property will cost you and put a lot of thought in before you start enquiring.

From this article, you should hopefully have a better understanding of how stamp duty is calculated and what factors you should keep in mind before looking about buying a new property.  

What’s Next?

If you have any more questions about stamp duty or buying a new property feel free to book an appointment with our financial advisors here at moneysherpa free of charge here.

If you want to see what you could save by calculating your repayments and see all mortgage provider rates you can click here.

If you want to know more about other mortgage providers you can click here.

If you want to know more about longer term fixed rates, you can check out our deep dive best fixed rate mortgage piece here or how fixed versus variable compares here.

If you want to know more about switching you can click here. Or you can check out our handy switching mortgage guide here and our remortgaging guide here. If you still have questions check out our switching Q&A here.

If you are thinking of freeing up some extra cash from your home, take a look at our mortgage top up tips here or if you are over 55 our equity release rundown here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.

APRC, the Ultimate Guide. What It Is and Why It Could Save You €20,000+.

ICS Mortgages Review
APRC

So what is Annual Percentage Rate of Change, (APRC) ? While it may seem confusing at first, APRC is a helpful tool that shows us the true cost of mortgages, so we can compare them to find the cheapest option. That’s why the CCPC [1] recommends using APRC to compare mortgages.

APRC is a really handy guide that tells us which mortgage is the best value for money if we see it through. APRC takes all costs involved in a mortgage and converts it into a percentage. This percentage shows us how much a mortgage costs after every factor is taken into consideration. 

This is really helpful when trying to find the best mortgage available, as all you have to do is look at the APRC percentage. The lower the percentage, the cheaper the mortgage is if it’s paid off completely. 

In this article, I will be discussing APRC in a bit more detail to help you better understand how it works, why it is useful to us, the difference between APR and APRC, how APRC is calculated and finally, how to get a loan with low APRC. 

  1. What is APRC?
  2. Why is APRC useful?
  3. What is the difference between APR and APRC?
  4. How is APRC calculated?
  5. How to get a loan with low APRC?
  6. Summary

1.What is APRC?

APRC 1

Annual Percentage Rate of Change (APRC) is a useful tool when comparing mortgages. It shows us the total cost of a mortgage when all factors are taken into consideration.

Factors such as fees and interest rates will greatly affect how much your mortgage will cost you overall. 

APRC will take all these factors into consideration to show us in percentage form how much a mortgage with a particular lender will cost us if we see the mortgage through to the end. 

It helps us see at a glance which mortgage provider offers the best mortgage to us after all costs have been taken into consideration. Remember; the lower the APRC rate, the cheaper the mortgage. 

2.Why is APRC useful?

APRC 2

Marketers will often try to persuade homeowners into buying a specific mortgage with attractive offers such as low starting interest rates or cashback. 

However, once you take the different factors into consideration, such as high variable rates introduced after the introductory period is over, you may soon discover that a once appealing mortgage is in reality quite expensive compared to other lenders. 

APRC helps homeowners compare mortgages from different lenders and prevents them from being swayed by attractive starting rates and other misleading factors. 

Let’s look at an example. Say a homeowner wants to mortgage a house worth €150000 and has a deposit down of €30000. APRC will help us see out of these 2 mortgages which is this best value for €120000. 

Mortgage AMortgage B
Starting Rate 0.99% for 24 months 1.39% for 24 months 
Standard Variable Rate 4.99% for 23 years 4.75% for 23 years 
Fees up front €1600

At a glance, many may think that Mortgage A is the best option, as it offers a much cheaper starting rate. 

However, as APRC will tell us, Mortgage B is in fact the better option, as it offers a lower standard variable rate than Mortgage A , as well as no fee up front.  

Mortgage AMortgage B
Overall cost €245,559€238,332
APRC 4.5%4.2%

Because Mortgage B’s APRC percentage is lower, it means that it is the cheaper option, saving you €7,227 over the lifetime of the mortgage.

3. What is the difference between APR and APRC ?

APRC 3

It’s very easy to get confused between APR and APRC, as they are similar in name and in meaning. 

Annual Percentage Rate (APR) works in a similar way to APRC, as it helps us compare the total cost of loans and credit. APR shows a percentage of how much interest the borrower pays on a loan, such as a mortgage, per year. 

Annual Percentage Rate of Change shows a percentage of the total cost of a loan such as a mortgage after all factors are considered.

In comparison to APR, APRC doesn’t just show us the cost of a loan after one year, instead it shows us how much the loan will cost us once it’s paid in full.

4.How is APRC calculated?

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APRC takes a variety of different factors into consideration, such as broker fees and different interest rates, to calculate how much your mortgage will cost you for the full period of the loan. 

One vital piece of information that you must remember when looking at different APRC percentages on loans is that APRC takes all factors into consideration assuming that you will see this loan out until it has been PAID IN FULL. 

APRC shows how much you will pay over the full term of the mortgage, meaning APRC is not useful if you are considering moving house or switching lenders. 

So before you decide to look at different APRC percentages to help decide what the best mortgage for you is, consider certain factors, such as how long will I stay in this property? What life events are likely to happen in the near future that will affect my living situation?

If you think that you may be switching mortgages or moving property in the near future, APRC therefore might not be as important. This is because as you are planning to pay off the mortgage early and get a new one when you switch or move the introductory rate will apply for a larger proportion of the loan than shown in the APRC which assumes you will have the mortgage for the full term.

This is why although not making sense for everybody cashback and low introductory rates are a good option for those looking to switch regularly.

5. How do I get a loan with a low APRC?

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Getting your loan with APRC is influenced by a variety of factors like:

The amount of available equity in your property– If you have a lot of available equity in your property and apply for a smaller loan, you are less of a risk to your lender, therefore earning a better interest rate bringing your APRC percentage down.

How much you want to borrow– The more you borrow, the lower rate you’ll be paying which again affects your APRC, as APRC assumes you will stay with this mortgage until it is paid in full.

The length of the mortgage- The longer your mortgage is the less you will pay per month, as the payments are stretched across a longer period of time.

Size of deposit– The more money you have in your deposit on a house, the lower the interest rate, as you are not seen as a risk to the lender.

6.Summary – APRC

So to summarise, when you think APRC, remember-

APRC is a tool to help you compare mortgages and find the best mortgage available.

The lower the percentage, the cheaper the mortgage is once it’s paid full term.

APRC shows percentages assuming you will stick with one particular mortgage to the end.

Always predict changes in your living situation in the near future before thinking about using APRC to find the best mortgage.

What’s next?

If you have any more questions about stamp duty or buying a new property feel free to book an appointment with our financial advisors here at moneysherpa free of charge here.

If you want to see what you could save by calculating your repayments and see all mortgage provider rates you can click here.

If you want to know more about other mortgage providers you can click here.

If you want to know more about longer term fixed rates, you can check out our deep dive best fixed rate mortgage piece here or how fixed versus variable compares here.

If you want to know more about switching you can click here. Or you can check out our handy switching mortgage guide here and our remortgaging guide here. If you still have questions check out our switching Q&A here.

If you are thinking of freeing up some extra cash from your home, take a look at our mortgage top up tips here or if you are over 55 our equity release rundown here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.

What is a Green Mortgage Ireland and why should I consider applying for one?

Green Mortgage Ireland

Green Mortgage Ireland

Green Mortgage Ireland. As the world is becoming more environmentally conscious, so are mortgage lenders. Green mortgages are slowly becoming more and more popular as they are a great incentive to make our homes more energy efficient, which will help us save money as well as our planet.

Here at moneysherpa, we have looked at the different Green Mortgages Ireland, as well as the requirements necessary for a Green Mortgage in Ireland. We have also put together some useful ways you can make home more energy efficient to impress Green Mortgage providers.

In this article, I will be discussing why you should consider applying for a Green Mortgage, what you have to do in order to apply for one, what you can do to make your home more eligible for a Green Mortgage and overall, are Green Mortgages worth the time and effort required?

1. Why should I consider applying for a Green Mortgage Ireland ?

2. What do I need to do to apply for a Green Mortgage Ireland ?

3. How can I make my home more energy efficient? – Green Mortgage Ireland

4. Final verdict – Green Mortgage Ireland.

1. Why should I consider applying for a Green Mortgage Ireland?

green mortgage ireland

As I have mentioned previously, a Green Mortgage acts as an incentive to encourage people to make their homes more environmentally friendly. Lenders will offer certain rewards such as lower interest rates to homeowners whose homes are considered energy efficient. 

Many lenders such as Bank of Ireland and Ulster Bank all offer lower interest rates for homeowners applying for a Green Mortgage. 

Haven Mortgages have offered a 2.15% fixed rate on homes that they believe to be energy efficient, as well as offering €2000 to cover legal costs.

Haven have stated that homeowners with an existing mortgage of €300,000 on a €350,000 home could save up to €3,204 per year by availing of this 2.15% fixed rate, instead of the usual variable rate of 3.7%.  

2. What do I need to do to apply for a Green Mortgage Ireland?

BER

When it comes to Green Mortgages, your bank will ask you for a document known as a Building Energy Rating (BER), which essentially is a calculation of how energy efficient your home is. BER certificates are valid for up to 10 years. 

The BER measures how energy efficient your home is on a scale of A to G, with A being the most energy efficient your home can be. So what factors will affect your BER rating? Well, there are a variety of aspects affecting your BER, such as adequate insulation, a working boiler, etc..

The vast majority of banks will require a BER rating of at least B3 or B2 in order to qualify and apply for a Green Mortgage. 

Lenders such as AIB, Ulster Bank, Bank of Ireland and Haven Mortgages all provide Green Mortgages in Ireland in 2021.

In order to avail of a Green Mortgage, you will have to receive your mortgage from one of these 4 lenders. However, if you are not with any of these specific lenders, you can contact a broker and switch to one of these mortgage providers to avail of a Green Mortgage. 

3. How can I make my home more energy efficient? Green Mortgage Ireland.

green mortgage ireland

There are many simple and straightforward things that we can do to make our homes more energy efficient, which will increase our BER rating as well as save us money in the long run.

We can take certain easy and affordable measures such as keeping the immersion at 65 degrees or using efficient electrical lighting to make our homes B3 worthy. However, if you are willing to invest in making your home even more energy efficient, you could replace your unproductive boiler with a water pump which renews energy, or look about taking further steps to properly insulate your home. 

All these measures, big or small, will help to maximise the energy efficiency of your home and overall will help make your application for a Green Mortgage more likely to succeed, and may even save you money by reducing your energy bills and making your home cheaper to heat!

Final Verdict: Should I apply for a Green Mortgage Ireland?

Green Mortgage Ireland

Overall, Green Mortgages are a great way to save money on a more energy efficient home. Making your home energy efficient won’t only allow you to benefit from a lower fixed interest rate, but will also help you save money in areas such as heating and electricity.

However, making your home more energy efficient does come at a price, so you should only avail of a Green Mortgage if you are willing to put the time, effort and money required into making your home more sustainable.

So, what’s next? Green Mortgage Ireland.

1. Check with your mortgage provider to see if they offer Green Mortgages and if so, what incentives do they offer for those who avail of this mortgage?

2. Research and find out if your home is eligible for a Green Mortgage and check your BER rating by contacting a BER assessor. 

3. Try and find different affordable ways to make your home more energy efficient and B3 worthy.

If you are interested in switching your mortgage to a green mortgage, you can find out more about mortgage switching here.

If you want to calculate how much you would save by switching to a green mortgage, check out our mortgage calculator here.

If you wish to switch mortgage providers to a lender offering Green Mortgages, feel free to contact one of our mortgage sherpas for a free consultation. 

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